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Interest Rates
 

Interest Rates

CPF Interest Rates (01 Apr 2015 to 30 Jun 2015)
(reviewed quarterly)
Ordinary Account Up to 3.50% p.a.
Special & Medisave Accounts Up to 5.00% p.a.

 
CPF Interest Rate (01 Jan 2015 to 31 Dec 2015)
(reviewed yearly)
Retirement Account Up to 5.00% p.a.

Central Provident Fund (CPF) members currently earn interest rates of up to 3.5% per annum on their Ordinary Account (OA) monies, and up to 5% per annum on their Special and Medisave Account (SMA) monies. Retirement Account (RA) monies currently earn up to 5% per annum.

The above interest rates include an additional 1% interest paid on the first $60,000 of a member’s combined balances (with up to $20,000 from the OA), which is part of the Government’s efforts to enhance the retirement savings of CPF members.

Interest Rate for Ordinary Account

The interest rate on Ordinary Account (OA) monies is adjusted quarterly. OA monies earn either the legislated minimum interest of 2.5% per annum, or the 3-month average of major local banks’ interest rates, whichever is higher.

The OA interest rate will be maintained at 2.5% per annum from 1 April 2015 to 30 June 2015, as the computed rate of 0.21% is lower than the legislated minimum interest rate.

Interest Rate for Special and Medisave Account

The interest rate on Special and Medisave Account (SMA) monies is adjusted quarterly. SMA monies earn either the current floor interest rate of 4% per annum or the 12-month average yield of 10-year Singapore Government Securities (10YSGS) plus 1%, whichever is higher.

The SMA interest rate will be maintained at 4% per annum from 1 April 2015 to 30 June 2015, as the computed rate of 3.33% is lower than the current floor interest rate.

Interest Rate for Retirement Account

Retirement Account (RA) monies credited in 2015 will be invested in newly-issued Special Singapore Government Securities (SSGS) which will earn a fixed coupon rate equal to either the 12-month average yield of the 10YSGS plus 1% computed for the year, or the current floor rate of 4% per annum, whichever is higher. 

The average yield of the 10YSGS plus 1% from November 2013 to October 2014 is 3.4% per annum. As this is below the current floor rate of 4% per annum, new SSGS issued in the year of 2015 will pay a fixed coupon of 4%.

The interest rate earned by RA monies is the weighted average interest rate of the entire portfolio of these SSGS, which is adjusted in January each year to take into account the coupon rates payable by the new SSGS issuance.

The RA interest rate will be maintained at 4% per annum from 1 January 2015 to 31 December 2015. 

Additional Interest of 1%

An additional 1% interest is paid on the first $60,000 of a member’s combined balances, of which up to $20,000 comes from the OA. The additional interest earned on OA monies will go to the member’s SA or RA, to enhance their retirement adequacy. If a member is above 55 years old and participates in the CPF LIFE scheme, the additional 1% interest will still be earned on his combined balances, which includes the savings used for CPF LIFE.

Details on how CPF interest rates are computed can be found in News Releases.

Note: Special Singapore Government Securities (SSGS) are non-tradable bonds issued specifically to CPF Board, Singapore's national pension fund. Singaporeans’ CPF monies are invested in these special securities, which are guaranteed by the Government.

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CPF Interest Rates 1955 - 2015 (0.08MB)

 Last Updated on: Monday, March 30, 2015 at 5:29 PM
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