http://www.straitstimes.com/Breaking+News/Singapore/Story/STIStory_424958.html
CPF maintains 4% floor rate
By Diana Othman
The government will maintain the 4 per cent floor rate for two years until Dec 31, 2009. -- ST PHOTO: MALCOLM MCLEOD
TO HELP CPF members adjust to the floating Special, Medisave and Retiring Accounts (SMRA) rate, the government will maintain the 4 per cent floor rate for two years until Dec 31, 2009, said CPF Board on Thursday.
Since January last year, interest rate for savings in the SMRA has been pegged to the 12-month average yield of the 10-year Singapore Government Security (10YSGS) plus one per cent.
The average yield of the 10YSGS over one year, from Sept 1, 2008 to Aug 31, 2009, plus one per cent worked out to be 3.40 per cent.
Hence, the SMRA interest rate from Oct 1 to Dec 31 will be 4 per cent (floor rate).
An additional one per cent interest will be paid on the first $60,000 of a member's combined balances, with up to $20,000 from the Ordinary Account (OA).
The additional interest received on the OA will go into the member's Special or Retirement Account to enhance his retirement savings.
CPF added that the interest rate will continue to be reviewed quarterly as improving returns on CPF savings is one of the key changes introduced to help Singaporeans enhance their retirement adequacy.
For more information, visit www.cpf.gov.sg or call the CPF Call Centre at 1800-227-1188.
CPF maintains 4% floor rate
By Diana Othman
The government will maintain the 4 per cent floor rate for two years until Dec 31, 2009. -- ST PHOTO: MALCOLM MCLEOD
TO HELP CPF members adjust to the floating Special, Medisave and Retiring Accounts (SMRA) rate, the government will maintain the 4 per cent floor rate for two years until Dec 31, 2009, said CPF Board on Thursday.
Since January last year, interest rate for savings in the SMRA has been pegged to the 12-month average yield of the 10-year Singapore Government Security (10YSGS) plus one per cent.
The average yield of the 10YSGS over one year, from Sept 1, 2008 to Aug 31, 2009, plus one per cent worked out to be 3.40 per cent.
Hence, the SMRA interest rate from Oct 1 to Dec 31 will be 4 per cent (floor rate).
An additional one per cent interest will be paid on the first $60,000 of a member's combined balances, with up to $20,000 from the Ordinary Account (OA).
The additional interest received on the OA will go into the member's Special or Retirement Account to enhance his retirement savings.
CPF added that the interest rate will continue to be reviewed quarterly as improving returns on CPF savings is one of the key changes introduced to help Singaporeans enhance their retirement adequacy.
For more information, visit www.cpf.gov.sg or call the CPF Call Centre at 1800-227-1188.
