http://www.straitstimes.com/Breaking+News/Singapore/Story/STIStory_388416.html
CPF rates to stay at 4%
By Melissa Pang
INTEREST rates for CPF savings in the Special, Medisave, and Retirement Accounts (SMRA) will be maintained at 4 per cent floor rate until the end of the year, said the Central Provident Fund Board on Wednesday.
Since Jan 1, 2008, the interest rate for savings in the SMRA has been pegged to the 12-month average yield of the 10-year Singapore Government Security (10SYGS), plus one per cent.
Extra 1 per cent
THE 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.
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The average yield of the 10SYGS over the period from June 2, 2008 to May 29 this year, plus 1 per cent, worked out to be 3.61 per cent.
To help CPF members adjust to the floating SMRA rate, the Government will maintain the four per cent floor rate for two years, till Dec 31 this year.
Should the 10YSGS yield plus 1 per cent fall below 4 per cent after Dec 31, the 2.5 per cent floor rate will apply for all CPF accounts.
The CPF Board said its interest rate will continue to be reviewed quarterly to help Singaporeans ensure they have sufficient funds for retirement.
