SINGAPORE: All Central Provident Fund (CPF) members will continue to enjoy a risk-free interest rate of 4 per cent per annum on their Special and Medisave Accounts (SMA) from July 1 to Sept 30 this year.
According to a statement by the CPF Board on Tuesday (June 24), it said this move is in line with the Government’s announcement made in September 2013 to maintain the 4 per cent per annum floor rate for interest earned on all SMA monies and Retirement Account monies until Dec 31 this year.
The computed CPF interest rate – derived from the 12-month average yield of 10-year Singapore Government Securities plus 1 per cent – worked out to be 3.42 per cent from June 2013 to May 2014. But since this was below the legislated minimum of 4 per cent per annum, the SMA interest rate will remain at the minimum amount, the agency said.
source: channelnewsasia.com
