SINGAPORE: The interest rate for Central Provident Fund (CPF) Special and Medisave accounts (SMA) will remain at 4 per cent from April 1 to June 30.
In a statement on Monday, the CPF Board said the 12-month average yield of 10-year Singapore Government Securities plus 1 per cent, from March 2013 to February 2014, works out to be 3.19 per cent.
Accordingly, the SMA interest rate payable to CPF members from April 1 to June 30 will be kept at the current floor rate of 4 per cent.
Savings in the SMA currently earn either 4 per cent or the 12-month average yield of 10-year Singapore Government Securities plus 1 per cent, whichever is higher.
The interest rate on SMA savings is adjusted quarterly, based on interest rates on 10-year Singapore Government Securities over a preceding 12-month period.
The government announced in September 2013 that the 4 per cent per annum floor rate for interest earned on all SMA monies and Retirement Account (RA) monies will be maintained until December 31, 2014.