CENTRAL Provident Fund members will continue to enjoy the 4 per cent minimum interest rate for the next three months.

 

This applies to savings in the Special and Medisave accounts, said the CPF Board yesterday.

 

This is in line with the Government's announcement last September that the 4 per cent floor rate will be maintained till year-end.

 

Savings from these two accounts, as well as the Retirement account, have been invested in Special Government Securities since 2008.

 

Interest rates are adjusted every three months.

 

Currently, savings in the Special and Medisave accounts earn either 4 per cent or the 12-month average yield of the 10-year Singapore Government Securities, plus 1 per cent - whichever is higher.

 

The latest yield - from June last year to May this year - stands at 2.72 per cent, including the extra 1 per cent.

 

The payable interest rate for the upcoming quarter of July 1 to Sept 30 therefore stays at 4 per cent, which is higher.

 

The Government had in 2008 said it will provide the 4 per cent floor rate for two years but this has been extended to Dec 31 this year .

 

From next year, rates will be subject to a minimum rate of 2.5 per cent a year, based on the 12-month average yield of the 10-year Singapore Government Securities, plus 1 per cent.