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Minimum 4% interest rate for Special, Medisave and Retirement Account monies to be extended until 31 December 2015<table border="0" cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td></td><td align="left" valign="top" colspan="2"><p> <br></p><p> <span class="blackhighlight"> <strong>CPF members will continue to earn at least 4% to 5% interest rate on all SMRA Monies in 2015</strong></span></p></td></tr><tr><td> </td></tr><tr><td valign="top"> </td><td valign="top" style="width:100%;"><p>In view of the continuing low interest rate environment, the Government has decided to further extend the 4% floor rate for interest earned on all Special, Medisave and Retirement Account (SMRA) monies for another year until 31 December 2015. SMRA monies within the first $60,000 of a member’s combined balances will therefore continue to earn at least 5% interest.</p><p>Since 1 January 2008, savings in the SMRA have been invested in Special Government Securities (SSGS) which earn an interest rate pegged to the 12-month average yield of 10-year Singapore Government Securities (10YSGS) plus 1%. This is a market-based rate for instruments of comparable risk and duration, and will ensure that members receive fair and reasonable interest rates.</p><p>To help members cope with the transition, the Government had committed to providing a 4% floor rate for SMRA interest for two years up to December 2009. This was subsequently extended in light of global economic conditions and the fact that interest rates had been exceptionally low. The 4% floor rate is currently due to expire on 31 December 2014.<br></p></td></tr><tr><td valign="top"></td><td valign="top" style="width:100%;"></td></tr><tr><td valign="top"> </td><td valign="top" style="width:100%;"> <span class="blackhighlight"> <strong>CPF Interest Rate for Ordinary, Special and Medisave Accounts from 1 October 2014 to 31 December 2014</strong></span></td></tr><tr><td> </td></tr><tr><td valign="top"></td><td valign="top" style="width:100%;"><p>All CPF members will continue to earn risk-free interest rates of up to 3.5% per annum on their Ordinary Account (OA) savings, and up to 5% per annum on their Special and Medisave Accounts (SMA) from 1 October 2014 to 31 December 2014.</p><p> <strong>Interest Rate for OA and HDB’s Mortgage Rate</strong></p></td></tr><tr><td valign="top"></td><td valign="top" style="width:100%;"><p>Savings in the OA earn either the legislated minimum 2.5% per annum or the 3-month average of major local banks’ interest rates, whichever is higher. </p><p>The computed interest rate derived from the major local banks’ interest rates from May 2014 to July 2014  works out to be 0.21% per annum. As this is below the legislated minimum of 2.5% per annum, the OA interest rate for 1 October 2014 to 31 December 2014 will be maintained at the floor of 2.5% per annum.</p><p>The concessionary interest rate for HDB mortgage loans, which is pegged at 0.1 percentage points above the OA interest rate, will remain unchanged at 2.6% per annum from 1 October 2014 to 31 December 2014.</p></td></tr><tr><td valign="top"></td><td valign="top" style="width:100%;"><p>Please refer to <a href="#AnnexA">Annex A</a> for the detailed computations of the OA interest rate and HDB mortgage rate.</p><p> <strong>Interest Rate for SMA</strong></p><p>Savings in the SMA earn either 4% per annum<sup>1</sup>; or the 12-month average yield of 10-year Singapore Government Securities (10YSGS) plus 1%, whichever is higher. The interest rate on SMA savings is adjusted quarterly, based on the interest rates on 10YSGS over a preceding 12-month period.</p><p>The average yield of the 10YSGS plus 1%, from August 2013 to July 2014, works out to be 3.41% per annum. As this is below the current floor of 4% per annum, the SMA interest rate for 1 October 2014 to 31 December 2014 will be maintained at the floor of 4% per annum.</p><p>Please refer to <a href="#AnnexB">Annex B</a> for the computation of the SMA interest rate. </p><div> <sup>1 </sup>This is in line with the Government’s announcement made in September 2013 to maintain the 4% per annum floor rate for interest earned on all Special, Medisave and Retirement Account savings until 31 December 2014.</div><div> </div><p> <strong>Additional Interest of 1% to help you grow your savings</strong></p><p>As part of the government’s efforts to enhance the retirement savings of CPF members, an additional 1% per annum interest will continue to be paid on the first $60,000 of a member’s combined balances, with up to $20,000 from OA. This works out to be 3.5% per annum earned on the first $20,000 in a member’s OA, and 5% per annum earned on the first $40,000 (up to $60,000 if no OA savings) in a member’s Special, Medisave and Retirement Accounts. About two-thirds of all CPF members are earning up to 5% interest on all of their SMRA savings.</p><p>The additional interest received on the OA will go into the member’s SA or RA to enhance his retirement savings. If a member is above 55 years old and participates in the CPF LIFE scheme, the additional 1% per annum interest will still be earned on his combined balances, which includes the savings used for CPF LIFE.</p></td></tr><tr><td valign="top"> </td><td valign="top" style="width:100%;"></td></tr><tr><td valign="top"> </td><td valign="top" style="width:100%;"><p> <span class="blackhighlight"><strong>Background Information on CPF Interest Rates</strong></span></p><p> <span class="blackhighlight"><strong>Interest Rate for Retirement Account (RA)</strong></span></p><p>New RA savings are invested in SSGS which earn a fixed coupon equal to either the 12-month average yield of the 10YSGS plus 1% at the point of issuance, or 4% per annum, whichever is the higher, adjusted yearly.</p><p>Given the lower 10YSGS yield, new RA savings will earn a fixed coupon of 4% (floor rate).</p><p>The interest rate to be credited to the RA is the weighted average interest rate of the entire portfolio of these SSGS, and adjusted yearly in January. The weighted average interest of the entire portfolio of these SSGS is 4% at the moment, so the interest rate payable to CPF members on their RA balances from 1 January 2014 to 31 December 2014 will be 4% per annum, as announced on 13 December 2013.</p></td></tr><tr><td valign="top"></td><td valign="top" style="width:100%;"></td></tr><tr><td> </td></tr><tr><td valign="top"></td><td valign="top" style="width:100%;"><table width="100%" border="0"><tbody><tr><td valign="top"> <span class="blackhighlight"><strong>Public Enquiries</strong></span></td></tr><tr><td valign="top"><p> For more information, please visit <a href="http://www.cpf.gov.sg/">www.cpf.gov.sg</a> or call the CPF Call Centre at 1800-227-1188.</p></td></tr></tbody></table></td></tr><tr><td> </td></tr><tr><td valign="top"> </td><td valign="top" style="width:100%;"><div align="right"> <a name="AnnexA"></a><span class="blackhighlight"><a name="AnnexA"></a><strong>Annex A</strong></span></div><div align="right"> <span class="blackhighlight"> </span></div></td></tr><tr><td valign="top"> </td><td valign="top" style="width:100%;"> <img src="/Assets/common/PublishingImages/18Sep14_Min4InterestRate_AnnexA.PNG" alt="CPF OA interest rate and HDB mortgage rate for 1 Oct 2014 to 31 Dec 2014" style="width:89%;height:auto;" /> </td></tr><tr><td valign="top"> </td><td valign="top" style="width:100%;"> </td></tr><tr><td> </td></tr><tr><td valign="top"> </td><td valign="top" style="width:100%;"><div align="right"> <a name="AnnexB"></a><span class="blackhighlight"><a name="AnnexB"></a><strong>Annex B</strong></span></div></td></tr><tr><td valign="top"> </td><td valign="top" style="width:100%;"> </td></tr><tr><td valign="top"> </td><td valign="top" style="width:100%;"> <img src="/Assets/common/PublishingImages/18Sep14_Min4InterestRate_AnnexB.PNG" alt="CPF SMA interest rate for 1 Oct 2014 to 31 Dec 2014 " style="width:100%;height:auto;" /> </td></tr><tr><td valign="top"> </td><td valign="top" style="width:100%;"> </td></tr><tr><td valign="top"> </td><td valign="top" style="width:100%;">Note:</td></tr><tr><td valign="top"> </td><td valign="top" style="width:100%;">1. Source: Yields of 10-Year Singapore Government Securities are obtained from <a href="http://www.sgs.gov.sg/">www.sgs.gov.sg</a></td></tr><tr><td> </td></tr><tr><td> </td></tr><tr><td valign="top"> </td><td valign="top" style="width:100%;"><p align="center"> <span class="blackhighlight"><strong>10-Year SGS Yield from August 2013 to July 2014</strong></span></p><p align="center"> <span class="blackhighlight"><img src="/Assets/members/PublishingImages/10YRSGS_18Sep14.jpg" alt="10-Year SGS Yield from August 2013 to July 2014" style="width:87%;height:auto;" /></span> </p></td></tr></tbody></table> <br> <br> <br>Minimum 4% interest rate for Special, Medisave and Retirement Account monies to be extended until 31 December 2015TrueFalseTrue

 

 

Minimum 4% interest rate for Special, Medisave and Retirement Account monies to be extended until 31 December 2015<table border="0" cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td></td><td align="left" valign="top" colspan="2"><p> <br></p><p> <span class="blackhighlight"> <strong>CPF members will continue to earn at least 4% to 5% interest rate on all SMRA Monies in 2015</strong></span></p></td></tr><tr><td> </td></tr><tr><td valign="top"> </td><td valign="top" style="width:100%;"><p>In view of the continuing low interest rate environment, the Government has decided to further extend the 4% floor rate for interest earned on all Special, Medisave and Retirement Account (SMRA) monies for another year until 31 December 2015. SMRA monies within the first $60,000 of a member’s combined balances will therefore continue to earn at least 5% interest.</p><p>Since 1 January 2008, savings in the SMRA have been invested in Special Government Securities (SSGS) which earn an interest rate pegged to the 12-month average yield of 10-year Singapore Government Securities (10YSGS) plus 1%. This is a market-based rate for instruments of comparable risk and duration, and will ensure that members receive fair and reasonable interest rates.</p><p>To help members cope with the transition, the Government had committed to providing a 4% floor rate for SMRA interest for two years up to December 2009. This was subsequently extended in light of global economic conditions and the fact that interest rates had been exceptionally low. The 4% floor rate is currently due to expire on 31 December 2014.<br></p></td></tr><tr><td valign="top"></td><td valign="top" style="width:100%;"></td></tr><tr><td valign="top"> </td><td valign="top" style="width:100%;"> <span class="blackhighlight"> <strong>CPF Interest Rate for Ordinary, Special and Medisave Accounts from 1 October 2014 to 31 December 2014</strong></span></td></tr><tr><td> </td></tr><tr><td valign="top"></td><td valign="top" style="width:100%;"><p>All CPF members will continue to earn risk-free interest rates of up to 3.5% per annum on their Ordinary Account (OA) savings, and up to 5% per annum on their Special and Medisave Accounts (SMA) from 1 October 2014 to 31 December 2014.</p><p> <strong>Interest Rate for OA and HDB’s Mortgage Rate</strong></p></td></tr><tr><td valign="top"></td><td valign="top" style="width:100%;"><p>Savings in the OA earn either the legislated minimum 2.5% per annum or the 3-month average of major local banks’ interest rates, whichever is higher. </p><p>The computed interest rate derived from the major local banks’ interest rates from May 2014 to July 2014  works out to be 0.21% per annum. As this is below the legislated minimum of 2.5% per annum, the OA interest rate for 1 October 2014 to 31 December 2014 will be maintained at the floor of 2.5% per annum.</p><p>The concessionary interest rate for HDB mortgage loans, which is pegged at 0.1 percentage points above the OA interest rate, will remain unchanged at 2.6% per annum from 1 October 2014 to 31 December 2014.</p></td></tr><tr><td valign="top"></td><td valign="top" style="width:100%;"><p>Please refer to <a href="#AnnexA">Annex A</a> for the detailed computations of the OA interest rate and HDB mortgage rate.</p><p> <strong>Interest Rate for SMA</strong></p><p>Savings in the SMA earn either 4% per annum<sup>1</sup>; or the 12-month average yield of 10-year Singapore Government Securities (10YSGS) plus 1%, whichever is higher. The interest rate on SMA savings is adjusted quarterly, based on the interest rates on 10YSGS over a preceding 12-month period.</p><p>The average yield of the 10YSGS plus 1%, from August 2013 to July 2014, works out to be 3.41% per annum. As this is below the current floor of 4% per annum, the SMA interest rate for 1 October 2014 to 31 December 2014 will be maintained at the floor of 4% per annum.</p><p>Please refer to <a href="#AnnexB">Annex B</a> for the computation of the SMA interest rate. </p><div> <sup>1 </sup>This is in line with the Government’s announcement made in September 2013 to maintain the 4% per annum floor rate for interest earned on all Special, Medisave and Retirement Account savings until 31 December 2014.</div><div> </div><p> <strong>Additional Interest of 1% to help you grow your savings</strong></p><p>As part of the government’s efforts to enhance the retirement savings of CPF members, an additional 1% per annum interest will continue to be paid on the first $60,000 of a member’s combined balances, with up to $20,000 from OA. This works out to be 3.5% per annum earned on the first $20,000 in a member’s OA, and 5% per annum earned on the first $40,000 (up to $60,000 if no OA savings) in a member’s Special, Medisave and Retirement Accounts. About two-thirds of all CPF members are earning up to 5% interest on all of their SMRA savings.</p><p>The additional interest received on the OA will go into the member’s SA or RA to enhance his retirement savings. If a member is above 55 years old and participates in the CPF LIFE scheme, the additional 1% per annum interest will still be earned on his combined balances, which includes the savings used for CPF LIFE.</p></td></tr><tr><td valign="top"> </td><td valign="top" style="width:100%;"></td></tr><tr><td valign="top"> </td><td valign="top" style="width:100%;"><p> <span class="blackhighlight"><strong>Background Information on CPF Interest Rates</strong></span></p><p> <span class="blackhighlight"><strong>Interest Rate for Retirement Account (RA)</strong></span></p><p>New RA savings are invested in SSGS which earn a fixed coupon equal to either the 12-month average yield of the 10YSGS plus 1% at the point of issuance, or 4% per annum, whichever is the higher, adjusted yearly.</p><p>Given the lower 10YSGS yield, new RA savings will earn a fixed coupon of 4% (floor rate).</p><p>The interest rate to be credited to the RA is the weighted average interest rate of the entire portfolio of these SSGS, and adjusted yearly in January. The weighted average interest of the entire portfolio of these SSGS is 4% at the moment, so the interest rate payable to CPF members on their RA balances from 1 January 2014 to 31 December 2014 will be 4% per annum, as announced on 13 December 2013.</p></td></tr><tr><td valign="top"></td><td valign="top" style="width:100%;"></td></tr><tr><td> </td></tr><tr><td valign="top"></td><td valign="top" style="width:100%;"><table width="100%" border="0"><tbody><tr><td valign="top"> <span class="blackhighlight"><strong>Public Enquiries</strong></span></td></tr><tr><td valign="top"><p> For more information, please visit <a href="http://www.cpf.gov.sg/">www.cpf.gov.sg</a> or call the CPF Call Centre at 1800-227-1188.</p></td></tr></tbody></table></td></tr><tr><td> </td></tr><tr><td valign="top"> </td><td valign="top" style="width:100%;"><div align="right"> <a name="AnnexA"></a><span class="blackhighlight"><a name="AnnexA"></a><strong>Annex A</strong></span></div><div align="right"> <span class="blackhighlight"> </span></div></td></tr><tr><td valign="top"> </td><td valign="top" style="width:100%;"> <img src="/Assets/common/PublishingImages/18Sep14_Min4InterestRate_AnnexA.PNG" alt="CPF OA interest rate and HDB mortgage rate for 1 Oct 2014 to 31 Dec 2014" style="width:89%;height:auto;" /> </td></tr><tr><td valign="top"> </td><td valign="top" style="width:100%;"> </td></tr><tr><td> </td></tr><tr><td valign="top"> </td><td valign="top" style="width:100%;"><div align="right"> <a name="AnnexB"></a><span class="blackhighlight"><a name="AnnexB"></a><strong>Annex B</strong></span></div></td></tr><tr><td valign="top"> </td><td valign="top" style="width:100%;"> </td></tr><tr><td valign="top"> </td><td valign="top" style="width:100%;"> <img src="/Assets/common/PublishingImages/18Sep14_Min4InterestRate_AnnexB.PNG" alt="CPF SMA interest rate for 1 Oct 2014 to 31 Dec 2014 " style="width:100%;height:auto;" /> </td></tr><tr><td valign="top"> </td><td valign="top" style="width:100%;"> </td></tr><tr><td valign="top"> </td><td valign="top" style="width:100%;">Note:</td></tr><tr><td valign="top"> </td><td valign="top" style="width:100%;">1. Source: Yields of 10-Year Singapore Government Securities are obtained from <a href="http://www.sgs.gov.sg/">www.sgs.gov.sg</a></td></tr><tr><td> </td></tr><tr><td> </td></tr><tr><td valign="top"> </td><td valign="top" style="width:100%;"><p align="center"> <span class="blackhighlight"><strong>10-Year SGS Yield from August 2013 to July 2014</strong></span></p><p align="center"> <span class="blackhighlight"><img src="/Assets/members/PublishingImages/10YRSGS_18Sep14.jpg" alt="10-Year SGS Yield from August 2013 to July 2014" style="width:87%;height:auto;" /></span> </p></td></tr></tbody></table> <br> <br> <br>Minimum 4% interest rate for Special, Medisave and Retirement Account monies to be extended until 31 December 201517/9/2014 4:00:00 PMhttps://null/common/Lists/News/DispForm.aspx?ID=2236Central Provident Fund Board and Housing & Development Board

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