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CPF floating rate to be announced next month

THE interest rate for the Central Provident Fund (CPF) Special, Medisave and Retirement accounts (SMRA) for April to June this year will be announced next month, after the average yield of the 10-year Singapore Government Security (SGS) is computed, said the CPF Board yesterday.

The SMRA is based on the average yield of the 10-year SGS plus 1 per cent. A 4 per cent minimum will be maintained for two years to help CPF members adjust to the floating rate.

In addition, an extra 1 per cent will be paid on the first $60,000 of a member’s combined balances, with up to $20,000 from the Ordinary Account. This will go towards the member’s Special or Retirement account to enhance retirement savings, said CPF.

The CPF interest rate and HDB mortgage rate will remain the same for April 1 to June 30.

In a joint statement yesterday, the CPF Board said it would pay interest of 2.5 per cent a year for savings in the Ordinary Account to its members.

The concessionary interest rate for HDB loans, pegged at 0.1 percentage point above the CPF Ordinary Account rate, will remain unchanged at 2.6 per cent a year. The CPF interest rate is reviewed quarterly.

 

Source: The Straits Times 19 Feb 08

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