SINGAPORE: Central Provident Fund (CPF) members will
continue to enjoy a risk-free interest rate of four per cent on
their savings in the Special and Medisave accounts from July to
September.
The CPF Board said this is in line with the
government's announcement in September last year to maintain the
four per cent per annum floor rate for interest earned on all
monies in the Special and Medisave accounts, and the Retirement
Account until the end of this year.
Savings in the Special and Medisave accounts
currently earn either four per cent or the 12-month average yield
of 10-year Singapore Government Securities (10YSGS) plus one per
cent, whichever is higher.
The interest rate on Special and Medisave accounts is adjusted
quarterly, based on interest rates on 10YSGS over a preceding
12-month period.
The average yield of the 10YSGS plus 1 per cent, from 1 June 2011
to 31 May 2012, works out to 2.72 per cent.
CPF Board said the interest rate on Special and Medisave accounts
payable to CPF members from 1 July to 30 September will thus be
maintained at the current floor of four per cent.
- CNA/al
