4% p.a. for CPF Special, Medisave and Retirement Account

Interest rate for SMA mon­ies

Sav­ings in the Spe­cial and Medis­ave Accounts (SMA) cur­rently earn either 4% or the 12-month aver­age yield of 10-year Singa­pore Gov­ern­ment Secur­it­ies (10YSGS) plus 1%, whichever is the high­er. The interest rate on SMA sav­ings is adjus­ted quarterly, based on interest rates on 10YSGS over a pre­ced­ing 12-month peri­od. The aver­age yield of the 10YSGS plus 1%, from March 2013 to Feb­ru­ary 2014, is 3.19%. There­fore, the SMA interest rate from 1 April 2014 to 30 June 2014 will be main­tained at the cur­rent floor of 4%.

Interest Rate for RA Mon­ies  

New Retire­ment Account (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%, whichever is the high­er, adjus­ted yearly. Giv­en the lower 10YSGS yield, new RA sav­ings will earn a fixed coupon of 4%.

An addi­tion­al 1% interest will con­tin­ue to be paid on the first $60,000 of a member’s com­bined bal­ances, with up to $20,000 from the Ordin­ary Account (OA).  The addi­tion­al interest received on the OA will go into the member’s Spe­cial Account (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% interest will still be earned on his com­bined bal­ances, which includes the sav­ings used for CPF LIFE.

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