CPF Medisave Required Amount and latest CPF Interest Rate

For those who are turn­ing 55 years old on 1 Jan 2012, take note that the CPF Medis­ave Required Amount (MRA) is now raised from $27,500 to $32,000 now. This means that you will need to top-up the MRA amount of $32,000 before you are allowed to with­draw the excess of your CPF Min­im­um Sum, which is $131,000 this year.

The interest rate for Spe­cial and Medis­ave Account (SMA) from 1 Jan 2012 to 31 March 2012 con­tin­ues to enjoy the floor rate of 4% p.a.. Sav­ings in the 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 aver­age yield of the 10YSGS plus 1%, from 1 Decem­ber 2010 to 30 Novem­ber 2011, works out to be 3.19%. Since 3.19% is lower than the floor rate, 4% p.a. interest rate applies.

Retire­ment Account (RA) con­tin­ues to enjoy 4% p.a from 1 Jan 2012 to 31 Dec 2012. 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. Again, the floor rate of 4% applies to RA.

The floor rate of 4% p.a. for Spe­cial Account, Medis­ave Account and Retire­ment Account is val­id till 31 Dec 2012.

An addi­tion­al 1% interest will con­tin­ue to be paid on the first $60,000 of CPF member’s com­bined bal­ances, with up to $20,000 from the Ordin­ary Account (OA).

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