CPF Board has announced that the CPF interest rate for Special, Medisave and Retirement accounts (SMRA) will retain the 4% minimum interest rate till end of 2013. It is supposed to end this year but due to the low interest environment now, CPF Board has decided to extend another year.
CPF SMRA was supposed to peg to the 12-month average yield of 10-year Singapore Government Securities plus 1 per cent since 1 Jan 2008. If this formula was to be use how, the interest rate for SMRA will only be 2.55%!
So good news to all Singaporean.