CPF extends 4% rate to Special, Medisave and Retirement accounts for another year

SINGAPORE (Sept 21): The Central Provident Fund (CPF) Board has announced an extension of the 4% floor rate on interest for all Special, Medisave and Retirement accounts (SMRA) for another year to Dec 31 2017 in light of the low interest rate environment.

The 4% floor rate has been in place since Jan 1 2008 when savings in the SMRA were invested in Special Singapore Government Securities, with the government committed to providing this floor rate for two years to December 2009 to help cope with the transition. Subsequently, this rate has been extended due to global economic conditions and exceptionally low interest rates.

The interest rates for Ordinary Account can earn interest rates of up to 3.5% per annum, while Special and Medisave accounts can earn up to 5% per annum, with extra 1% interest for the first $60,000 of combined balances from Oct 1 2016 to Dec 31 2016. This is in line with government efforts to enhance retirement savings.

---

Related Stories

• Budget 2023: CPF adjustments for gig workers and older workers
• Two charged for attempt to defraud CPF
• CPF top-ups increase 34% in first three quarters of 2020

---