Singapore 6% Savings Interest Rate Update
Singapore Savings Account Rates blogspot dot com is the online presence where we share the Singapore 6% Savings Interest Rate Update in Singapore.
Team members at Singapore Savings Account Rates are motivated to help you earn more interest income from this Singapore 6% Savings Interest Rate Update in 2016.
Team members at Singapore Savings Account Rates are motivated to help you earn more interest income from this Singapore 6% Savings Interest Rate Update in 2016.
2016 Singapore 6% Savings Interest Rate Updates are quoted for personal use only. Always check interest rates with the respective banks and/or fixed income investment companies before you invest your money.
Singapore 6% Savings Interest Rate Update is here in the paragraphs listed below.
CPF Special, Retirement and Medisave Accounts earn 6% per annum with effect from 1 January 2016 to 31 December 2016 under the following conditions:
- age 55 and above
- interest earned on first $30,000 of combined balances
Details of 6% Savings Interest Rate Update is here:
Interest Rate for Special and Medisave Account
The interest rate on Special and Medisave Account (SMA) monies is adjusted quarterly. SMA monies earn either the current floor interest rate of 4% per annum or the 12-month average yield of 10-year Singapore Government Securities (10YSGS) plus 1%, whichever is higher.
The SMA interest rate will be maintained at 4% per annum from 1 January 2016 to 31 March 2016, as the computed rate of 3.39% is lower than the current floor interest rate.
Interest Rate for Retirement Account
Retirement Account (RA) monies credited in 2016 will be invested in newly-issued Special Singapore Government Securities (SSGS) which will earn a fixed coupon rate equal to either the 12-month average yield of the 10YSGS plus 1% computed for the year, or the current floor rate of 4% per annum, whichever is higher.
The average yield of the 10YSGS plus 1% from November 2014 to October 2015 is 3.39% per annum. As this is below the current floor rate of 4% per annum, new SSGS issued in the year of 2016 will pay a fixed coupon of 4%.
The interest rate earned by RA monies is the weighted average interest rate of the entire portfolio of these SSGS, which is adjusted in January each year to take into account the coupon rates payable by the new SSGS issuance.
The RA interest rate will be maintained at 4% per annum from 1 January 2016 to 31 December 2016.
Extra Interest
An extra 1% interest per annum is currently paid on the first $60,000 of a member’s combined balances (with up to $20,000 from OA).
CPF members aged 55 and above will also earn an additional 1% extra interest on the first $30,000 of their combined balances (with up to $20,000 from the OA) from January 2016.
Source: CPF Board Singapore
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The Team