2009 Best Un-Fixed Deposits Interest Rates

2009 Best Un-Fixed Deposits Interest Rates, Singapore

The best un-fixed deposits interest rates of all savings, fixed deposits, SGS treasury bills, money markets and bond market account rates available in Singapore as at 10 Feb 2009 in Singapore is the CPF SMRA Account.

These un-fixed deposits interest rates will likely stay as the highest as well as the best rates for the months of March, April, May and June 2009.

The Central Provident Fund's (CPF) un-fixed Special, Medical and Retirement Accounts (SMRA) are paying 5% per annum, after factoring the extra 1% interest rate paid on the first $60,000 of a member’s combined balances, with up to $20,000 from the Ordinary Account (OA). By themselves, the un-fixed SMRA accounts earn 4% interest rate. The un-fixed Ordinary Account (OA) earns 2.5% interest rate.

This is the best un-fixed deposits interest rates that anyone can find in Singapore when comparing the un-fixed payouts from savings accounts, fixed deposits accounts, SGS treasury bills, money markets and other legitimate safe, secure fixed and un-fixed interest-paying financial accounts.

The CPF Board has declared that un-fixed interest rate for Ordinary Account (OA) will be 2.50% interest per annum for members’ CPF savings in their OA from 1 April 2009 to 30 June 2009. The computed un-fixed CPF interest rate derived from the major local banks’ interest rates for the three-month period, 1 November 2008 to 31 January 2009, worked out to be 0.74 % per annum. However, the higher rate of 2.50% will be paid as the CPF Act provides for a minimum CPF interest rate of 2.50% per annum.

Un-fixed interest rate for Special, Medisave & Retirement Accounts (SMRA) for April to June 2009 will be announced in March 2009 after the average yield of the 10 year Singapore Government Securities (SGS) is computed. To help members adjust to this floating rate, the 4% floor for the SMRA rate will be maintained till 31 December 2009.

CPF Board has also declared an extra 1% interest will be paid on the first $60,000 of a member’s combined balances, with up to $20,000 from the Ordinary Account (OA). The extra un-fixed interest from the OA will go into the member’s Special or Retirement Account to enhance his / her retirement savings.

Note that I keep using the term 'un-fixed' deposits because the rates will fluctuate once the guaranteed floor limit on CPF interest rates expires. So get ready for the 'un-fixed' CPF interest rate reality soon.

Source = CPF Board Singapore