4% CPF SMRA Interest Rate Extended to 2010

4% CPF SMRA Interest Rate Extended to 2010

We note that the 4% CPF SMRA interest rate has been extended to the year 2010.

It was long held that the special 4% per annum minimum floor interest rate for CPF Special account, Medisave account and Retirement account would end by 31 December 2009.

We checked and confirmed that the 4% CPF SMRA interest rate has indeed been extended to 2010 when we looked through the CPF website here.

As quoted from CPF site on 11 Sep 2009:

"From 1 January 2008, savings in the Special Account, Medisave Account and Retirement Account (SMRA) is pegged to the 12-month average yield of the 10-year Singapore Government Securities (10YSGS) plus 1%. To help members adjust to the floating SMRA interest rate, a 4% floor for the SMRA rate will be maintained for the first three years (2008 - 2010).

In addition, an extra 1% of interest will be paid on the first $60,000 of a member's combined balances, with up to $20,000 from the OA. The extra interest from the OA will go into the member's Special or Retirement Account to improve his retirement savings.

Under the CPF Act, the Board pays interest at a minimum rate of 2.50% per annum. CPF interest is computed monthly and, compounded and credited annually."


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The Team
Singapore Savings Account Rates.