In the second quarter of 2024, the interest rate for Central Provident Fund ( CPF ) Special, MediSave, and Retirement accounts will decrease to 4.05 per cent annually.
This is the first interest rate drop for Exclusive and MediSave transactions to be down from 4.08 per share in the previous quarter.
According to a news release on Tuesday ( Mar 12 ), CPF and the Housing Development Board ( HDB) stated in a press release that the Special, MediSave, and Retirement Account ( SMRA ) pegged rate “exceeds the floor rate of 4 %” from April 1 through June 1.  ,
The joint release stated that the SMRA interest rate is correlated with the 12-month average yield of 10-year Singapore Government Securities (SGS ) plus 1 %.
The government made the announcement last year that the Retirement Account (RA ) interest rate nail may be based on the Special and MediSave transactions and would be calculated monthly rather than annually starting on January 1 this time.
The Ordinary Account ( OA ) interest rate will remain unchanged at 2.5 percent for the same period as its pegged rate is still below the floor rate of 2.5 percent.
In line with this, the concessionary interest level for HDB cover money, which is pegged at 0.1 % above the Op interest rate, will remain constant for the same time, at 2.6 % per year.
The state” will maintain to ensure that the Pension interest rate pegs remain relevant in the current working environment while taking into account the longer-term outlook,” said CPF and HDB.  ,