SINGAPORE: The Central Provident Fund’s Special and MediSave Accounts’ ( SMA ) interest rate will rise to 4. The CPF Board and the Housing Board ( HDB ) announced on Thursday( Sept 21 ) that the rate would be 4 % annually in the fourth quarter of this year.
After the price increased to 4, this is the second for raise in as many quarters. Since the floor rate of 4 % was established in 2008, there has been a 1 % increase for the third quarter of this year.
The SMA curiosity price is pegged to the 12-month average yield of 10-year Singapore Government Securities, which is why this is the case, according to a joint media release from the CPF Board and HDB.
At 2, the interest rate on the ordinary account ( OA ) won’t change. The pegged OA rate, the regular interest rate for major local banks over a three-month period, is still below the floor level of 2, so 5 % for the same time period. 5 %.
The CPF Board and HDB stated that the government is keeping a close eye on the interest rate environment in order to make sure the price pegs are still relevant in the current working environment while taking the long-term view into account.
Members of the CPF under the age of 55 will continue to earn an additional 1 % interest on the first$ 60,000( US$ 43,900 ) of their combined balances, which is capped at$ 20,000 for the OA.
The government pays an additional 2 % interest on the first$ 30,000 of the combined balances of CPF members 55 and older, with a cap of$ 20,000 for the OA, and an extra 1 % on any subsequent S$ 30,000.
According to the CPF Board and HDB, any additional interest earned on the OA will be deposited into the member’s Special Account ( SA ) or Retirement Account.
The additional interest will still be earned on a member’s combined accounts, which includes the saving used for CPF LIFE, if he or she is older than 55 years old and enrolls in the program. “”
The HDB cover loan concessionary interest rate, which is estimated to be 0. The interest rate, which is 1 % above the OA, won’t change at 2. 6 % annually for the same time period.
From October 1 to December 31, these interest charges will be in effect.
The RA interest rate for this year will remain at 4 % annually.
The government has extended the 4 % interest rate floor for interest earned on all Special, MediSave, and Retirement Account money for another year from Jan 1 to Dec 31 next year, the CPF Board and HDB also announced on Thursday.
They claimed that this gives CPF people confidence in the face of a volatile interest rate environment.
To ensure that people receive fair and reasonable returns, Pension interest rates have been pegged to business instruments of similar danger and period since January 1, 2008.
CPF members will receive the higher of the floor or pegged rate because the( Special, MediSave, and Retirement Account ) rates will continue to be regularly reviewed. “”