CPF's SMRA interest rate to go up to 4.08% in Q3
The CPF interest rate for the Special, MediSave and Retirement Accounts (SMRA) will be 4.08 per cent from July 1 to Sept 30.
SMRA interest rate for this current quarter is at 4.05 per cent.
In an announcement on May 29, the Central Provident Fund explained that the change is due to an increase in the 12-month average yield of 10-year Singapore Government Securities (10YSGS), which the SMRA interest rate is pegged to plus 1 per cent.
CPF interest Rate for the Ordinary Account (OA) will remain unchanged at 2.5 per cent for the next quarter as the pegged rate remains below the 2.5 per cent floor rate.
The concessionary interest rate for HDB housing loans, which is pegged at 0.1 per cent above the OA interest rate, will remain unchanged at 2.6 per cent for Q3.
As part of the Government’s efforts to boost retirement savings, CPF members will earn extra interest on their CPF savings.
Those below 55 years old will earn an extra 1 per cent interest on the first $60,000 of their combined balances (capped at $20,000 for OA).
Members aged 55 and above will earn an extra 2 per cent interest on the first $30,000 of their combined balances (capped at $20,000 for OA) and an extra 1 per cent on the subsequent $30,000.
The extra interest earned on the OA balances will go into the member’s Special Account or Retirement Account.
If a member is above 55 years old and joins CPF Life, the extra interest will be earned on the combined CPF balances, which includes the savings used for CPF Life.
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