CENTRAL Provident Fund (CPF) members will continue to receive interest of 4 per cent a year on their Special and Medisave Accounts (SMA) savings from April 1 to June 30.

Since Jan 1 2008, savings in the SMA have been invested in Special Government Securities (SSGS) which earn an interest rate pegged to the 12-month average yield of 10-year Singapore Government Securities (10YSGS) plus 1 per cent, adjusted quarterly.

As announced previously, the Government will maintain the 4 per cent per annum minimum rate for interest earned on all Special and Medisave Accounts (SMA) monies and Retirement Account (RA) monies until Dec 31. After this, interest rates on all CPF account monies will be subject to a minimum rate of 2.5 per cent a year. For the period March 1 2009 to Feb 28, the 12-month average yield of the 10YSGS plus 1 per cent worked out to be 3.44 per cent.

This article was first published in The Straits Times.

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