SINGAPORE (Sept 21): The Central Provident Fund (CPF) Board has announced an extension of the 4% floor rate on interest for all Special, Medisave and Retirement accounts (SMRA) for another year to Dec 31, 2017, in light of the low interest rate environment. The 4% floor rate has been in place since Jan 1, 2008, when savings in the SMRA were invested in Special Singapore Government Securities, with the government committed to providing this floor rate for two years to December 2009, to help cope with the transition. For CPF members above 55 years of age, an extra 1% interest can be earned on their first S$30,000 in combined balances, including savings used for CPF LIFE, netting them up to 6% interest rate on their retirement accounts from Oct 1, 2016 to Dec 31, 2016. The extra interest will go into the member’s Special or Retirement Account. The Ordinary Account interest rate will be maintained at 2.5% from Oct 1, 2016 to Dec 31, 2016, while the concessionary interest rate for HDB mortgage loans will remain unchanged at 2.6% in the same time period.

Source: The Edge Markets September 21, 2016 08:26 UTC