Interest rate on CPF Special, MediSave and Retirement accounts dips to 4% for first quarter of 2025
SINGAPORE - The interest rate on the Central Provident Fund (CPF) Special, MediSave and Retirement Accounts (SMRA) will dip to 4 per cent from January to March 2025, from 4.14 per cent this current quarter.
Savings in these accounts will earn the floor rate of 4 per cent a year in the first quarter of 2025, as the pegged rate has fallen below the floor rate, according to a joint statement by the Central Provident Fund Board, Housing Board and Ministry of Health on Dec 11.
“This is due to a decrease in the 12-month average yield of 10-year Singapore Government Securities, which the SMRA interest rate is pegged to,” it added.
The SMRA interest rate is calculated by adding 1 per cent to that average yield.
According to the CPF website, the average yield from November 2023 to October 2024 is 2.99 per cent. That yield was used to compute the SMRA interest rate for January to March 2025.
The resulting figure is 3.99 per cent, below the floor rate.
The interest rates for the Ordinary Account, and for HDB housing loans, remain unchanged, at 2.5 per cent and 2.6 per cent respectively.
Also, the Basic Healthcare Sum has been set at $75,500 in 2025 for those below the age of 65 – an increase from the cap of $71,500 in 2024.
This sum is the estimated savings needed for basic subsidised healthcare needs in old age. It is adjusted yearly for CPF members below 65 to keep pace with the growth in MediSave use.
The sum will be fixed at $75,500 for those who turn 65 in 2025, and remain unchanged for them thereafter, according to the statement.
CPF members below 55 years old will continue to earn an extra 1 per cent interest on the first $60,000 of their combined account balances, capped at $20,000 for the Ordinary Account.
Those aged 55 and above will continue to earn an extra 2 per cent interest on the first $30,000 of their combined balances, capped at $20,000 for the Ordinary Account, and an extra 1 per cent on the next $30,000. The extra interest applies to those who have used their savings to participate in CPF Life.
CPF Life provides monthly payouts to CPF members for as long as they live, from the age of 65.
The extra interest earned on the Ordinary Account will go into the member’s Special or Retirement accounts.
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