This is in line with the government's announcement made in September 2011 to maintain the 4 per cent per annum floor rate for interest earned on all monies in the Special, Medisave and Retirement accounts until 31 December 2012.
Savings in the Special and Medisave accounts (SMA) currently earn either 4 per cent or the 12-month average yield of 10-year Singapore Government Securities (SGS) plus 1 per cent, whichever is higher.
The interest rate on SMA savings is adjusted quarterly, based on interest rates on 10-year SGS over a preceding 12-month period.
From 1 March 2011 to 29 February 2012, the average yield of the 10-year SGS plus 1 per cent works out to be 2.93 per cent.
Therefore, CPF will maintain the SMA interest rate payable to CPF members at the current floor of 4 per cent from April to June 2012.
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