2012 Best Singapore Special Savings Account Rates
Welcome to 2012.
The 2012 best Singapore Special savings account rates are provided by the nation's number 1 savings bank (also known as Our Government).
Yes, we are talking about the Central Provident Fund Board's savings account. It offers the 2012 best Singapore Special savings account rates. Much higher savings account interest rates than any local bank or foreign bank in Singapore has offered in the past years.
CPF members will continue to enjoy a risk-free interest rate of 4% on their Special and Medisave Accounts (SMA) from 1 January 2012 to 31 March 2012, and on their Retirement Account from 1 January 2012 to 31 December 2012.
This is in line with the Government’s announcement made in September 2011 to maintain the 4% p.a. floor rate for interest earned on all SMA monies and Retirement Account (RA) monies until 31 December 2012.
Interest Rate for SMA monies
Savings in the SMA currently earn either 4% or the 12-month average yield of 10-year Singapore Government Securities (10YSGS) plus 1%, whichever is the higher. The interest rate on SMA savings is adjusted quarterly, based on interest rates on 10YSGS over a preceding 12-month period.
The average yield of the 10YSGS plus 1%, from 1 December 2010 to 30 November 2011, works out to be 3.19%. Accordingly, the SMA interest rate payable to CPF members from 1 January 2012 to 31 March 2012 will be maintained at the current floor of 4%.
Interest rate on RA monies
New RA savings are invested in SSGS which earn a fixed coupon equal to either the 12-month average yield of the 10YSGS plus 1% at the point of issuance, or 4%, whichever is the higher, adjusted yearly.
Given the low 10YSGS yield, new RA savings will earn a fixed coupon of 4% (floor rate).
The interest rate to be credited to the RA is the weighted average interest rate of the entire portfolio of these SSGS, and adjusted yearly in January. The weighted average interest of the entire portfolio of these SSGS is 4% at the moment, so the interest rate payable to CPF members on their RA balances from 1 January 2012 to 31 December 2012 will be 4%.
Additional Interest of 1%
An additional 1% interest will continue to be paid on the first $60,000 of a member’s combined balances, with up to $20,000 from the Ordinary Account (OA).
The additional interest received on the OA will go into the member’s SA or RA to enhance his retirement savings.
If the member is above 55 years old and participates in the LIFE scheme, the additional 1% interest will also be payable on his annuity premium, less annuity payouts already made. The additional interest earned on the member’s LIFE annuity monies will be paid into his RA.
We hope you discover bank account rates of interest to you. Keep reading
Singapore Savings Account Rates, for new and the best financial rates information about selected savings deposit accounts in Singapore.
The Team
