CPF Changes from January 2008
December 21st, 2007
Starting from 1 January 2008, your CPF balances will earn more interests.
Interest Pegging for Special Account, Medisave Account and Retirement Account (SMRA)
The yield will be pegged to 1% + the 12-month average yield of the 10-year Singapore Government Security (10YSGS), subject to a minimum of 4% for 2 years. The yield data is available at the MAS SGS site.
Based on the new formula, CPF Board calculated that your SMRA accounts will still earn 4% for Q1 2008. Effectively no change here, at least for now. But note that you may get higher interest for the first 2 years, and possibly lower interest after that.
Extra 1% interest
You will earn an additional 1% interest on the first $60k of your combined CPF balances, with up to $20k from your Ordinary Account.
Example: If you have $30k in Ordinary Account and $30k in Special Account (let’s ignore other accounts), you will be getting the extra 1% interest on only $50k due to the cap of $20k on the Ordinary Account.
Note: Your SMRA balances that form part of the combined $60k will also get the additional 1%. In other words, that portion of your SMRA balances will earn 5% interest.
Other Changes
For those who are turning 55, the Medisave Required Amount will be $14k from 1 January. For details on this and other CPF changes, please see this page in the CPF site.
Vadiraj Says:
January 30th, 2008 at 11:33 pm
There is any Year restriction to withdraw CPF?
admin Says:
February 3rd, 2008 at 9:39 am
Vadiraj, yes. Check out the ever-changing rules at http://www.cpf.gov.sg