CPF interest rate to increase! This is a piece of good news for Singaporeans! From 1 July to 30 September 2023, the interest rate for CPF Special and MediSave account will increase from 4.0 per cent per annum to 4.01 per cent per annum. The interest rate for CPF Ordinary account remain unchanged at 2.5 per cent per annum.
How come there was a sudden increase in interest for the Special and MediSave account? The 12-month average yield of 10-year Singapore Government Securities (10YSGS) increased. If you did not know, savings in the Special and MediSave accounts earn the 12-month average yield of 10-year Singapore Government Securities (10YSGS) plus 1%. The interest rate is subjected to the current floor interest rate of 4% per annum and reviewed quarterly. Savings in the Ordinary Account earn the 3-month average of major local banks’ interest rates....
