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Extension of CPF Minimum Floor Rate
Currently, the interest rate for the Special Account, Medisave Account and Retirement Account (SMRA) is pegged to the 12-month average yield of the 10-year Singapore Government Security (10YSGS) plus 1%.
The government had earlier guaranteed a floor of 4% on this interest till the end of this year. Two days ago, Manpower Minister Gan Kim Yong said this is in light of global economic conditions and exceptionally low interest rate environment, the minimum of 4 per cent interest rate will be extended for another year till end of 2010.
Without this minimum, the interest rate for the fourth quarter of 2009 would have been 3.4% p.a.