CPF Changes from January 2008

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.

CPF Posts

http://www.salary.sg/2007/cpf-change...-january-2008/

There is any Year restriction to withdraw CPF?

Vadiraj, yes. Check out the ever-changing rules at www.cpf.gov.sg