From 1 Mar 1986 to 30 June 1999, the formula to compute the calculated rate is 50% fixed deposit rate and 50% savings rate of the average of the big 4 local banks over the preceding relevant 6 months.
From 1 July 1999 to present, the formula to compute the calculated rate is 80% fixed deposit rate and 20% savings rate of the average of the major local banks over the preceding relevant 3 months.
From 1 Jan 2008, savings in the Special, Medisave and Retirement Accounts is pegged to the 12-month average yield of the 10-year Singapore Government Securities (10YSGS) plus 1%.
Current fixed deposit rates are 0.21% and 10 year SGS rates is 1.93%. If you look at the document, the government have been giving us more than the benchmark They are following
CPF in their eyes is meant to be risk free savings and not for retirement. Hope this address the narrative.
[CPF Rates]
Kyith is the Owner and Sole Writer behind Investment Moats. Readers tune in to Investment Moats to learn and build stronger, firmer wealth foundations, how to have a Passive investment strategy, know more about investing in REITs and the nuts and bolts of Active Investing.
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Kyith worked as an IT operations engineer from 2004 to 2019. Currently, he works as a Senior Solutions Specialist in Fee-only Wealth Advisory firm Providend.
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You can read more about Kyith here.
- Being Wealthy is a Feeling and Based Less on Math. But it Actually Means A Wealthy Person will have an Absurdly Low Safe Withdrawal Rate. - February 3, 2023
- Singapore Savings Bonds SSB March 2023 – Ten Year Yield Goes Up, One Year Goes Down (SBMAR23 GX23030A) - February 1, 2023
- Should You Retire at 30 Years Old with $1 Million or Retire at 40 Years Old with $10 Million (As a Singaporean)? - January 29, 2023
Hahahha
Thursday 5th of June 2014
Hahahha risk free savings is moot if you don't get to see your savings because of minimum sum.
Kyith
Thursday 5th of June 2014
hi, are you sure you won't see your savings?