Financial Focus

– From April, members need only to have CPF balances of at least the prevailing Minimum Sum instead of 1.5 times before being allowed to top-up someone else’s account.

– From May, investors must keep at least $30,000 in their Special Account on top of the current minimum $20,000 in Ordinary Account before the excess can be used for investments.

– From June, Medisave withdrawal limit will be raised.

– From August, age restrictions for top-ups recipients will be removed where currently they have to be at least 55 years old.

– By end December, interest rates of the Special, Medisave and Retirement Accounts (SMRA) will be floated and pegged to the average yield of 10-year Singapore Government Securities rates. CPF account holders will earn the floating rate plus 1 percentage point. Had it not been maintained at 4% for 2 years till end 09, the SMRA rate works out to be 3.69% in Feb 09.