4% interest rate floor for CPF Special, MediSave, Retirement accounts extended till end-2026

SINGAPORE – The 4 per cent rate floor for interest earned on all Central Provident Fund (CPF) Special, MediSave and Retirement Account (SMRA) monies will be extended for another year to end-2026.

This will continue to provide CPF members with certainty on the returns of their CPF savings amid the falling interest rate environment, said the CPF Board (CPFB) and HDB in a joint statement on Sept 22.

From Oct 1 to Dec 31, the interest rates for the following will remain unchanged: SMRA (4 per cent), Ordinary Account (OA) (2.5 per cent) and the concessionary rate for HDB housing loans (2.6 per cent).

This is because the pegged rates for both SMRA and OA are below the respective floor rates of 4 per cent and 2.5 per cent.

The SMRA interest rate is pegged to the 12-month average yield of 10-year Singapore Government Securities plus 1 per cent. According to the CPFB website, the average yield from August 2024 to July 2025 was 2.64 per cent.

The OA interest rate is pegged to the three-month average of the major local banks’ interest rates, which was 0.45 per cent from May to July, according to the CPFB website.

The concessionary interest rate for HDB housing loans is pegged at 0.1 per cent above the OA interest rate to cover the cost of loan administration.

CPF members will also continue to earn extra interest on their CPF savings.

Those aged below 55 will earn an extra 1 per cent interest on the first $60,000 of their combined balances, capped at $20,000 for OA.

Those aged 55 and above will receive an extra 2 per cent interest on the first $30,000 of their combined balances, capped at $20,000 for OA, and an extra 1 per cent on the next $30,000.

The extra interest earned on the OA balances will go into the person’s Special Account or Retirement Account.

Those aged 55 and above participating in CPF Life will still earn extra interest on their combined CPF balances, including the savings used for CPF Life.