CPF extends 4% floor rate for Special, MediSave and Retirement Accounts until end-2026

The Central Provident Fund (CPF) Board and the Housing and Development Board (HDB) announced on 22 September 2025 that the 4% floor rate for interest on CPF Special, MediSave and Retirement Account (SMRA) balances will be extended until 31 December 2026.

Authorities said the move aims to provide certainty and steady returns for CPF members, particularly during a period of declining interest rates.

From 1 October to 31 December 2025, the SMRA interest rate will remain at 4%, while the Ordinary Account (OA) will continue to earn 2.5%. The HDB concessionary housing loan rate will also stay at 2.6%.

Interest rates remain above market benchmarks

According to the CPF Board, the SMRA rate is pegged to the 12-month average yield of 10-year Singapore Government Securities (10YSGS) plus 1%. Between August 2024 and July 2025, this computed rate was 2.64%, which is below the guaranteed floor of 4%.

The OA interest rate is linked to the three-month average of major local banks’ interest rates, which stood at 0.45% from May to July 2025. With the OA floor rate set at 2.5%, CPF members continue to earn well above market levels.

The HDB concessionary loan rate, pegged at 0.1% above the OA rate to account for administrative costs, will therefore remain unchanged at 2.6%.

Continued support for long-term retirement savings

The CPF Board said the decision reflects the Government’s commitment to helping members achieve stable, long-term growth in their retirement savings despite fluctuating global economic conditions.

CPF members will also continue to enjoy additional interest on their savings.

For members under 55, an extra 1% interest is paid on the first S$60,000 of combined CPF balances, with up to S$20,000 from the OA eligible for this bonus.

Members aged 55 and above receive higher bonuses:

• The first S$30,000 of combined balances earns an extra 2% interest.

• The next S$30,000 earns an additional 1% interest.
  OA balances eligible for these extra interest payments are capped at S$20,000.

These additional interest payments help older members boost their retirement savings and ensure more predictable income through the CPF Life annuity scheme.

Extra interest channeled to retirement accounts

Extra interest earned on OA balances is automatically transferred to the Special Account or Retirement Account, depending on the member’s age. This ensures that members’ funds benefit from higher compound growth over time and strengthens their long-term financial security.

CPF Life participants aged 55 and above also continue to receive these additional interest payments on balances used to purchase CPF Life, further improving monthly payouts.

Stability amid a low-interest environment

The CPF Board and HDB said the extension of the 4% floor rate underscores the authorities’ commitment to protecting members from the impact of declining market interest rates.

Market yields, including the 10-year Singapore Government Securities rate, have softened in recent months amid global economic uncertainty and monetary easing.

The extended floor rate and continued bonus interest structure aim to safeguard CPF members’ purchasing power and retirement adequacy, especially for those approaching retirement age.