SINGAPORE: The 4 per cent floor rate for interest on Central Provident Fund (CPF) Special, MediSave and Retirement Account (SMRA) monies will be extended until 31 December 2026.
The CPF Board and Housing and Development Board (HDB) announced the extension on 22 September, highlighting its role in providing certainty for members amid falling interest rate environments.
From 1 October to 31 December 2025, SMRA interest will remain at 4 per cent, the Ordinary Account (OA) at 2.5 per cent, and the concessionary housing loan rate at 2.6 per cent.
According to the CPF Board’s website, the pegged SMRA rate—based on the 12-month average yield of 10-year Singapore Government Securities plus 1 per cent—stood at 2.64 per cent between August 2024 and July 2025.
This is well below the floor of 4 per cent.
The OA interest rate is tied to the three-month average interest rates of major local banks, which was 0.45 per cent from May to July 2025. The OA floor of 2.5 per cent therefore continues to apply.
The HDB concessionary loan rate remains pegged at 0.1 per cent above the OA rate to cover administrative costs, keeping it at 2.6 per cent.
CPF members will also continue to benefit from extra interest incentives.
Those under 55 will receive an additional 1 per cent on the first S$60,000 of their combined balances, capped at S$20,000 for the OA.
For members aged 55 and above, the first S$30,000 of combined balances earns an extra 2 per cent interest, with OA balances capped at S$20,000. A further 1 per cent is applied to the next S$30,000.
Extra interest earned on OA balances is directed into the Special Account or Retirement Account, depending on the member’s age group.
CPF Life participants aged 55 and above will continue to benefit from these extra interest payments, including funds already used for CPF Life.
This extension ensures members receive stable returns on their long-term retirement savings despite prevailing low market yields.
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