Singapore’s Central Provident Fund (CPF) provides a safe haven for deciding on a house, health care, and retirement by guaranteeing interest on your saved money. Government measures in 2025 have helped to keep rates constant.
At the end of 2025, the news of this stability is pleasant amidst the changing global rates. The 4% floor rate for key accounts guarantees a steady income without the risk of losing it because of the markets.
How Interest on CPF Works
The Central Provident Fund (CPF) pays interest on a quarterly basis, based on market-linked benchmarks with guaranteed minimum floors. The Ordinary Account (OA) earns a minimum interest rate of 2.5%, while the Special Account, MediSave Account, and Retirement Account (SMRA) earn at least 4%. These interest rates are risk-free and fully backed by the Singapore government, giving members confidence that their savings are protected regardless of market movements.
Rates Remained Unchanged in 2025
Throughout all quarters of 2025, the OA interest rate stayed at the 2.5% floor, while SMRA balances continued to earn 4%. During this period, market yields fell below the guaranteed minimums, which meant the floor rates were fully applied. As a result, CPF members continued to enjoy stable and predictable returns despite wider market fluctuations.
Extension of the 4% Floor
The government has extended the 4% minimum interest floor for SMRA balances until the end of 2026. This extension supports long-term retirement planning, especially as people live longer and need dependable income streams. By maintaining this floor, CPF savings remain a strong foundation for future financial security.
CPF Special Account Changes 2026: New Rules That Reshape Long-Term Retirement Planning Strategies
Interest Bonuses
In addition to base interest rates, CPF members receive extra interest. Members below 55 earn an additional 1% on the first S$60,000 of combined balances, capped at S$20,000 from the OA. Members aged 55 and above receive an extra 2% on the first S$30,000 and an additional 1% on the next S$30,000. With these bonuses, effective interest rates can reach up to 6%.
Importance of These Rates
CPF’s steady and secure interest structure helps savings grow gradually and keep pace with inflation over time. Compounding becomes more powerful as regular contributions accumulate, turning small monthly amounts into meaningful sums for CPF LIFE payouts or healthcare needs in later years.
Current Rates Overview (2025)
| CPF Account Category | Standard Interest Rate (2025) | Additional Interest Benefit | Highest Possible Rate |
|---|---|---|---|
| Ordinary Account (OA) | 2.5% per year | Extra 1% on first S$20,000 for members below 55 | Up to 3.5% |
| Special, MediSave & Retirement Accounts (SMRA) | 4.0% per year | Bonus 1–2% on first S$60,000 depending on age | Up to 6.0% |
| HDB Housing Loan Interest | 2.6% | Calculated as OA rate plus 0.1% | Not Applicable |
Looking to 2026
The 4% interest floor for SMRA balances will remain in place throughout 2026, subject to quarterly reviews. Meanwhile, the OA interest rate continues to be supported by a 2.5% minimum floor, ensuring continued stability for members’ short- and long-term savings.
Tips to Maximize Growth
Members can boost their CPF growth by making voluntary top-ups, which may also provide tax relief while enhancing compounding returns. Those aged 55 and above can consider transferring OA savings to the Retirement Account to enjoy higher interest rates and strengthen retirement income.
Final Overview
In 2025, CPF interest rates delivered steady, safe, and government-backed growth, with the 4% SMRA floor extended into 2026 for continued assurance. Members are encouraged to check their CPF balances, review credited interest, and plan top-ups. Small actions taken today can make a significant difference to financial security in the future.
