KEY HIGHLIGHTS
- Singapore extends the 4% CPF interest floor for SMRA accounts until end-2026.
- OA interest stays at 2.5%, keeping HDB loan rates steady at 2.6%.
- Extra CPF interest remains unchanged, giving members stronger long-term returns.
If you’ve been worrying about falling interest rates, here’s one bit of stability from the Government. The 4% interest floor for the Special, MediSave, and Retirement Accounts (SMRA) will carry on until 31 December 2026, giving everyone—young workers to retirees—some certainty about their CPF growth.
At the same time, the Ordinary Account (OA) will continue to earn 2.5%, since the pegged rate is still below that level. For most of us paying for a flat in Jurong, Bedok, or Woodlands, this also means your HDB loan interest stays fixed at 2.6%. No surprises there.
CPF Interest Floors (2025–2026)
| CPF Account Type | Interest Rate | Validity Period | Notes |
|---|---|---|---|
| Special / MediSave / Retirement (SMRA) | 4% | Oct–Dec 2025, extended through 2026 | Pegged to 10Y SGS + 1%, but floor applied |
| Ordinary Account (OA) | 2.5% | Oct–Dec 2025 | Pegged rate below floor |
| HDB Concessionary Loan | 2.6% | Oct–Dec 2025 | Always 0.1% higher than OA rate |
| Extra Interest (Below 55) | 1% on first $60,000 | Ongoing | OA portion capped at $20,000 |
| Extra Interest (55 & above) | Up to 2% | Ongoing | First $30k gets 2%, next $30k gets 1% |
Why the SMRA 4% Floor Matters
The SMRA rate is normally tied to the 12-month average yield of 10-year Singapore Government Securities (10Y SGS) plus 1%. But with yields lower lately, the pegged rate would have dipped below 4%. Instead of letting that happen, the Government kept the floor.
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That means your long-term healthcare and retirement savings still grow at a decent rate, even as global interest rates soften.
What’s Happening to OA Interest?
The OA rate stays at 2.5% because the pegged value is still below the minimum rate. This affects anyone saving for housing or paying off an HDB loan.
And since the HDB concessionary loan always sits 0.1% above OA, the home loan rate stays fixed at 2.6% until 31 December 2025. So if you’re budgeting for the next few months, there’s no sudden jump to worry about.
Extra Interest: How Much You Actually Get
Here’s the thing—many residents forget that CPF gives bonus interest on top of the base rates. These extra amounts can quietly boost your savings over time.
For Members Below 55
- 1% extra interest on the first $60,000 of combined balances
- Only $20,000 from OA counts toward this limit
For Members 55 and Above
- 2% extra on the first $30,000
- 1% extra on the next $30,000
- OA portion counted is capped at $20,000
If you’re on CPF LIFE, don’t worry—the extra interest still applies to the savings used for your CPF LIFE payouts.
We’ve put all the key Singapore government payouts for 2025–2026 on one page – GST Voucher, Assurance Package, Silver Support, and SG60 Vouchers.
Check payouts & eligibility overviewWhy This Extension Comes at the Right Time
From Clementi to Pasir Ris, everyone has been feeling the pinch of higher hawker prices, pricier groceries, and rising medical bills. Keeping SMRA at 4% helps protect retirement and healthcare savings at a moment when every dollar counts.
It’s not a windfall, but it’s stability—and in this climate, stability matters.
FAQs
1. Why is CPF extending the 4% floor?
Because the market-based rate is currently lower. Keeping the floor protects members during a low-rate environment.
2. Will OA interest go up anytime soon?
Not unless the pegged rate rises above 2.5%. For now, it stays unchanged.
3. Does this affect HDB loan repayments?
Yes—your rate stays at 2.6%, so your monthly instalments remain the same.
4. Do CPF LIFE members still get extra interest?
Yes, the extra interest applies to your combined balances, including those used for CPF LIFE.
5. Is the extra interest automatic?
Completely. You don’t need to apply for anything.
