KEY HIGHLIGHTS
- Your first S$20,000 in CPF OA earns up to 3.5% or 4.5% in Singapore
- Extra interest is real money — but it goes into SA or RA, not OA
- Simple CPF rule that quietly boosts long-term retirement savings
The first S$20,000 inside your CPF Ordinary Account earns more than you think — thanks to CPF’s extra interest scheme that many people still overlook.
This isn’t a promo.
It’s a standing CPF rule that’s been around for years, and it quietly compounds in the background.
CPF OA First S$20,000 Interest Rate (2026)
| Age Group | OA Base Rate | Extra Interest | Effective Return on First S$20k | Where Extra Interest Goes |
|---|---|---|---|---|
| Below 55 | 2.5% | +1.0% | 3.5% p.a. | Special Account (SA) |
| 55 & above | 2.5% | +2.0% | 4.5% p.a. | Retirement Account (RA) |
The Standard CPF OA Rate (Q1 2026)
CPF Ordinary Account pays a base interest of 2.5% p.a.
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This rate is reviewed quarterly, but honestly speaking, 2.5% has been rock steady for years.
No lock-ins.
No application needed.
Your OA balance just earns it automatically.
Where the Extra Interest Comes From
This is the part most people miss.
CPF gives extra interest on your combined CPF balances — OA, SA, and MA together.
But there’s a cap.
Only up to S$20,000 can come from your OA.
If You’re Below 55
You get:
- +1% p.a. on the first S$60,000 of combined CPF balances
- Maximum S$20,000 can be from OA
So your first S$20,000 in OA effectively earns 3.5% p.a.
Important detail many people don’t realise:
- The extra 1% does NOT stay in OA
- It is credited into your Special Account (SA)
This is CPF quietly nudging you to grow retirement savings faster.
If You’re 55 and Above
Even better.
You receive:
- +2% p.a. on the first S$30,000
- +1% p.a. on the next S$30,000
- Still capped at S$20,000 from OA
So for that first S$20k in OA:
2.5% + 2% = 4.5% p.a.
The extra interest is credited into your Retirement Account (RA).
Why This Matters More Than You Think
That extra interest is:
- Risk-free
- Paid monthly
- Channelled into SA or RA, which already earn higher long-term rates
Over 20–30 years, this compounds quietly but powerfully.
For most Singaporeans, this is one of the safest “returns” you’ll ever get —
no need to buy anything, no need to apply, no need to stress.
Should You Keep S$20,000 in CPF OA?
For most Singaporeans, yes.
Why it makes sense:
- You keep liquidity for housing
- You still enjoy enhanced interest
- Extra interest strengthens retirement savings automatically
No need to overthink.
Beyond S$20,000, the decision becomes more personal — housing plans, investment options, age, and risk comfort all matter.
Frequently Asked Questions
Does the extra interest stay in my CPF OA?
No.
The extra interest is credited into SA (below 55) or RA (55 and above), not left in OA.
Do I need to apply for the extra interest?
No action required.
CPF credits it automatically every month as long as you qualify.
Is the 2.5% OA interest rate guaranteed?
It’s reviewed quarterly, but 2.5% has been the long-term policy floor for many years.
