To help boost retirement savings, the Government pays extra interest on the first $60,000 of your combined CPF balances, which is capped at $20,000 for Ordinary Account (OA). Extra interest is structured so that all CPF members benefit, and members with lower balances benefit more. The amount of extra interest paid to you would depend on your combined CPF balances and age.
If you are below 55 years old, you will earn an extra interest of 1% per annum on the first $60,000 of your combined CPF balances (capped at $20,000 for OA). The extra interest earned on your Special Account (SA) and MediSave Account (MA) balances will go to the respective accounts, while the extra interest earned on your OA balances will go into your SA to enhance your retirement savings.
If you are 55 years old and above, you will earn an extra interest of 2% per annum on the first $30,000 and 1% per annum on the next $30,000 of your combined CPF balances (capped at $20,000 for OA). The extra interest earned on your Retirement Account (RA), SA and MA balances will go to the respective accounts, while the extra interest earned on your OA balances will go into your RA to enhance your retirement savings. If you have joined the CPF LIFE scheme, the extra interest earned will be paid into your RA or accumulated with the interest earned on the CPF LIFE premiums of all CPF LIFE members.
How is my combined CPF balance computed?
Your accounts are used to compute your combined CPF balances in the following order:
- 1st: Retirement Account (RA), including any CPF LIFE premium balance
- 2nd: OA, with a cap of $20,000*
- 3rd: Special Account (SA)
- 4th: MediSave Account (MA)
*A cap of $20,000 from OA is imposed because OA savings are short-term in nature and can be withdrawn on demand for a few purposes such as housing and education.
