Government extends 4% interest rate floor on Special, MediSave and Retirement Account monies until 31 December 2024

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One-year extension of minimum 4% interest rate floor on Special, MediSave and Retirement Account monies from 1 January 2024 to 31 December 2024

 

 

CPF Interest Rates from 1 October 2023 to 31 December 2023

 

Ordinary Account

Special and MediSave Account

Retirement Account

Interest Rate

2.5%

4.04%

4%

CPF members below 55 years old

  • Members earn an extra 1% interest on the first $60,000 of their combined CPF balances

 

CPF members aged 55 and above

  • Members earn an extra 2% interest on the first $30,000 of their combined CPF balances, and an extra 1% on the next $30,000

 

HDB Concessionary Interest Rate from 1 October 2023 to 31 December 2023

  • Remains unchanged at 2.6%

 

Note: All interest rates are quoted on a per annum basis.


The Government has extended the 4% interest rate floor for interest earned on all Special, MediSave and Retirement Account (SMRA) monies for another year from 1 January 2024 to 31 December 2024. This provides certainty for CPF members amidst the uncertain interest rate environment.

 

Since 1 January 2008, CPF interest rates have been pegged to market instruments of comparable risk and duration to ensure that members receive fair and reasonable returns. The SMRA rates will continue to be reviewed regularly and CPF members will earn the higher of the floor or pegged rate.

 

 

CPF Interest Rates for Ordinary, Special and MediSave Account Monies from 1 October 2023 to 31 December 2023

 

With the Special and MediSave Account (SMA) pegged rate exceeding the floor rate of 4%, savings in the SMA will earn 4.04% in the fourth quarter of 2023. This is due to the increase in the 12-month average yield of 10-year Singapore Government Securities (10YSGS), which the SMA interest rate is pegged to.

 

The Ordinary Account (OA) interest rate will remain unchanged at 2.5% for the same period, as the pegged OA rate remains below the floor rate of 2.5%. The Government is watching the interest rate environment closely to ensure that the CPF interest rate pegs remain relevant in the prevailing operating environment while taking into consideration the longer-term outlook.

 

Correspondingly, the concessionary interest rate for HDB housing loans, which is pegged at 0.1% above the OA interest rate, will remain unchanged at 2.6% per annum from 1 October 2023 to 31 December 2023.

 

As part of the Government’s efforts to enhance the retirement savings for CPF members, CPF members will continue to earn extra interest on their CPF savings. For members below 55 years old, they will earn extra 1% interest on the first $60,000 of their combined balances (capped at $20,000 for OA). For members aged 55 and above, the Government pays an extra 2% interest on the first $30,000 of their combined balances (capped at $20,000 for OA), and an extra 1% on the next $30,000.

 

The extra interest received on the OA will go into the member’s Special Account (SA) or Retirement Account (RA). If a member is above 55 years old and participates in the CPF LIFE scheme, the extra interest will still be earned on his or her combined balances, which includes the savings used for CPF LIFE.

 

 

CPF Interest Rate for Retirement Account

 

The RA interest rate will be maintained at 4% per annum from 1 January 2023 to 31 December 2023, as announced on 29 November 2022.

 

 

Public Enquiries

 

For more information on CPF interest rates and their computation, please visit CPF Interest Rates.