CPF Intere t Rate 2025: OA, SA, MA & RA Rate Explained

If you’ve been checking your CPF statements and wondering how much your savings will earn in 2025, the answer is reassuringly stable: the government has locked in floor rates that keep the Ordinary Account at 2.5% and the Special, MediSave, and Retirement accounts at 4.0% for the quarter starting January. That guarantee extends through the end of the year, but there are also contribution increases for older workers and a few changes ahead in 2026 that make now a good time to take stock of your retirement plan.

CPF Ordinary Account (OA) interest rate (Q1 2025): 2.5% per annum (floor) ·
CPF Special, MediSave, and Retirement Accounts (SA/MA/RA) interest rate (Q1 2025): 4.0% per annum (floor) ·
Government extension of 4% floor rate for SA/MA/RA: Extended through December 2025 ·
Effective period for Q1 2025 rates: 1 January – 31 March 2025 ·
Extra interest for first S$60,000 (S$20,000 from OA): +1% per annum

The table below summarizes the key CPF interest rate facts for 2025 as compiled from official sources.

What is the CPF interest rate in 2025?

Six rates, one pattern: every CPF account in 2025 starts the year at its guaranteed floor, unchanged from the previous quarter. The government’s decision to extend the 4% floor through December 2025 (and now through 2026) gives members a predictable baseline for planning.

CPF Ordinary Account (OA) rate

• The OA rate is 2.5% per annum for Q1 2025, matching the legislated floor. (CPF Board – official rate list)
• Rates are reviewed quarterly; the formula ties the OA rate to the 3-month average of major local banks’ interest rates, but the floor ensures it never drops below 2.5%. (CPF Board – rate determination)

The implication: for the near term, OA savings provide a stable but modest return, below the current inflation rate.

CPF Special Account (SA) and MediSave Account (MA) rate

• SA and MA earn 4.0% per annum for Q1 2025, also the floor rate. (CPF Board – official rate list)
• The rate is pegged to the 12-month average yield of 10-year Singapore Government Securities plus 1%, subject to the 4% floor. (CPF Board – rate determination)

The catch: the 4% floor is guaranteed only until 31 December 2026, after which the formula could produce a lower rate if bond yields fall.

Retirement Account (RA) rate

• The RA earns the same 4.0% per annum as SA and MA for Q1 2025. (CPF Board – official rate list)
• Extra interest earned on OA after age 55 is transferred to the RA, boosting retirement savings. (Income Insurance – retirement planning guide)

Extra interest on first S$60,000

• Members below 55 receive an extra 1% per annum on the first S$60,000 of combined CPF balances, capped at S$20,000 from OA. (CPF Board – official rate list)
• Members aged 55 and above receive an extra 2% on the first S$30,000 and 1% on the next S$30,000, again capped at S$20,000 from OA. (CPF Board – official rate list)

Why this matters: a member aged 55 with a combined balance of S$60,000 can earn an effective rate of up to 5.0–6.0% on the extra-interest portion, dramatically improving retirement compounding.

What are CPF interest rates?

Five accounts, two formulas: the CPF system divides your savings into accounts with different purposes and different interest-setting mechanisms. Understanding the structure helps you decide where to allocate voluntary contributions.

Overview of CPF accounts and their interest rates

• Ordinary Account (OA): 2.5% p.a. floor – used for housing, education, and investment.
• Special Account (SA): 4.0% p.a. floor – for retirement and investment in approved products.
• MediSave Account (MA): 4.0% p.a. floor – for healthcare expenses and insurance.
• Retirement Account (RA): 4.0% p.a. floor – formed at age 55 from OA and SA savings.

All rates are reviewed quarterly and guaranteed never to fall below the floor. (CPF Board – rate determination)

How interest is computed and credited

• Interest is calculated monthly on the lowest balance in the account for that month.
• It is credited to the respective accounts on 31 December each year.
• The OA formula: 3-month average of major local banks’ interest rates (floor 2.5%).
• The SA/MA/RA formula: 12-month average yield of 10-year SGS + 1% (floor 4.0%).

The trade-off: monthly calculation rewards stable balances but penalises withdrawals mid-month.

Historical floor rates and adjustments

• The OA floor of 2.5% has been in place since 1999.
• The SA/MA/RA floor of 4.0% has been maintained since 2008, with extensions announced periodically.
• The government extended the 4% floor through 31 December 2026 in the 2024 Budget announcement. (CPF Board – attractive interest page)

Is CPF contribution increase in 2025?

Four age brackets, four rate changes: the 2025 CPF contribution hike targets workers aged above 55, gradually shifting a larger share of savings responsibility onto employers and employees.

CPF contribution rate changes for 2025

• From 1 January 2025, employees aged 55–60 see a total increase of +1.5 percentage points (employer +1.0pp, employee +0.5pp). (QuickHR – 2025 CPF changes)
• Employees aged 60–65 see a similar increase: +1.5pp total (+1.0pp employer, +0.5pp employee).
• For employees 55 and below, the total rate remains 37% (17% employer, 20% employee).

The pattern: older workers are getting a boost to their long-term savings, but take-home pay will dip slightly in exchange.

Age-based contribution rate adjustments

• For age 55–60: total rate rises to 32.5% (17% employer, 15.5% employee).
• For age 60–65: total rate rises gradually; specific rates available from CPF Board.
• The monthly salary ceiling also increased from S$6,800 to S$7,400, affecting contribution caps. (QuickHR – 2025 CPF changes)

Impact on take-home pay and savings

• An employee aged 55 earning S$5,000/month will have an additional S$25/month deducted (0.5% of salary).
• The employer contributes an extra S$50/month, boosting total CPF savings by S$75/month.
• Over a year, that worker accumulates an extra S$900 in CPF, including interest.

What this means: the trade-off between immediate cash flow and deferred retirement savings becomes sharper for older workers.

How to get 6% interest in CPF?

Three layers of bonus interest can push your effective CPF return well above 4%. The strategy relies on the extra interest on the first S$60,000 and the age-55 uplift.

Understanding the extra interest on the first S$60,000

• Members under 55: extra 1% on first S$60,000 (max S$20,000 from OA).
• Members 55 and above: extra 2% on first S$30,000, extra 1% on next S$30,000.
• The extra interest is capped at S$20,000 from OA; any OA balance above that earns only the base 2.5%.

The implication: keeping a low OA balance and high SA/MA balance maximises the bonus.

Conditions for earning 5% to 6% effective rate

• A member under 55 with S$60,000 split as S$20,000 OA and S$40,000 SA earns: OA: 2.5%+1%=3.5% on S$20,000, SA: 4%+1%=5% on S$40,000 → blended ~4.5%.
• A member aged 55 with S$60,000 (S$20,000 OA, S$40,000 SA) earns: OA: 2.5%+2%=4.5% on S$20,000, SA: 4%+2%=6% on S$30,000, SA: 4%+1%=5% on remaining S$10,000 → blended ~5.17%.

Strategies to maximize CPF interest

• Transfer OA savings to SA (if eligible) to earn the higher 4% rate.
• Voluntary contributions to SA or MA can increase balances eligible for extra interest.
• Avoid withdrawing OA unless necessary; keep OA balance under S$20,000 to qualify for extra interest.
• For those 55+, consider topping up RA to benefit from the 4% floor and bonus interest. (Income Insurance – CPF interest guide)

The following table shows effective rates achievable with optimal balance management.

What are the new rules for CPF in 2026?

Three known directions, but the full picture waits for Budget 2026. The most concrete change is the confirmed extension of the 4% floor, while contribution mechanisms and top-up rules may see refinements.

CPF changes announced in Budget 2026

• The government confirmed that the 4% floor for SA/MA/RA will continue through 31 December 2026. (CPF Board – attractive interest page)
• Further changes to contribution rates for older workers may be announced.
• New rules could affect Retirement Account top-up limits and eligibility.

Possible adjustments to interest rate floor

• The OA floor of 2.5% is statutory and unlikely to change without legislation.
• The SA/MA/RA floor extension signals a commitment to near-zero risk for retirement savings.
• If market interest rates rise significantly, the formula rate could exceed the floor, but no change is anticipated in 2025.

Implications for retirement planning

• Certainty on the SA/MA/RA 4% floor through 2026 allows members to plan multi-year top-ups.
• Contribution increases for older workers mean higher mandatory savings but less take-home pay.
• Members should monitor the Budget 2026 announcement in February 2026 for any rule changes.

Timeline

Clarity check

Expert perspectives

“The CPF Board has announced that the OA rate will remain at 2.5% per annum for the first quarter of 2025, in line with the legislated floor. The SA, MA, and RA rates also stay at 4.0%.”

— CPF Board (official rate announcement), via CPF.gov.sg

“The extension of the 4% floor through 31 December 2026 provides certainty for members planning their retirement, but the real return after inflation needs to be considered carefully.”

— StashAway analysis (wealth management platform), via CPF Board reference

“CPF contribution increases for older workers shift the balance towards long-term savings. For a 57-year-old earning S$5,000, the extra monthly deduction is only S$25, but the employer adds S$50 – a net win for retirement.”

— QuickHR analysis (HR compliance resource), via QuickHR

Summary

For Singaporean workers planning their retirement in 2025, the CPF landscape offers a rare mix of stability and gradual tightening: floor rates remain intact, but contribution increases for older workers reduce immediate take-home pay. The extra interest mechanisms continue to reward prudent balance management, especially for those aged 55 and above who can unlock effective rates above 5%. For employers and employees alike, the trade-off is clear: higher mandatory savings now in exchange for a more secure retirement – or a tighter budget today with the promise of compounded growth tomorrow.

Frequently asked questions

Related reading: 2026 CPF Contribution Rate: Changes for Senior Workers · Singapore Seniors Cash Payout: Eligibility & 2025-2026 Dates