Floor interest rate for CPF Special, MediSave and Retirement accounts to remain at 4% for 2026
This extension will provide CPF members with certainty on the returns of their savings amid the falling interest rate environment, says CPF Board.
The Central Provident Fund Board logo seen on a building in Tampines. (File Photo: CNA/Calvin Oh)
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SINGAPORE: The 4 per cent floor interest rate for all Central Provident Fund (CPF) Special, MediSave and Retirement accounts will be extended for another year in 2026.
"This extension of the floor rate will continue to provide CPF members with certainty on the returns of their CPF savings amidst the falling interest rate environment," said the CPF Board and Housing and Development Board (HDB) in a joint news release on Monday (Sep 22).
FOURTH QUARTER
The 4 per cent interest rate for Special, MediSave and Retirement accounts will remain unchanged in the fourth quarter of this year, as the pegged rate remains below the floor rate of 4 per cent.
This interest rate is pegged to the 12-month average yield of 10-year Singapore Government Securities (10YSGS) plus 1 per cent.
The Ordinary Account interest rate will remain unchanged at the floor rate of 2.5 per cent per annum for the fourth quarter of this year, as the pegged rate remains below the floor rate.
Similarly, the concessionary interest rate for HDB housing loans, which is pegged at 0.1 per cent above the OA interest rate, will remain unchanged at 2.6 per cent per annum for the fourth quarter.
EXTRA INTEREST PAID
CPF members will continue to earn extra interest as part of the government’s efforts to boost retirement savings.
For members aged below 55, they will earn an extra 1 per cent interest on the first S$60,000 (US$46,700) of their combined balances, capped at S$20,000 for Ordinary Accounts.
For members aged 55 and above, the government pays an extra 2 per cent interest on the first S$30,000 of their combined balances, capped at S$20,000 for Ordinary Accounts, and an extra 1 per cent on the next S$30,000.
The extra interest earned on the Ordinary Account balances will go into the member’s Special Account or Retirement Account.
Members aged 55 and above who participate in the CPF LIFE scheme will still earn the extra interest on their combined CPF balances. This includes the savings used for CPF LIFE.
On Sep 17, the CPF Board said voluntary top-ups crossed a record S$6.7 billion in the first seven months of the year, after members topped up accounts due to changes in the system.
The sum was spread across 316,000 members who received voluntary top-ups from themselves or their loved ones. It marked a significant increase from the S$4.8 billion worth of top-ups in 2024.
The CPF Board attributed the record top-up amount this year to a one-time surge after the Enhanced Retirement Sum was raised from three times to four times the Basic Retirement Sum.
The Enhanced Retirement Sum is the maximum amount that CPF members can put into their Retirement Accounts to receive payouts. Having more money in a CPF Retirement Account translates to bigger monthly payouts.
