Singapore Central Provident Fund members will continue earning a minimum 4 per cent return on their Special, MediSave, and Retirement Accounts through the end of 2027, according to a joint statement released on Sept. 22 by the CPF Board and the Housing Board. The policy extension provides guaranteed stability for retirement nest eggs as broader economic conditions and global interest rates remain unpredictable.
CPF Interest Rate Floors Extended Through 2027
The government’s decision locks in the 4 per cent rate floor for the Special, MediSave, and Retirement Accounts, collectively known as SMRA, preventing drops below that threshold. According to the CPF Board, this rate floor remains active because the standard pegged rate sits below 4 per cent. That pegged rate calculates from the 12-month average yield of 10-year Singapore Government Securities plus 1 per cent. Data from the CPF Board website shows that specific 12-month yield averaged 3.06 per cent between August 2025 and July 2026.
Did you know? The 10-year Singapore Government Securities yield serves as the primary benchmark for calculating the baseline return of the Special, MediSave, and Retirement Accounts before the 4 per cent floor is applied.
Ordinary Account and HDB Loan Rates Unchanged
Ordinary Account savings will maintain their 2.5 per cent interest rate from Oct. 1 through Dec. 31, according to official disclosures. The CPF Board notes that this rate also relies on a floor, as the actual pegged rate remains lower. That Ordinary Account benchmark relies on the three-month average interest rates of major local banks, which registered at 0.32 per cent from May to July. Concessionary interest rates for Housing Board loans, which track 0.1 per cent above the Ordinary Account rate, will hold steady at 2.6 per cent for the upcoming quarter.
Extra Interest Tiers for Senior and Younger Members
Account holders continue to qualify for bonus interest payments on their combined balances depending on their age bracket. Members below the age of 55 collect an additional 1 per cent interest on the first $60,000 of their combined balances, with the Ordinary Account portion capped at $20,000. For members aged 55 and older, the government covers an extra 2 per cent interest on the first $30,000 of combined balances—again capped at $20,000 for the Ordinary Account—plus another 1 per cent on the next $30,000. Extra interest generated from Ordinary Account balances automatically flows directly into an individual’s Special or Retirement Account. Furthermore, CPF Life participants aged 55 and above remain eligible for these extra interest bonuses across their combined balances, including funds allocated to CPF Life schemes.
Frequently Asked Questions
What is the minimum interest rate for the Special Account?
The Special Account earns a guaranteed minimum floor rate of 4 per cent, which authorities have extended through the end of 2027.
How is the Ordinary Account interest rate calculated?
The Ordinary Account rate is pegged to the three-month average interest rate of major local banks, subject to a minimum floor of 2.5 per cent.
Do HDB housing loan rates change with the CPF updates?
The concessionary HDB loan rate stays pegged at 0.1 per cent above the Ordinary Account interest rate, keeping it at 2.6 per cent for the upcoming quarter.