Surprising fact: as of 1 July 2025, the Ordinary Account offers 2.5% per annum while other CPF accounts sit at 4.0% — a gap that shapes long‑term planning for many Singaporeans.
We’ll walk you through what this means for your CPF balances and retirement savings in plain language. The OA’s figure is pegged to a short-term blend of bank deposit and savings benchmarks, but it stays at a legislated floor to protect your nest egg.
Simple, monthly crediting and tax‑exempt treatment make CPF returns more effective over time. You will see where the OA sits among the four cpf accounts and why extra interest on combined balances matters as salary ceilings rise through 2026.
If you want personal guidance tailored to your property and retirement plan, Whatsapp us for a discovery session.
Key Takeaways
- The ordinary account interest rate is set at 2.5% per annum as a protective floor.
- Other cpf accounts (SA/MA/RA) currently pay 4.0% with quarterly reviews.
- Extra interest on combined balances boosts retirement savings at life stages.
- Interest is credited monthly and is tax‑exempt for better net returns.
- Learn how bank-linked calculations affect your CPF by reading how interest works on a savings.
Start here: A present-day snapshot of CPF interest rates in Singapore
Here’s a clear snapshot of current CPF returns so you can see how your savings grow today.
Current setting: the OA stands at 2.5% per annum while the Special and MediSave sit at 4.0% per annum from 1 July to 30 September 2025. The retirement account follows the same peg and is also at 4.0% in Q1 2025.
The higher figures apply because SA/MA/RA reference the 12-month average yield of the 10-year Singapore Government Securities plus 1%. That calculation produced about 3.99%, so the 4% floor applies.
OA’s market peg was much lower (0.45% for Aug–Oct 2024), so the legislated 2.5% floor remains. All CPF accounts are reviewed quarterly and interest is credited monthly and is tax‑exempt.
- Extra interest applies to the first $60,000 of combined CPF balances, with age-based tiers that boost retirement savings.
If you want a quick, personal walk‑through on how these figures affect property financing or retirement, Whatsapp us for a discovery session.
ordinary account interest rate
Let’s unpack the formula that links your OA to major local banks so you can plan with confidence.
How the peg is calculated
The OA’s pegged figure equals the 3‑month average of major local banks’ fixed deposit (80%) and savings (20%) benchmarks. This blend reflects funds that are both liquid and often kept for years.
Review cadence and the legislated floor
The figure is reviewed quarterly and is protected by a legislated minimum of 2.5 per annum. When the average major local measurement fell to 0.45% (Aug–Oct 2024), members received the 2.5 per floor instead.
Extra interest and the $20,000 cap
Extra interest applies to the first $60,000 of combined CPF balances. The boost from the OA is capped at $20,000. Any extra earned on OA is credited to SA if you are below 55, or to RA if you are 55 and above.
“The quarterly peg and floor aim to protect savings when banks interest and banks interest rates fall.”
- We explain the 80/20 weighting so you see why OA often hits the floor when local banks yields slide.
- Practical implication: OA stability helps with predictable mortgage planning tied to the OA figure.
If you’d like a tailored breakdown of your OA allocation versus other options, Whatsapp us for a discovery session.
CPF interest rates compared: OA vs Special, MediSave, and Retirement Accounts
A side-by-side look shows which CPF pockets deliver higher long-term returns and why.
SA and MA pegging
The special account and the medisave account track the 12-month average yield of the 10-year Singapore Government Securities plus 1% and are floored at 4.0% per annum for 1 July–30 September 2025.
RA alignment
The retirement account now follows the same methodology and is computed quarterly. This alignment gives you clearer predictability when planning top-ups or transfers.
Age-based extra interest tiers
Government extra interest applies to the first $60,000 of combined CPF balances.
- Below 55: up to about 5% in boosted earnings on eligible tiers.
- 55 and above: up to 6% on the first $30,000 and 5% on the next $30,000.
“Floors and quarterly reviews help smooth returns when market yields shift.”
| CPF pocket | Method | Floor (per annum) | Extra interest |
|---|---|---|---|
| Special account | 12-month average yield 10-year SGS + 1% | 4.0% | Part of first $60,000 |
| MediSave | 12-month average yield 10-year SGS + 1% | 4.0% | Part of first $60,000 |
| Retirement account | Aligned; reviewed quarterly | 4.0% | First $60,000 tiers (age-based) |
Why this matters: with these frameworks, you can weigh keeping funds in longer-term pockets for higher secure returns versus holding cash in the OA for housing needs. The reviewed quarterly cadence means small shifts in yield 10-year Singapore averages can change outcomes, so plan top-ups with timing in mind.
Historical trend and 2025 outlook for CPF interest rates
A look back at decades of policy shows why CPF returns have stayed steady through market swings. We explain the floors, the market drivers, and what this means for 2025.
Long‑term anchors
Since 1999, the OA floor has been fixed at 2.5 per annum. The SMRA (SA/MA/RA) floor has held at 4% since 2008 and is extended through 31 December 2025.
When the OA peg fell to 0.45% for Aug–Oct 2024, the floor protected members. The SA/MA peg (Nov 2023–Oct 2024) used the 12-month average yield on the 10‑year SGS plus 1% (about 3.99%), so the 4% floor applied.
What moves these figures
- OA follows the average major local bank benchmarks for deposits and savings.
- SA/MA/RA track the 12‑month average yield of the 10‑year Singapore Government Securities plus 1%.
- Broader cycles—T‑bills and banks interest rates—feed through with a lag.
“Floors smooth volatility: pegs move with markets, but statutory minimums protect long-term returns.”
2025 outlook: Unless local banks and the yield 10-year singapore climb and stay higher, cpf interest rates will likely remain at current floors. For homeowners, note the HDB concessionary figure stays at 2.6%, easing budgeting for loans.
Strategies to maximize your CPF interest and retirement savings
Targeted actions now can boost long‑term CPF savings. We focus on simple, practical tactics you can use today to grow your cpf savings and protect retirement savings.
Leverage extra interest: prioritise the first $60,000 combined CPF balances
Below age 55, you earn an extra 1% on the first $60,000 combined. Those 55 and above get 2% on the first $30,000 and 1% on the next $30,000.
Tip: top balances into the right pockets so the extra interest first applies. Extra credit from OA flows into SA or RA, boosting retirement savings faster.
Voluntary top‑ups timing: why topping up in January helps
Contributing early in the year gives you more months of compounding. A January top‑up accrues monthly credits across the year, increasing interest earned vs a year‑end deposit.
Salary ceiling increases and OA accumulation
As salary ceilings rise toward $8,000 by 1 January 2026, ordinary payroll CPF contributions grow. That means faster accumulation in OA and SA at today’s per annum cpf interest.
Considering OA investments and T‑bills when banks interest is low
When banks interest is weak, low‑risk T‑bills or diversified funds can be sensible uses of excess OA funds. Keep enough liquidity for mortgage servicing while positioning surplus to earn higher long‑term returns.
“Prioritise the first $60,000 combined balances to capture the extra lift that compounds into retirement.”
- Sequence top‑ups to reach the 60,000 combined threshold efficiently.
- Use January top‑ups to maximise monthly credits and extra interest earned.
- Balance liquidity needs with longer‑term cpf savings goals.
If you want a customised optimisation roadmap for cpf savings and investments, Whatsapp us for a discovery session.
Practical calculations: ordinary account, extra interest, and combined CPF balances
We present step‑by‑step sample calculations so you can check how extra interest first 60,000 combined is allocated and how the capped 20,000 ordinary account affects outcomes.
Below 55 — worked example
Scenario: OA $40,000; SA $10,000; MA $10,000. Base yields are 2.5 per annum on OA and 4.0 per annum on SA/MA.
Calculation: The system applies extra interest first across combined cpf balances up to the first 60,000 combined. However, the capped 20,000 ordinary account limits how much of OA counts for extra interest.
- Extra eligible amount = $40,000 total eligible (OA $20,000 cap + SA $10,000 + MA $10,000) = $40,000.
- Extra uplift = 1% on that $40,000, credited monthly and tax‑exempt, with OA’s extra portion moved into SA to boost retirement savings.
55 and above — worked example
Scenario: RA $10,000; OA $54,000; SA $10,000; MA $10,000. Base yields: OA 2.5 per annum, SA/MA/RA 4.0 per annum.
How it splits:
- The first 30,000 of the first 60,000 combined receives an extra 2% (RA $10,000 + OA $20,000 due to the capped 20,000 ordinary account).
- The next 30,000 receives an extra 1% (SA $10,000 + MA $10,000 + remaining OA does not add because of the cap).
Monthly crediting and tax treatment
Interest earned is credited each month. That monthly compounding raises effective yield across the year.
All CPF interest earned is tax‑exempt, which improves net returns compared with many taxable alternatives. Document month‑end balances and plan top‑ups early to capture more monthly compounding per annum.
“Sequence matters: the system counts RA, then OA (capped), then SA and MA when applying extra interest first 60,000 combined.”
| Scenario | Eligible first 60,000 | Extra uplift | Where extra is credited |
|---|---|---|---|
| Below 55 (example) | $40,000 (OA capped at $20,000) | +1% on $40,000 | Extra from OA credited to SA |
| 55+ (example) | First $30,000 at 2%; next $20,000 at 1% (OA cap applies) | +2% on first $30,000; +1% on next $20,000 | Extra credited to RA/SA per rules |
| Common mechanics | Monthly compounding on balances | Tax‑exempt interest earned | Use month‑end snapshots to verify |
Quick rules of thumb:
- Check the 20,000 ordinary account cap — it often limits extra interest first 60,000 combined.
- Top up early in the year to capture more months of monthly crediting.
- Track combined cpf balances and sequence (RA → capped OA → SA → MA) to estimate extra interest earned.
If you want a personalised computation using your exact balances and goals, Whatsapp us for a discovery session.
Conclusion
This summary ties the technical details to practical choices you can make today for stronger retirement savings.
CPF floors — OA at 2.5% and SMRA at 4% (extended to 31 Dec 2025) — keep your core savings protected. The OA peg reflects benchmarks from major local banks, while SA/MA/RA track the 12-month average yield of the 10-year Singapore Government Securities plus 1%.
Extra interest on the first $60,000 of combined balances, monthly crediting and tax-exempt treatment all boost long-term outcomes. These cpf accounts and their quarterly reviews let you plan with clarity as local banks and the broader market move.
If you want clarity on your next step—especially around property cash flow and retirement income—Whatsapp us for a discovery session.
FAQ
What is the current CPF ordinary account interest rate and related rates?
As of now, the CPF ordinary portion earns 2.5% per annum. Special, MediSave and Retirement balances are credited at 4.0% per annum. These figures are reviewed quarterly and form the baseline for how your retirement savings grow.
How is the OA rate determined?
The OA benchmark is set using a weighted 3‑month average of major local banks’ deposits — 80% from fixed deposits and 20% from savings yields. The methodology ties your CPF returns to prevailing bank returns while protecting a legislated minimum of 2.5% per year.
How often are CPF rates reviewed and is there a minimum guaranteed?
Rates are reviewed every quarter. A legislated floor guarantees at least 2.5% p.a. for the ordinary portion and 4.0% p.a. for special-type balances through specified policy periods, providing predictable downside protection.
What extra interest does CPF provide on combined balances?
CPF awards additional interest on the first ,000 of combined CPF balances to boost savings. The extra is applied on top of the base credits, with a ,000 cap for funds in the ordinary portion counting toward that bonus.
How are SA and MediSave rates set compared with OA?
Special and MediSave rates are pegged to a 12‑month average yield of the 10‑year Singapore Government Securities (10Y SGS), plus 1%. There’s a 4% floor, so these balances benefit from both market linkage and a minimum guaranteed return.
How does the Retirement Account (RA) receive its credits?
The RA is computed quarterly and uses the same 10Y SGS + 1% methodology as SA/MA. This links RA returns to longer‑term government yields while maintaining a stable, predictable crediting approach.
Are there age-based extra interest tiers for CPF savings?
Yes. For members below 55, the extra structure is lower. For those 55 and above, enhanced tiers apply: up to 6% on the first ,000 and 5% on the next ,000 of combined balances, subject to caps and the standard allocation rules.
What has been the long‑term trend and the 2025 outlook for CPF returns?
Since 1999, policy has preserved a minimum of 2.5% for the ordinary portion and 4% for special-type balances. Through 2025, those floors have been maintained. Movements in bank yields and the 10‑year SGS average drive adjustments, so we watch rate cycles and government bond yields for future direction.
What factors cause CPF credits to move up or down?
Three primary drivers: average yields at major local banks, the 12‑month average yield on 10‑year Singapore Government Securities, and broader market cycles. Policy floors dampen downside but the linkage ensures some responsiveness to market conditions.
How can I maximise the extra interest on the first ,000 combined CPF balances?
Prioritise keeping balances within the first ,000 threshold — especially the ,000 cap for the ordinary portion — to gain the extra bonus. Consider voluntary top‑ups into Special or Retirement accounts and time them early in the year to earn a full year’s crediting.
Does topping up at certain times yield better returns?
Yes. Voluntary top‑ups made early in the year, such as January, capture more months of credited interest and can slightly increase the annual interest earned. This is useful when you want to maximise compounded growth within policy and contribution limits.
How do salary ceiling changes affect accumulation in the OA?
When salary ceilings rise, more of your mandatory contributions can flow into the ordinary portion, increasing the amount eligible for OA credits. That raises the importance of managing how much sits in the OA versus Special/RA to optimise returns and retirement planning.
Should I consider investing OA funds or using Treasury bills when bank yields are low?
When bank yields are depressed, exploring approved CPF investments or short‑term instruments like Singapore T‑bills (outside CPF) can be an option for surplus cash. Keep in mind CPF funds have protected floors and tax‑exempt credits, so weigh risk, liquidity and preservation of capital before moving funds.
Can you show simple examples of how credits work below age 55?
Example: if your OA balance is ,000 and the OA base is 2.5% with an extra 1% on the first ,000 combined, the first ,000 in the OA earns the base plus applicable extra up to caps. Interest is calculated monthly and credited tax‑exempt to your CPF accounts.
What changes for those aged 55 and above in practical terms?
After 55, enhanced tiers boost the effective return on the first ,000: typically around 6% on the first ,000 and 5% on the next ,000 (subject to policy caps). This rearrangement aims to strengthen retirement savings as you near payout eligibility.
How and when is CPF interest credited and is it taxable?
Interest is calculated monthly and credited to your CPF accounts at the end of each month. Interest earned in CPF is tax‑exempt, which effectively increases your after‑tax yield compared with many taxable investments.
Where can I find the source figures for 10‑year SGS yields and banks’ average returns?
Official statistics come from the Monetary Authority of Singapore (MAS) and the Singapore Government Securities reports. Major local banks publish deposit and savings product yields; the CPF Board and MAS often summarise the averages used in CPF calculations.
