Singapore sets one-year extension of minimum interest rate on Special, MediSave and Retirement Account monies until 31 December 2025

With the Special, MediSave and Retirement Accounts pegged rate exceeding the floor rate of 4%, savings in the accounts will earn 4.14% from 1 October to 31 December 2024. 

The Singapore government announced on 20 September 2024 (Friday) that there will be a one-year extension of minimum 4% interest rate on Special, MediSave and Retirement Account (SMRA) monies from 1 January to 31 December 2025. 

According to a press release by the Central Provident Fund (CPF) Board and Housing and Development Board (HDB), ⁠this extension of the floor rate will continue to provide CPF members a sense of certainty on the returns of their CPF savings amidst the volatile interest rate environment. 

Interest rate for CPF Special, MediSave and Retirement Accounts

With the SMRA interest rate surpassing the 4% floor rate, savings in these accounts will earn 4.14% from 1 October to 31 December 2024. 

This SMRA rate is based on the 12-month average yield of 10-year Singapore Government Securities (10YSGS), plus an additional 1%.

Interest rate for CPF Ordinary Account and HDB Concessionary Interest Rate

The Ordinary Account (OA) interest rate will remain unchanged at 2.5% from 1 October to 31 December 2024, as the OA-pegged rate continues to stay below the 2.5% floor rate. 

Similarly, the concessionary interest rate for HDB housing loans, pegged at 0.1% above the OA interest rate, will also stay unchanged at 2.6% during the same period.

Extra interest paid on CPF balances

To help boost CPF members' retirement savings, the Government will continue providing extra interest on CPF balances.

• Members below age 55 will earn an extra 1% interest on the first S$60,000 of their combined balances, with a S$20,000 cap for the OA. 
• Members aged 55 and above will receive an extra 2% on the first S$30,000 of their combined balances (capped at S$20,000 for OA) and an additional 1% on the next S$30,000.

The extra interest earned on OA balances will be credited to the member’s Special Account or Retirement Account. For those aged 55 and above who are part of CPF LIFE, the extra interest will still apply to their combined CPF balances, including savings used for CPF LIFE.

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READ MORE: FAQs: What to do when your CPF Special Account closes after you've turned 55, effective 2025 

Lead image / HRO