Singapore’s Central Provident Fund (CPF) system remains one of the strongest retirement savings frameworks in the world. To provide stability for members, the government has confirmed that the CPF Interest Rate Floor of 4% will continue for Special, MediSave, and Retirement Accounts (SMRA) until December 31, 2026.
This extension comes at a time when global interest rates are uncertain, ensuring that CPF members can count on steady returns for their long-term savings. With additional bonuses such as extra interest and support for CPF LIFE, members will see their retirement and healthcare funds grow with more security.
Singapore $760 Relief Payment 2025: Dates & Eligibility
Singapore Extends 4% CPF Interest Rate Floor
| Rate of Floor | 4% for SMRA Accounts |
| Validity | Extended until 31st Dec. 2026 |
| OA Rate | 2.5% from Oct–Dec 2025 |
| HDB Loan Rate | 2.6%, pegged to OA rate + 0.1% |
| Extra Interest | Up to 2% more for seniors, 1% for younger members |
Understanding the 4% CPF Interest Rate Floor
The CPF Interest Rate Floor guarantees a minimum return of 4% on SMRA savings. Normally, the interest rate is tied to the average yield of 10-year Singapore Government Securities plus 1%. If this formula produces a rate below 4%, the government steps in and maintains the 4% floor.
This safeguard ensures that CPF members earn consistent returns, even during times of economic uncertainty when market rates might dip.
Why This Matters for Retirement Savings
For many Singaporeans, CPF savings are the backbone of retirement planning. The continued floor rate gives peace of mind by providing:
- Certainty – Members know that their savings won’t earn less than 4%.
- Predictability – Households are able to budget for upcoming expenses more securely.
- Protection – Savings are shielded from global interest rate volatility.
This move particularly benefits long-term planners who rely on steady growth for retirement income and medical needs.
Impact on Special, MediSave, and Retirement Accounts
The CPF accounts covered by the floor include:
- Special Account (SA): Focused on retirement savings.
- MediSave Account (MA): Dedicated to healthcare expenses.
- Retirement Account (RA): Created at age 55 to hold funds for retirement payouts.
All these accounts will continue earning a guaranteed minimum of 4% interest until the end of 2026. For members, this translates into stronger long-term growth in funds earmarked for retirement and medical costs.
Singapore $500 MediSave Bonus 2025: Eligibility and Payout
Ordinary Account and Housing Loan Rates
Although the SMRA accounts take the spotlight, CPF also confirmed rates for other accounts:
- The Ordinary Account (OA) continues at 2.5% per year for October to December 2025.
- The Housing Development Board (HDB) loan rate remains fixed at 2.6%, pegged at 0.1% above the OA rate.
These stable rates mean members planning for housing expenses or servicing HDB loans can budget with certainty.
Additional Interest Benefits for CPF Members
Apart from the guaranteed floor, CPF provides additional interest to boost savings:
- Members under 55: Earn 1% extra on the first $60,000 of combined balances, with up to $20,000 from the OA.
- Members 55 and older: Earn 2% extra on the first $30,000 of combined balances and an additional 1% on the next $30,000.
This extra interest is credited to the SA or RA, significantly enhancing retirement savings.
CPF LIFE and Lifelong Income
Members who join CPF LIFE, Singapore’s lifelong retirement income scheme, also benefit. Even when savings are transferred into CPF LIFE, extra interest continues to apply. This ensures that retirement payouts remain sustainable and grow steadily over time, giving members reliable lifelong income.
Why the CPF Interest Rate Floor Extension Matters
The extension highlights the government’s long-term commitment to financial security for Singaporeans. With inflation and global interest rate swings creating uncertainty, the CPF Interest Rate Floor provides a stable foundation.
It reassures members that their savings will grow at a predictable pace, helping them meet both retirement and healthcare needs without fear of sudden drops in interest earnings.
How Members Can Maximize CPF Growth
To make the most of CPF benefits, members should:
- Top up CPF early: Contributions grow faster with compounding at a guaranteed 4%.
- Leverage extra interest: Families can benefit from additional credited amounts by keeping higher balances.
- Stay informed: Regularly review account statements and updates from the CPF Board.
- Think about making voluntary top-ups: Adding to CPF ensures stronger retirement readiness.
FAQs About Singapore Extends CPF Interest Rate Floor to 2026
It is a guaranteed minimum interest of 4% on Special, MediSave, and Retirement Accounts.
The extension now runs through to 31 December 2026.
No, the OA remains at 2.5% interest per year.
It stays at 2.6%, pegged 0.1% above the OA rate.
Members aged 55 and above earn 2% extra on the first $30,000 and 1% extra on the next $30,000.
The decision to extend the CPF Interest Rate Floor at 4% until December 2026 offers members a stronger safety net for both retirement and healthcare savings. With consistent returns, extra interest for different age groups, and support for CPF LIFE participants, the scheme continues to deliver stable and reliable growth.
For Singaporeans planning their future, this move is more than just a rate guarantee. It reflects a long-term promise of security, dignity, and confidence in the CPF system.
