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The Central Provident Fund (CPF) Board has announced that the interest rate for the Special Account (SA), MediSave Account (MA), and Retirement Account (RA) will remain at 4% per annum for the period from July 1 to September 30, 2025.
This decision ensures consistent returns for CPF members during the third quarter of 2025.
Detailed Breakdown of CPF Interest Rates for Q3 2025
| CPF Account | Interest Rate (per annum) | Period |
|---|---|---|
| Ordinary Account (OA) | 2.5% | Jul 1 – Sep 30, 2025 |
| Special Account (SA) | 4.0% | Jul 1 – Sep 30, 2025 |
| MediSave Account (MA) | 4.0% | Jul 1 – Sep 30, 2025 |
| Retirement Account (RA) | 4.0% | Jul 1 – Sep 30, 2025 |
| HDB Housing Loan Rate | 2.6% | Jul 1 – Sep 30, 2025 |
Understanding the Interest Rate Mechanism
Special, MediSave, and Retirement Accounts (SMRA)
The SMRA interest rate is pegged to the 12-month average yield of the 10-year Singapore Government Securities (10YSGS) plus 1%, subject to a minimum floor rate of 4% per annum.
As the computed rate based on the 10YSGS remains below the floor rate, the interest for Q3 2025 is maintained at 4% .
Ordinary Account (OA)
The OA interest rate is determined by the 3-month average of major local banks’ interest rates, subject to a legislated minimum of 2.5% per annum.
For Q3 2025, the OA interest rate remains at 2.5%, as the computed rate is below the minimum threshold .
Additional Interest for CPF Members
To enhance retirement savings, CPF members receive additional interest on their Central Provident Fund balances:
- Members below 55 years old:
- Earn an extra 1% interest on the first $60,000 of their combined Central Provident Fund balances, capped at $20,000 for the OA.
- Members aged 55 and above:
- Earn an extra 2% interest on the first $30,000 of their combined Central Provident Fund balances, capped at $20,000 for the OA.
- Earn an extra 1% interest on the next $30,000 of their combined balances.
The additional interest earned on the OA will be credited to the member’s SA or RA to further boost retirement savings .
Government’s Commitment to Stable Returns
The government has extended the 4% floor rate for SMRA interest until December 31, 2025, providing CPF members with certainty on their returns amidst a volatile interest rate environment .
Implications for CPF Members
Maintaining the 4% interest rate for SMRA accounts ensures that Central Provident Fund members continue to receive stable and attractive returns on their savings.
This stability is crucial for long-term financial planning, especially for retirement and healthcare needs.
The Central Provident Fund (CPF) Board has announced that the interest rate for the Special, MediSave, and Retirement Accounts (SMRA) will remain at 4% per annum for the third quarter of 2025, from July 1 to September 30.
This decision ensures stable and attractive returns for Central Provident Fund members, supporting their long-term financial planning.
The government has extended the 4% floor rate for SMRA interest until December 31, 2025, providing certainty amidst a volatile interest rate environment.
FAQs
Why is the SMRA interest rate maintained at 4% for Q3 2025?
The SMRA interest rate is pegged to the 12-month average yield of the 10-year Singapore Government Securities plus 1%. As this computed rate remains below the floor rate, the interest is maintained at 4% .
How does the additional interest benefit CPF members?
The additional interest provides Central Provident Fund members with higher returns on their savings, enhancing their retirement and healthcare funds. Members below 55 earn an extra 1% on the first $60,000 of their combined balances, while those 55 and above earn up to an extra 2% on the first $30,000 and 1% on the next $30,000 .
Will the 4% floor rate for SMRA interest continue beyond 2025?
As of now, the government has extended the 4% floor rate until December 31, 2025. Any further extensions will be announced based on economic conditions and policy considerations .