Singapore’s Central Provident Fund (CPF) offers a secure way to plan for housing expenses and healthcare needs while building retirement savings through guaranteed interest on deposits. The government implemented policies in 2025 that maintained stable interest rates across CPF accounts. This rate stability brings welcome relief as 2025 draws to a close during a period of fluctuating international interest rates. The guaranteed 4% minimum rate for primary accounts ensures members receive consistent returns on their savings without exposure to market volatility or potential losses.
How Interest on CPF Works
The CPF pays interest every three months based on specific benchmarks with guaranteed minimum rates. The Ordinary Account earns at least 2.5% while the Special MediSave and Retirement Accounts earn a minimum of 4%. These rates are risk-free and backed by the government.
Rates Remained Unchanged in 2025
The OA kept its rate steady at 2.5% during every quarter of 2025. Meanwhile SMRA held a higher rate of 4%. Market yields dropped beneath their minimum threshold levels which meant the guarantee provisions came into full effect.
Extension of the 4% Floor
The government has extended the 4% minimum rate for SMRA savings accounts through the end of 2026. This measure supports long-term retirement planning as people continue to live longer & must prepare for extended retirement periods.
Interest Bonuses
Besides the basic rates you will receive additional interest. If you are under 55 years old you get an extra 1% on the first S$60000 with a cap of S$20,000 from the Ordinary Account. Pensioners above 55 years receive an extra 2% on the first S$30,000 & an additional 1% on the next S$30,000. These bonuses can push your effective rates up to 6%.
Importance of These Rates
Safe & steady growth will eventually overcome inflation. The power of compounding becomes increasingly significant as consistent contributions accumulate into substantial amounts that can be used for CPF LIFE payouts or healthcare expenses. Regular deposits grow stronger over time through compound interest. This means your money earns returns on both the original amount and the accumulated gains. While inflation reduces purchasing power each year disciplined saving combined with reasonable investment returns can outpace it.
Current Rates Overview (2025)
| Account Type | Base Rate (2025) | Extra Interest Details | Effective Max with Bonus |
|---|---|---|---|
| Ordinary Account (OA) | 2.5% | +1% on first S$20,000 (under 55) | Up to 3.5% |
| Special/MediSave/Retirement (SMRA) | 4% | +1-2% on first S$60,000 (age-based) | Up to 6% |
| HDB Housing Loan Rate | 2.6% | Pegged to OA +0.1% | N/A |
Looking to 2026
The 4% SMRA floor remains in effect throughout the entire year and undergoes quarterly reviews. Meanwhile the OA rate continues to maintain its 2.5% floor.
Tips to Maximize Growth
Make voluntary contributions to receive tax benefits and increase your compound returns. If you are 55 years old or above you can transfer funds from your Ordinary Account to your Retirement Account for improved interest rates. During 2025 the CPF interest rates in Singapore provided consistent and secure growth. The 4% minimum rate will remain in place through 2026 to maintain financial stability. Log into your CPF account today to review your current balances and view your interest earnings or consider making additional contributions. The actions you take today will create significant results over time.
