The Government is maintaining stability for CPF members once more. As interest rates have been falling this year many people worried that their CPF savings might generate lower returns particularly for retirement purposes. However the Ministry of Finance has decided to extend the 4% interest rate floor on Special MediSave and Retirement Account funds until 31 December 2026. This decision provides members with additional security especially for those across Singapore who have been struggling with increasing food & transport expenses. Having at least one portion of your savings earn a guaranteed return offers some reassurance.
Updated Overview: Singapore’s Latest CPF Interest Rates for Oct–Dec 2025
| Account / Scheme | Interest Rate (Oct–Dec 2025) | Important Update |
|---|---|---|
| Ordinary Account (OA) | 2.5% | Market-pegged rate remains below the threshold, so the 2.5% payout stays unchanged. |
| Special, MediSave & Retirement Accounts (SMRA) | 4% | The 4% floor has been extended through 2026 to ensure stable long-term earnings. |
| HDB Concessionary Loan | 2.6% | No revision announced; the concessionary housing loan rate continues at 2.6%. |
How the Extended 4% Interest Floor Strengthens Member Savings
Let’s be real. Watching return rates go up and down creates stress for most people. The 4% floor has given Singaporeans a steady foundation for years now. Keeping it through 2026 means your healthcare and retirement savings keep growing at rates that beat what most markets offer today. The official calculation uses the 12-month average yield of 10-year Singapore Government Securities plus 1%. That formula has dropped below 4% recently. Without the floor in place members would be earning less right now. This extension works like protection against dropping interest rates. For older Singaporeans planning their retirement years this kind of stability has become more important than ever.
Stable OA Interest & Unchanged HDB Loan Rate: What Members Should Know
The OA interest rate remains at 2.5% because the pegged formula continues to be lower than the floor rate. This means the HDB concessionary loan interest rate also stays at 2.6% since it is always set at OA plus 0.1%. For those servicing an HDB loan this means your monthly payments will stay the same without any unexpected increases. In a year when everyday expenses keep rising this stability provides some financial relief.
Additional CPF Interest Bonuses: A Helpful Boost Across All Age Groups
The extra interest scheme stays the same. It may seem modest at first but the benefits grow significantly over time. For Members Below 55 You will continue to receive an additional 1% on the first $60,000 of your combined balances with a cap of $20,000 for OA. This additional interest is credited directly to your Special Account to help grow your retirement savings. For Members Aged 55 and Above You receive enhanced benefits: Extra 2% on the first $30000 of combined balances with a cap of $20,000 for OA Extra 1% on the next $30,000 If you are enrolled in CPF LIFE you will still earn extra interest on your combined balances including the portion allocated for CPF LIFE payouts. For many seniors facing higher medical expenses or increased grocery prices at FairPrice these additional interest earnings provide some financial relief.
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Overall Impact: What CPF Members Can Expect in 2025–2026
The situation in Singapore has been quite unpredictable lately. Transport costs keep changing and utilities are getting more expensive. Even the prices at hawker centers seem to go up every few months. However CPF interest rates have stayed reliable and steady. The Government has decided to extend the 4% SMRA floor rate. This decision shows that they want to make retirement more stable for everyone. Younger CPF members will benefit because their savings will grow at a good rate over time. Older members will also gain from this because they can count on more reliable financial support when they need it most during their retirement years.
