If you have been concerned about declining interest rates, the Government is offering some reassurance. The 4% interest floor for the Special MediSave and Retirement Accounts will remain in place until 31 December 2026. This provides everyone from young workers to retirees with some predictability regarding their CPF growth. The Ordinary Account will continue earning 2.5% because the pegged rate remains below that threshold. For most people paying off flats in Jurong, Bedok or Woodlands, this means your HDB loan interest will stay fixed at 2.6%. There are no unexpected changes.
Updated CPF Interest Benchmarks for 2025–2026
| CPF Account Type | Updated Interest Rate | Applicable Period | Important Notes |
|---|---|---|---|
| Special / MediSave / Retirement (SMRA) | 4% | Oct–Dec 2025, extended throughout 2026 | Rate normally follows 10Y SGS + 1%, but the 4% floor remains activated. |
| Ordinary Account (OA) | 2.5% | Oct–Dec 2025 | Actual pegged rate is lower; floor interest of 2.5% is applied. |
| HDB Concessionary Loan | 2.6% | Oct–Dec 2025 | Always fixed at 0.1% above the OA interest rate. |
| Extra Interest (Below 55) | 1% on first $60,000 | Ongoing | Up to $20,000 of this extra interest can come from the OA balance. |
| Extra Interest (55 & Above) | Up to 2% extra | Ongoing | First $30,000 earns +2% extra; next $30,000 earns +1% extra. |
The Real Impact of Maintaining the 4% SMRA Floor
The SMRA rate is usually linked to the 12-month average yield of 10-year Singapore Government Securities plus 1%. When yields dropped recently the pegged rate would have fallen below 4%. The Government decided to maintain the minimum floor instead of allowing this decrease. This ensures your long-term healthcare and retirement savings continue to grow at a reasonable rate even when global interest rates decline.
OA Interest Rate Outlook: What Members Should Expect
The OA rate remains at 2.5% since the pegged value has not reached the minimum rate threshold. This impacts individuals who are saving for housing purchases or repaying their HDB loans.
The HDB concessionary loan rate is set at 0.1% higher than the OA rate. Therefore the home loan rate will stay at 2.6% through 31 December 2025. Anyone planning their budget for the coming months can expect this rate to remain stable without any unexpected increases.
Additional CPF Interest Explained: Your True Earnings
Many residents overlook the fact that CPF provides bonus interest in addition to the standard base rates. These additional earnings can steadily increase your savings over the years.
– Members who are younger than 55 receive 1% additional interest on their first $60,000 of total balances.
– However only $20,000 from the Ordinary Account applies toward this threshold.
– Members aged 55 and older get 2% extra interest on their first $30000 and another 1% extra on the following $30,000.
– The Ordinary Account portion that counts remains limited to $20,000.
Those enrolled in CPF LIFE can be assured that the bonus interest continues to apply to the funds allocated for their CPF LIFE monthly payments.
Why Extending the Interest Floor Is Timely for Singaporeans
From Clementi to Pasir Ris people have been struggling with higher hawker prices and expensive groceries & rising medical bills. Keeping SMRA at 4% helps protect retirement and healthcare savings when every dollar matters. This is not a windfall but it provides stability. In this economic climate stability is important.
