[SINGAPORE] Central Provident Fund (CPF) members will earn an interest of 4 per cent per annum for their Special, MediSave and Retirement Accounts (SMRA) in the second quarter of 2025, the same as the first quarter.
This comes as the SMRA pegged rate remains below the floor rate of 4 per cent, said the CPF Board in a joint statement issued with the Housing and Development Board (HDB) on Wednesday (Mar 12).
The SMRA interest rate is pegged to the 12-month average yield of the 10-year Singapore Government Securities plus 1 per cent, and is subject to the floor rate.
The Ordinary Account’s (OA) interest rate also remains unchanged at the floor rate of 2.5 per cent per annum for the second quarter, as its pegged rate remains below the floor rate.
The concessionary interest rate for HDB housing loans, pegged at 0.1 per cent above the OA interest rate, will remain stable at 2.6 per cent a year.
All CPF members will continue to earn extra interest on their CPF savings. Members aged 55 and above will earn an extra 2 per cent interest on the first S$30,000 of their combined balances, capped at S$20,000 for the OA, and an additional 1 per cent on the next S$30,000.
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Those aged below 55 can expect to earn an extra 1 per cent interest on the first S$60,000 of their combined balances, also capped at S$20,000 for the OA.
The extra interest earned on the OA balances will go into the member’s Special Account (SA) or Retirement Account (RA).
On Jan 19, 2025, the SA of some 1.4 million CPF members aged 55 and above were closed. The closure of the accounts was first announced by Finance Minister Lawrence Wong in his Budget 2024 speech in Parliament in February last year.
With the closure of the SA, savings there have been transferred to the RA, up to the members’ cohort Full Retirement Sum, where they will continue to earn the long-term interest rate from January onwards.
The remaining SA savings have been transferred to the OA, with members having the flexibility to withdraw them when needed.
