Singaporeans saving through the Central Provident Fund (CPF) will see consistent returns in the upcoming quarter, as the interest rates for the Special, MediSave, and Retirement Accounts (SMRA) remain fixed at 4 per cent per annum for the third quarter of 2025. This announcement aligns with the figures from the previous quarter, providing continued financial stability and predictability for CPF members across the country.
The decision to maintain the SMRA interest rate is based on the formula used to calculate it. The rate is pegged to the 12-month average yield of 10-year Singapore Government Securities plus an additional 1 per cent. However, since the pegged rate continues to fall below the floor rate of 4 per cent, the CPF Board and Housing and Development Board (HDB) jointly confirmed that the default 4 per cent will remain in effect for Q3 2025.
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Ordinary Account Continues at the Floor Rate of 2.5 Per Cent
In a similar vein, the interest rate for the Ordinary Account (OA) remains at the longstanding floor rate of 2.5 per cent per annum. The pegged OA rate has also stayed below the floor threshold, resulting in the maintained interest level for another quarter. This interest level has remained stable for years and continues to offer CPF members a secure savings option.
The OA is frequently used by members for housing, education, and insurance needs, so the steady rate provides predictability for long-term planning. This also has a knock-on effect on housing loan rates, particularly those under the public housing scheme.
HDB Housing Loan Rates Stay at 2.6 Per Cent Per Annum
Because the concessionary interest rate for HDB housing loans is pegged at 0.1 per cent above the OA interest rate, it too remains unchanged. As a result, homeowners who rely on HDB loans will continue to enjoy a relatively low annual interest rate of 2.6 per cent, maintaining affordability for many families residing in public flats.
This consistency in loan rates is beneficial not just for existing borrowers, but also for prospective homeowners who are factoring in loan servicing costs as they consider property ownership under the public housing scheme.
Additional Interest Earnings for CPF Members Remain Intact
Beyond the base interest rates, CPF members will continue to enjoy additional interest earnings, which further enhance their savings. For members aged 55 and above, an additional 2 per cent interest is credited to the first S$30,000 of their combined CPF balances. This extra interest is subject to a cap of S$20,000 for OA funds. An extra 1 per cent is also applied to the next S$30,000 of combined balances, providing a significant earnings boost for senior members.
For younger members under the age of 55, an extra 1 per cent interest is granted on the first S$60,000 of their combined balances, similarly capped at S$20,000 for the OA. These additional interest rates serve as a key incentive to save consistently and early through the CPF system.
Enhancing Retirement Security Through Strategic CPF Allocations
CPF has long been recognised as a cornerstone of retirement planning in Singapore. The structure of interest rates, coupled with the tiered additional earnings, ensures that savings grow steadily over time. Notably, the additional interest earned on OA balances is automatically channelled into either the Special Account or the Retirement Account, depending on the member’s age and CPF status. This mechanism helps reinforce long-term savings, especially for those approaching retirement age.
Members enrolled in CPF Life Singapore’s national annuity scheme will also benefit from this structure. The additional interest continues to apply to their combined balances, including the portion used for CPF Life premiums, thus enhancing their monthly payouts and long-term financial resilience.
A Reliable Framework Amid Uncertain Economic Conditions
The decision to maintain CPF interest rates is particularly important in the current global economic environment. As inflation and interest rate fluctuations remain concerns worldwide, Singapore’s CPF system stands out for its stability and reliability. By keeping the SMRA and OA rates at their floor levels, the CPF Board provides assurance to members who depend on these funds for housing, healthcare, and retirement needs.
The pegged rate mechanism, tied to Singapore Government Securities, also ensures transparency in how rates are determined. The floor rates serve as a protective measure, guaranteeing that members do not earn below a minimum interest level even when market conditions are unfavourable.
What CPF Members Should Consider
With the Q3 2025 interest rates now confirmed, CPF members can better plan their mid- and long-term financial strategies. Seniors can continue to rely on enhanced returns to support their retirement plans, while younger members may consider leveraging CPF accounts for higher-yield saving over time.
The consistent rates also mean that those considering housing purchases or refinancing HDB loans can expect stable repayment amounts in the near future. Meanwhile, families planning healthcare needs or education expenses can count on CPF savings to remain a dependable financial resource.
CPF’s Role in Nation-Wide Financial Security
The CPF system continues to play a vital role in shaping Singapore’s national strategy for personal financial security. By maintaining high levels of interest across its core accounts and offering additional interest tiers, the scheme aligns with the government’s broader goal of fostering self-reliance and robust retirement savings among citizens.
As the third quarter of 2025 approaches, Singaporeans can take comfort in the CPF Board’s decision to maintain strong interest levels, reinforcing CPF’s reputation as a reliable and efficient savings platform for all stages of life.
