Finance

Unchanged Interest Rate: CPF Accounts Set at 4% for Q3 2025!

2025-05-23

Author: Ming

Singapore's CPF Interest Rate Holds Steady

In a time of economic uncertainty, Singaporeans can breathe a sigh of relief! The interest rate on the Central Provident Fund (CPF) Special, MediSave, and Retirement accounts will remain firmly at 4% from July to September 2025.

This decision ensures that savings in these crucial accounts continue to reap the benefits of a stable floor rate. According to a recent announcement from the CPF Board and the Housing Board, this rate is upheld as the pegged rate for the Special, MediSave, and Retirement accounts has yet to surpass the 4% threshold.

How is the Rate Determined?

Curious about how this number is decided? The interest rate is tied to the 12-month average yield of 10-year Singapore Government Securities, plus an additional perk of 1%.

Other Account Rates Remain Stable

For those with Ordinary Accounts or seeking HDB housing loans, the news is equally reassuring: interest rates remain at 2.5% and 2.6% respectively. This consistency provides a solid foundation for financial planning.

Extra Interest for CPF Members!

But that’s not all! CPF members under 55 years old will earn an extra 1% interest on the first $60,000 of their total account balances, with a cap of $20,000 for the Ordinary Account. Meanwhile, members aged 55 and older will enjoy an additional 2% on the first $30,000 and an extra 1% on the next $30,000.

Interestingly, any extra interest accrued from the Ordinary Account will be allocated to a member’s Special Account or Retirement Account, giving an extra boost to long-term savings!

What This Means for You

So, what does this mean for you? With interest rates maintaining their course, it’s an excellent opportunity for Singaporeans to maximize their retirement funds and savings. Keep an eye on your CPF accounts and ensure you’re taking full advantage of these rates in the upcoming quarter!