The Central Provident Fund (CPF) Board and the Ministry of Finance (MOF) have confirmed the CPF interest rates for the second quarter of 2025. Running from April 1 to June 30, 2025, these rates remain stable across all major CPF accounts. Here’s a detailed look at what CPF members can expect and how this impacts your savings strategy.
CPF Interest Rates from April to June 2025
The CPF Board maintains different interest rates depending on the account type. Here are the official rates for Q2 2025:
| Account Type | Interest Rate (Annualized) | Additional Notes |
|---|---|---|
| Ordinary Account (OA) | 2.5% | Extra 1% interest on first $60,000 of combined balances |
| Special Account (SA) | 4.04% | Long-term retirement-focused savings |
| MediSave Account (MA) | 4.04% | Funds for healthcare and medical expenses |
| Retirement Account (RA) | 4.04% | Applies to members aged 55 and above |
| CPF LIFE Escalating Plan | Varies | Based on age, plan selection, and interest crediting assumptions |
These rates reflect the Government’s commitment to providing secure, risk-free returns to CPF members. Notably, the Special and MediSave Accounts continue to earn a higher return compared to the Ordinary Account, encouraging longer-term savings.
Why CPF Rates Remain Stable
CPF interest rates are pegged to market benchmarks but include a floor rate to protect CPF members during periods of low market interest. The Ordinary Account rate, for example, is calculated based on the three-month average of major local banks’ interest rates but has a guaranteed minimum of 2.5%.
The higher 4.04% rate for SA, MA, and RA is based on the 12-month average yield of 10-year Singapore Government Securities (10Y SGS), plus 1%. The floor rate of 4.0% has been extended until December 2025, ensuring CPF members earn steady returns regardless of broader economic fluctuations.
Additional Interest Explained
To boost retirement savings, CPF members enjoy extra interest:
- Members below age 55 earn an extra 1% on the first $60,000 of their combined CPF balances (capped at $20,000 for the OA).
- Members aged 55 and above receive an extra 2% on the first $30,000 and 1% on the next $30,000 of their combined CPF balances.
This bonus interest is credited to the Special or Retirement Account for those 55 and older, helping enhance their CPF LIFE monthly payouts.
How This Impacts CPF Strategies
For members planning their financial moves in Q2 2025, these rates offer guidance:
- Young workers: Continue to prioritize OA contributions for home financing but consider voluntary transfers to SA to earn higher interest.
- Mid-career professionals: Evaluate whether to top up SA/MA for tax relief and long-term growth.
- Pre-retirees and retirees: Make the most of the additional interest to increase CPF LIFE payouts.
Maintaining healthy balances in SA and RA maximizes compounding benefits over time, especially with the floor rate extension providing predictability in returns.
Voluntary Top-Ups: Still Worth It?
Given the solid 4.04% interest rate on SA and MA, voluntary contributions remain an effective tool for tax savings and compound growth. The Retirement Sum Topping-Up (RSTU) scheme allows you to transfer funds from OA to SA or RA, depending on your age, to boost your retirement adequacy.
Before making a top-up, assess your liquidity needs. CPF savings are locked in until the statutory withdrawal age or specific conditions are met.
Conclusion
The CPF interest rates for Q2 2025 continue to offer stable and competitive returns, particularly in an uncertain global economic environment. With SA, MA, and RA interest holding above 4%, and added bonuses for lower balances and older members, CPF remains a vital part of Singaporeans’ financial planning. Now is a good time to reassess your CPF strategy to maximize benefits from both interest earnings and policy incentives.
FAQ
How often are CPF interest rates reviewed?
CPF interest rates are reviewed quarterly. Updates are announced before the start of each quarter (January, April, July, October).
Can I move funds between CPF accounts?
You can transfer funds from your Ordinary Account to your Special or Retirement Account to earn higher interest, but the reverse is not allowed.
What happens if I top up my MediSave Account beyond the limit?
Any excess above the Basic Healthcare Sum (BHS) is transferred to your Special or Retirement Account, subject to the Full Retirement Sum (FRS) limit.
How do these rates compare to inflation?
As of April 2025, the CPF rates for SA, MA, and RA outpace the core inflation rate, preserving and potentially increasing purchasing power for long-term savings.
Is CPF interest taxable?
No. CPF interest is not subject to income tax.
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