How does the SSB interest rate step up over time?

CPF Interest Rate Structure and Step-Up

The Singapore CPF system features tiered interest rates that effectively step up based on the account type and the amount held, rewarding long-term savings locked away for retirement.

Base Interest Rates (Applicable to all accounts):

• Ordinary Account (OA): Earns a base interest rate of 2.5% per annum (CPF Board).
• Special Account (SA): Earns a base interest rate of 4.0% per annum (CPF Board).
• Medisave Account (MA): Earns a base interest rate of 4.08% per annum (This is the MA rate for Q4 2024, but the general SA/RA rate is 4.0%).

Extra Interest (The Step-Up):

CPF provides extra interest on the first SGD 60,000 of combined CPF balances (capped at $20,000 from OA).

• First $20,000 (from OA): Earns an extra 1.0% interest (Total 3.5% for OA portion).
• Next $40,000 (combined): Earns an extra 1.0% interest (Total 3.5% for OA portion, Total 5.0% for SA/RA portion).

Senior Bonus Interest (Age 55 and above):

Members aged 55 and above receive an additional 1.0% extra interest on their first SGD 30,000 of combined balances, and an additional 0.5% on the next SGD 30,000 (Total $60,000). This bonus interest is applied on top of the base and extra interest.

Retirement Account (RA) Rate:

Once the Retirement Account (RA) is formed at age 55, the funds within it earn the SA rate of 4.0%. This rate is permanent for RA balances, which are designed for CPF LIFE payouts. Note that for those aged 55 and above, excess SA balances above the Full Retirement Sum (FRS) are transferred to the OA, earning only 2.5% (plus any applicable extra interest).

2025 Changes:

For 2025, the guaranteed minimum interest rate for the Special and Retirement Accounts (SMRA) is 4.0% (CPF Board). The OA rate remains at 2.5% plus extra interest.