How is the CPF Special Account and Medisave interest rate (SMRA) determined?

CPF Special Account (SA) and Medisave Account (MA) Interest Rate Determination

The interest rate for the Special Account (SA) and Medisave Account (MA) is determined by the Special, Medisave, and Retirement Account (SMRA) interest rate formula, which is benchmarked against the 12-month average of the 10-year Singapore Government Securities (10YSGS) yield, reviewed quarterly. However, there is a guaranteed minimum floor rate.

SMRA Interest Rate Floor

For 2025, the SMRA interest rate is guaranteed to be a minimum of 4.0% per annum (as per the major CPF changes for 2025). This is a key feature, as the actual calculated rate based on the 10YSGS benchmark might fall below this floor. For instance, the last quarter rate before this guarantee was 4.14%, but the guaranteed floor ensures a minimum of 4.0% for the entirety of 2025.

SA and MA Interest Application

• SA: The SA earns this SMRA rate. For those aged 55 and above, after the SA closes in mid-January 2025, any funds transferred into the Retirement Account (RA) from the SA (up to the Full Retirement Sum, FRS) will also earn the RA rate (currently 4.0% or the SMRA rate, whichever is higher, with a guaranteed 4.0% floor for 2025).
• MA: The MA also earns the SMRA rate. If the Medisave Basic Healthcare Sum (BHS) is hit (projected to be S$79,000 in 2026), any excess funds in the MA will flow to the SA (or RA if SA is closed) to earn the higher applicable rate, unless the SA/RA has already hit its respective limits.

Key Takeaway: While the rate is benchmarked quarterly, Singaporeans benefit from a guaranteed minimum floor rate of 4.0% for their SA and MA balances throughout 2025.