What is the guaranteed minimum interest rate on the CPF Ordinary Account?

Guaranteed Minimum Interest Rate for CPF Ordinary Account (OA)

The guaranteed minimum interest rate applicable to the CPF Ordinary Account (OA) is 2.5% per annum (CPF Board).

This rate is fixed and applies to all balances held in the OA, regardless of the prevailing market rates or the account holder's age. This contrasts with the Special Account (SA) and Retirement Account (RA), which earn a minimum of 4% (or the prevailing 12-month average of 10-year Singapore Government Securities plus 1%, whichever is higher, with a guaranteed floor of 4% for the SA/RA).

OA Liquidity and Interest Comparison

The OA balance earns 2.5% interest and is considered fully liquid after age 55, meaning funds can generally be withdrawn anytime (subject to CPF withdrawal rules). If an individual aged 55 or above chooses to transfer excess funds from their OA into their Retirement Account (RA) to earn the higher 4% interest, this transfer is permanent (one-way) and the funds are locked in for monthly CPF LIFE payouts starting from age 65.

For example, if you have excess funds in your OA after your RA is topped up to the Full Retirement Sum (FRS) of $213,000 (2025 figures), keeping the money in the OA yields 2.5% but remains withdrawable, whereas transferring it to the RA yields 4% but is permanently locked for retirement income (CPF Board).

Interest on Balances Above Retirement Sums

It is important to note that interest earned on balances up to the Enhanced Retirement Sum (ERS) is credited to the respective accounts. For those aged 55 and above, interest earned on the OA balance is credited to the OA, maintaining the 2.5% floor.