Where does my Medisave interest go once it hits the Basic Healthcare Sum limit?

Medisave Overflow Mechanism After Reaching Basic Healthcare Sum (BHS)

Once your Medisave Account (MA) balance reaches the prevailing Basic Healthcare Sum (BHS), any subsequent contributions or interest earned that would normally go into MA will be channeled to your other CPF accounts based on a defined hierarchy. For 2025, the BHS is S$75,500 (up from S$71,500 in 2024).

Contribution Allocation Flow (Age 35-45 Example):

For an individual aged 35 to 45, the standard monthly CPF contribution allocation is: MediSave 9%, Special Account (SA) 7%, and Ordinary Account (OA) 21% (based on the provided example allocation structure).

• MA Overflow to SA: If your MA hits the BHS, the portion of your contribution designated for MA (e.g., 9% of salary) will first overflow to your Special Account (SA) until the SA reaches its limit (which is the Full Retirement Sum, FRS, for those below 55, or until SA closes at age 55).
• SA Overflow to OA: If your SA is also full (i.e., has reached the FRS limit, or if you are above 55 and SA contributions are redirected), the funds will then overflow into your Ordinary Account (OA).

Interest Overflow:

Interest earned on the MA balance above the BHS follows the same overflow mechanism. For example, if you are earning interest on your MA balance which is already above S$75,500 (in 2025), that interest will be credited to your SA first, and subsequently to your OA if the SA is full. This ensures that all your CPF funds continue to earn interest, prioritizing retirement savings (SA/RA) over housing/liquidity savings (OA) once healthcare needs are sufficiently covered.

Note on SA Closure (Age 55+):

For those aged 55 and above in 2025, contributions no longer go to the SA. Instead, they flow to the Retirement Account (RA) up to the FRS (S$213,000 in 2025), and any remaining excess contribution goes directly to the OA. The overflow logic for MA contributions remains consistent: MA -> SA (if below 55) -> OA, or MA -> RA (if 55+) -> OA.