The interest rate for Central Provident Fund (CPF) Special, MediSave, and Retirement accounts will decrease to 4 percent per annum in the first quarter of 2025. This marks the first reduction after two consecutive quarterly increases. The adjustment is attributed to a decrease in the 12-month average yield of 10-year Singapore Government Securities, according to a joint news release by the CPF Board, Housing Board (HDB), and the Ministry of Health (MOH) on Wednesday (Dec 11).
From January 1 to March 31, 2025, savings in these accounts will earn the lowered interest rate. The Ordinary Account (OA) interest rate will remain at 2.5 percent. The concessionary interest rate for HDB housing loans, pegged at 0.1 percent above the OA interest rate, will stay at 2.6 percent during the same period.
Additional interest on CPF savings will continue. Members below 55 years old will earn an extra 1 percent interest on the first S$60,000 of their combined balances, with this interest capped at S$20,000 for the OA. Those aged 55 and above will receive an extra 2 percent interest on the first S$30,000 of their combined balances, also capped at S$20,000 for the OA, and an extra 1 percent on the next S$30,000.
This extra interest on OA balances will be transferred to a member’s Special Account or Retirement Account.
Cpf rates lowered for 2025
Members over 55 who participate in the CPF LIFE scheme will still earn extra interest on their combined CPF balances, including savings utilized for CPF LIFE.
Authorities also announced an increase in the Basic Healthcare Sum (BHS) for 2025. Starting January 1, CPF members under 65 will see their BHS rise from S$71,500 to S$75,500. Those who turn 65 in 2025 will have their BHS fixed at S$75,500, which will not change thereafter.
For CPF members aged 66 and above in 2025, their BHS has already been fixed and will remain unchanged. The BHS represents the estimated savings required for basic subsidized healthcare needs in old age. It is adjusted yearly by MOH for those under 65 to keep pace with MediSave use growth.
Contributions to the MediSave account can be made up to the BHS level. Any excess MediSave contributions will be automatically transferred to other CPF accounts. Members with less than the BHS are not required to top up their MediSave account and can still withdraw funds for approved medical expenses.
Noah Nguyen is a multi-talented developer who brings a unique perspective to his craft. Initially a creative writing professor, he turned to Dev work for the ability to work remotely. He now lives in Seattle, spending time hiking and drinking craft beer with his fiancee.
