Despite the recent rise in interest rates, the pegged Ordinary Account (OA) and Special and MediSave Account (SMA) interest rates remain below the OA and SMA floor rates of 2.5% and 4% respectively. Therefore, CPF members below 55 years old will continue to earn interest rates of up to 3.5% per annum on their OA monies, and up to 5% per annum on their SMA monies in the first quarter in 2023. These interest rates include an extra 1% interest paid on the first $60,000 of members’ combined balances (capped at $20,000 for OA).
For members aged 55 and above, the Government pays an extra 2% interest on the first $30,000 of their combined balances (capped at $20,000 for OA), and an extra 1% on the next $30,000. This means that members aged 55 and above will earn up to 6% interest per annum on their retirement balances.
The extra interest paid to CPF members is part of the Government’s efforts to enhance the retirement savings of CPF members. The extra interest received on the OA will go into the member’s Special Account (SA) or Retirement Account (RA). If a member is above 55 years old and participates in the CPF LIFE scheme, the extra interest will still be earned on his or her combined balances, which includes the savings used for CPF LIFE.
The Government is watching the interest rate environment closely to ensure that the CPF interest rate pegs remain relevant in the prevailing operating environment while taking into consideration the longer-term outlook.
Interest Rate for CPF Ordinary Account and HDB Concessionary Interest Rate
The OA interest rate will be maintained at 2.5% per annum from 1 January 2023 to 31 March 2023.
Correspondingly, the concessionary interest rate for HDB housing loans, which is pegged at 0.1% above the OA interest rate, will remain unchanged at 2.6% per annum from 1 January 2023 to 31 March 2023.
Interest Rate for Special and MediSave Account
The SMA interest rate will be maintained at 4% per annum from 1 January 2023 to 31 March 2023.
Interest Rate for Retirement Account
The RA interest rate will be maintained at 4% per annum from 1 January 2023 to 31 December 2023.
Basic Healthcare Sum for 2023
The Basic Healthcare Sum (BHS) is the estimated savings required for basic subsidised healthcare needs in old age. The BHS is adjusted yearly for members below age 65 to keep pace with the growth in MediSave use. Once members reach age 65, their BHS will be fixed for the rest of their lives.
From 1 January 2023,
- For members below 65 years old, their BHS will be raised from $66,000 to $68,500.
- For members who turn 65 years old in 2023, their BHS will be fixed at $68,500 and will not change thereafter.
For members aged 66 years and above in 2023, their cohort BHS has already been fixed and will remain unchanged.
The BHS is the cap applied to the MediSave Account (MA). MediSave contributions in excess of a member’s BHS will be automatically transferred to his or her other CPF accounts.
CPF members who have less than the BHS are not required to top up their MA and will still be able to withdraw from their MA to pay for approved medical expenses.
For more information on the BHS for the respective cohorts, please visit cpf.gov.sg/BHS.
Public Enquiries
For more information on CPF interest rates and their computation, please visit CPF Interest Rates.
CPF members can visit cpf.gov.sg or contact CPF Board through cpf.gov.sg/writetous for enquiries.
