Gov’t extends 4% SMRA interest rate floor until 31 December 2025

This will raise the SMRA interest rate to 4.14%.

The 4% interest rate floor for interest earned on all Special, MediSave, and Retirement Account (SMRA) funds has been extended for another year until 31 December 2025.

The extension will ensure that CPF members continue receiving returns on their savings amidst the volatile interest rate environment.

From 1 October to 31 December, the SMRA interest rate will be set at 4.14% as the pegged rate exceeds the floor rate of 4%.

Meanwhile, the Ordinary Account (OA) interest rate will remain unchanged at 2.5% as the OA pegged rate remains below the floor rate of 2.5%. 

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% during the same period.

In addition, CPF members will continue to earn extra interest on their CPF savings. Members aged below 55 will earn an extra 1% interest on the first $60,000 of their 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 additional 1% on the next $30,000.

The extra interest earned on the OA balances will go into the member’s Special Account or Retirement Account. If a member is aged above 55 and participates in CPF LIFE, the extra interest will still be earned on his or her combined CPF balances, which includes the savings used for CPF LIFE.