By The Ledger desk · Last verified 3 October 2026
Your CPF isn’t one pot of money. It’s four accounts, each with its own job and its own interest rate. The Ordinary Account (OA) pays 2.5% a year and is the one you use for housing and education. The Special Account (SA) and Retirement Account (RA) are for old age, and the MediSave Account (MA) is for healthcare; all three pay at least 4% a year, a floor the Government has promised to keep until 31 December 2027. On top of that, the first S$60,000 of your combined balances earns an extra 1%, and from 55 the first S$30,000 earns an extra 2%.
Once you know which account does what, a CPF statement stops looking like a puzzle and starts looking like a plan. Here’s the whole map, one account at a time.
Quick facts
- Ordinary Account: 2.5% a year. Housing, approved education, some investments.
- Special, MediSave and Retirement Accounts: at least 4% a year, floor guaranteed until end-2027.
- Extra interest: +1% on the first S$60,000 of combined balances (only S$20,000 of it can come from the OA).
- Aged 55 and above: +2% on the first S$30,000 and +1% on the next S$30,000.
- The Special Account closed for everyone aged 55 and above in January 2025; those savings moved to the Retirement Account.
- Interest is calculated monthly and credited once a year, at the start of January.
The four accounts at a glance
| Account | What it’s for | Interest (Oct–Dec 2026) | Who has it |
|---|---|---|---|
| Ordinary (OA) | Buying a home, approved education, CPF investments | 2.5% | All members |
| Special (SA) | Retirement savings and retirement-related investments | 4% | Members below 55 |
| MediSave (MA) | Hospital bills, approved outpatient treatment, MediShield Life and Integrated Shield premiums | 4% | All members |
| Retirement (RA) | Funds your monthly CPF LIFE payouts | 4% | Created when you turn 55 |
The Ordinary Account rate is reviewed every quarter. For October to December 2026 it stays at 2.5%, and the HDB concessionary loan rate, which is pegged 0.1 points above it, stays at 2.6%.
The Ordinary Account: the one you’ll spend
Think of the OA as the busy account. It pays the downpayment and the monthly instalments on most Singapore homes, it can fund a local diploma or degree under the CPF Education Scheme, and it can be invested under the CPF Investment Scheme once you’ve kept a base amount in it. Because it’s the account people draw on most, it pays the lowest rate. That’s the trade: flexibility now, a smaller return.
The Special Account: the slow, steady one
The SA is retirement money that’s left alone to grow. You can’t use it for a house, which is exactly why it pays more. Many people choose to top it up in cash for two happy reasons at once: the 4% floor, and tax relief of up to S$8,000 a year for topping up your own account (and up to another S$8,000 for topping up family members). Remember that money moved into the SA can’t be moved back to the OA.
MediSave: the health account
MediSave pays for hospitalisation, day surgery, certain outpatient treatments such as chronic-disease care and approved scans, and the premiums for MediShield Life and Integrated Shield Plans. It fills only up to the Basic Healthcare Sum; once you reach it, extra contributions flow over into your SA or RA instead, so they keep earning for retirement.
The Retirement Account: what happens at 55
On your 55th birthday CPF opens your Retirement Account and moves savings into it, first from the SA and then from the OA, up to your retirement sum. Since January 2025, the SA closes at 55 for everyone, so members aged 55 and above hold three accounts: OA, MediSave and RA. The RA is what funds CPF LIFE, the annuity that pays you a monthly sum for life from 65 (you can defer to as late as 70 for larger payouts).
| Retirement sum (turning 55 in 2026) | Amount | Estimated payout from 65 |
|---|---|---|
| Basic Retirement Sum | S$110,200 | About S$950 a month |
| Full Retirement Sum | S$220,400 | About S$1,780 a month |
| Enhanced Retirement Sum | S$440,800 | About S$3,440 a month |
Payouts are CPF’s own estimates for the CPF LIFE Standard Plan and depend on your age, your plan and when you start. Whatever stays in the OA above your retirement sum can be withdrawn from 55.
How does the extra interest work?
CPF adds a bonus to the first slice of your savings, which helps people with smaller balances most. Below 55, the first S$60,000 of your combined balances earns 1% more, but only up to S$20,000 of that S$60,000 can come from the OA. At 55 and above, the first S$30,000 earns 2% more and the next S$30,000 earns 1% more. Extra interest earned on OA money doesn’t land in the OA: it goes to your SA (or RA from 55), where it keeps compounding for retirement.
A simple example: a 35-year-old with S$40,000 in the OA, S$25,000 in the SA and S$15,000 in MediSave gets the extra 1% on S$20,000 of OA money plus all S$40,000 of SA and MediSave money. That’s S$60,000 earning the bonus, the maximum.
The WahLiao Verdict
CPF is quietly one of the best-paying, safest places your money sits in Singapore: a guaranteed 4% is hard to find anywhere else without risk. The catch is time, because SA and RA money is locked up for retirement. Keep enough in the OA for your home, let the other accounts grow, and treat any SA top-up as money you’re happily sending to your 65-year-old self.
Questions people ask
How do I check my balances?
Log in to the CPF website or the CPF Mobile app with Singpass. The dashboard shows each account, your transactions and your projected CPF LIFE payouts.
Can I move money from my OA to my SA?
Yes, below 55, up to the current Full Retirement Sum. It earns more, but the transfer is one-way and doesn’t qualify for tax relief.
When is interest paid?
It’s worked out every month and credited to your accounts once a year, in January, where it compounds. Money paid in during a month starts earning from the following month, and money withdrawn stops earning from the month it leaves.
Will the 4% floor end?
The Government has extended it to 31 December 2027 and reviews it periodically. The OA’s 2.5% is a legislated minimum.
Sources: CPF Board, earning CPF interest and extension of the 4% floor to end-2027; AsiaOne on rates for October to December 2026; Smart Calculator on 2026 retirement sums. The Ledger explains; it does not advise.
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