KEY HIGHLIGHTS
- CPF interest rates stay unchanged into early 2026, with OA at 2.5% and SMRA at 4%
- Basic Healthcare Sum (BHS) increases to S$79,000 for members below 65
- Overall impact: steady returns, higher MediSave cap, no shocks for Singaporeans
For most Singaporeans, it affects housing, healthcare, and long-term income — all at once.
Heading into 2026, two updates matter most: CPF interest rates and the Basic Healthcare Sum (BHS).
The short answer? No surprises, but still important.
CPF Interest Rates for 2026: Still Rock-Steady
If you were worried about CPF rates dropping — relax.
For 1 Jan to 31 Mar 2026, rates stay exactly the same.
Current CPF Interest Rates (Q1 2026)
| CPF Account / Loan | Interest Rate | What It Means for You |
|---|---|---|
| Ordinary Account (OA) | 2.5% p.a. | Stable growth for housing & savings |
| Special Account (SA) | 4.0% p.a. | Strong long-term retirement growth |
| MediSave Account (MA) | 4.0% p.a. | Reliable healthcare savings |
| Retirement Account (RA) | 4.0% p.a. | Higher lifelong CPF LIFE payouts |
| HDB Concessionary Loan | 2.6% p.a. | Still cheaper than most bank loans |
These are guaranteed floor rates set by the Government.
Even if global rates fall, CPF won’t dip below this.
Extra CPF Interest: Small Bonus, Big Difference
On top of base rates, there’s extra interest — and it adds up over time.
Who Gets What?
Below 55 years old
- Extra 1% on first S$60,000 of CPF balances
- OA portion capped at S$20,000
55 years and above
- Extra 2% on first S$30,000
- Extra 1% on next S$30,000
Worth noting:
Any extra interest earned on OA is automatically moved to SA or RA, boosting retirement savings faster.
Honestly speaking, this is one of CPF’s most underrated perks.
Why CPF Rates Aren’t Changing
CPF rates are protected by floor rates:
- OA floor: 2.5%
- SMRA floor: 4.0%
Even though market formulas suggest lower returns, the Government has extended the 4% SMRA floor throughout 2026.
For Singaporeans, this means certainty — no guessing, no panic moves.
Basic Healthcare Sum (BHS) 2026: Higher Cap, Same Rules
The Basic Healthcare Sum (BHS) is the MediSave amount needed for basic subsidised healthcare in old age.
It’s reviewed yearly — and yes, it’s going up again.
BHS Levels for 2026
- Below 65 years old: S$79,000 (up from S$75,500)
- Turning 65 in 2026: S$79,000, fixed for life
- Already 65+ before 2026: No change (based on your cohort)
No need to overthink this — the rule stays simple.
What the BHS Increase Means for You
If you’re under 65
Your MediSave can now grow to S$79,000.
If you already hit the old cap, new contributions finally have somewhere to go.
If you’re 65 or older
Your BHS is locked in.
Future increases won’t affect you at all.
Why BHS Keeps Rising
Healthcare costs go up.
People live longer.
Medical usage increases with age.
The annual BHS adjustment is meant to keep MediSave realistic, not excessive.
So… Is This Good or Bad?
For most Singaporeans, this is quietly positive.
- 4% CPF returns still beat most bank savings
- Higher BHS means better healthcare readiness
- Extra interest continues to reward early savers
- HDB loan rate remains predictable at 2.6%
Nothing flashy — but solid.
Practical Tips to Make CPF Work Harder
- Watch your MediSave balance once nearing BHS
- Maximise balances within extra interest caps
- Consider SA or RA top-ups if cash allows
- Use CPF LIFE properly for retirement income planning
- Check updates directly from Central Provident Fund
Frequently Asked Questions
1. Will CPF interest rates drop later in 2026?
Possible, but unlikely to fall below current floor rates. OA stays at 2.5%, SMRA at 4% unless policies change.
2. Can my MediSave exceed the BHS?
No. Once you hit BHS, excess contributions flow to SA or RA instead.
3. Does the BHS increase affect CPF LIFE payouts?
Indirectly. Higher MediSave limits don’t change payouts directly, but stronger overall CPF balances support retirement planning.
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