Extension or Cessation of 4% Interest Rate Floor for CPF Special, MediSave and Retirement Accounts beyond 2024

Mr Yip Hon Weng asked the Minister for Manpower (a) whether the 4% interest rate floor on the CPF Special, MediSave and Retirement Accounts will be extended beyond 31 December 2024; (b) what factors will be considered in determining the revised rate after that date; and (c) what are the circumstances under which the current interest rate floor may be reduced.

Dr Tan See Leng: The Government has extended the 4% interest rate floor on the Special, MediSave and Retirement Accounts (SMRA) monies to 31 December 2024 given the uncertain interest rate environment. With the pegged rate exceeding the 4% floor rate, Central Provident Fund (CPF) members will receive 4.08% per annum interest on their SMRA monies in the first quarter of 2024. The interest rate is reviewed quarterly.

We remain committed to help members grow their CPF savings. We will continue to review the CPF interest rates regularly, including whether to continue extending the 4% interest rate floor, taking into consideration factors such as the evolving global economic conditions and the interest rate environment.