MediSave Interest Rate 2026: How 4% Works (and How to Earn More)

Your complete guide to MediSave interest — base rate, bonus interest, BHS cap, and practical strategies to maximise what you earn.

Your MediSave Account earns 4% interest per year — a government-guaranteed rate on every dollar in your account. Unlike your Ordinary Account (which pays 2.5%), MediSave’s floor rate is locked in until 31 December 2026. Top it up voluntarily and most Singaporeans can earn an extra 1% bonus, pushing the effective rate to 5% per year. Aged 55 or above? You can earn up to 6%.

Not financial advice. All figures are for educational reference only. Data verified as at 5 September 2026.

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What Is the MediSave Interest Rate?

The MediSave Account (MA) earns a minimum of 4% per annum. This is a floor rate — meaning it cannot drop below 4%, regardless of what happens in financial markets.

The CPF Board reviews the MediSave rate quarterly. It uses a formula: the 12-month average yield of 10-year Singapore Government Securities (10YSGS) plus 1%. But if the formula gives a result below 4%, the government’s floor kicks in.

For the entire year of 2026, the 10YSGS-based formula has stayed below the floor. So your MediSave earns exactly 4% for all four quarters in 2026, confirmed by the CPF Board for each quarterly period (Q1, Q2, Q3, and Q4 2026).

What does 4% mean in dollar terms? On a MediSave balance of S$30,000, you earn approximately S$1,200 per year in interest. On S$50,000, that’s S$2,000 per year — completely risk-free. Compare this to most Singapore savings accounts, which pay 0.05% to around 2% on a comparable balance without meeting spend requirements.

The Extra 1% (and 2%) Bonus Interest

Here’s the part many Singaporeans overlook. On top of the 4% base rate, the government pays additional bonus interest. For most people, this pushes MediSave’s effective rate to 5% per year.

For members under 55: You earn an extra 1% per year on the first S$60,000 of your combined CPF balances. However, only up to S$20,000 of that S$60,000 can come from your Ordinary Account. The rest — including your MediSave and Special Account balances — counts dollar-for-dollar.

In practice, this means: if your combined OA + SA + MA balance is below S$60,000, your MediSave portion earns 5% per year (4% base + 1% extra) as long as the OA contribution doesn’t exceed S$20,000.

For members aged 55 and above: The bonus is even more generous. You earn:

• +2% extra on the first S$30,000 of combined CPF balances (effective rate: 6% on that portion)
• +1% extra on the next S$30,000 of combined CPF balances (effective rate: 5% on that portion)

This makes MediSave — alongside your Retirement Account — one of the highest-yielding risk-free savings instruments available to Singaporeans over 55.

Source: CPF Board, Q3 2026 interest rate announcement

How MediSave Interest Is Calculated and Credited

MediSave interest is computed on the lowest balance in your account for each calendar month. This is an important detail.

If your MediSave balance is S$50,000 at the start of March, but you withdraw S$2,000 in mid-March to pay a hospital bill, your March interest will be based on S$48,000 — the lowest monthly balance. The monthly interest figures are then added up and credited to your account once a year.

Interest is credited on 1 January of the following year. So all the interest you accumulate throughout 2026 will appear as a lump sum in your MediSave on 1 January 2027.

Worked example (under 55, S$50,000 in MediSave, combined CPF below S$60,000):

• Base rate: 4% × S$50,000 = S$2,000
• Extra 1%: 1% × S$50,000 = S$500
• Total interest credited 1 Jan 2027: approximately S$2,500

MediSave vs Other CPF Accounts

Many Singaporeans focus on their Ordinary Account (OA) for investments via CPF investment strategy Singapore. But from a pure interest-rate standpoint, MediSave consistently outperforms the OA. Here’s how all four CPF accounts compare:

Source: CPF Board, Q3 2026. Extra interest figures apply within combined balance thresholds.

The key takeaway: MediSave earns the same base rate as SA and RA — significantly more than OA — with no investment risk. The only downside is that you can’t invest MediSave funds, and withdrawals are restricted to approved healthcare expenses.

The Basic Healthcare Sum (BHS) — Your MediSave Cap

The Basic Healthcare Sum (BHS) is the maximum amount that can sit in your MediSave Account. From 1 January 2026, the BHS is S$79,000 — up from S$75,500 in 2025. That’s a S$3,500 (4.6%) increase year-on-year.

The BHS rises annually in line with long-term MediShield Life premium increases and healthcare cost trends. Once your MediSave hits the BHS:

• Mandatory MediSave contributions (from CPF salary deductions) that would normally top up MediSave are automatically redirected to your Special Account or Ordinary Account instead
• Voluntary top-ups to MediSave are no longer permitted

If you haven’t reached the BHS, you have room to voluntarily top up your MediSave — and earn that 4–5% interest on the additional balance. This is one of the most effective MediSave top-up strategies available.

Note: the BHS applies per individual. If you’re topping up a parent or spouse’s MediSave, it’s their BHS that matters — not yours.

How MediSave Interest Links to Your Integrated Shield Plan

Your MediSave balance directly affects how you pay your Integrated Shield Plan (ISP) premiums. Every Singaporean can use MediSave to pay for their ISP — but only up to the Additional Withdrawal Limits (AWL) set by CPF Board for the private insurance component.

Source: Ministry of Health, Additional Withdrawal Limits for Integrated Shield Plans

Any ISP premium above your AWL must be paid in cash. The interest your MediSave earns matters here — a larger MediSave balance means more cushion for future healthcare costs, and the compounding effect of 4–5% annual interest means your S$79,000 BHS grows meaningfully over time.

For a detailed breakdown of what ISP premiums look like at different ages, see our guide on MediShield Life benefits Singapore 2026. And if the April 2026 rider changes have you reconsidering your coverage, our explainer on ISP rider changes 2026 is worth reading first.

How to Maximise Your MediSave Interest

Three practical steps you can take right now.

1. Top up your MediSave voluntarily (if below S$79,000 BHS)
Voluntary MediSave top-ups earn the same 4–5% interest as mandatory contributions. Better still, you get a CPF cash top-up tax relief of up to S$8,000 per calendar year (combined for self and family). The tax savings on top of the interest make voluntary top-ups one of the most tax-efficient moves available to Singaporeans.

2. Keep track of your combined CPF balance vs the S$60,000 threshold
The extra 1% interest applies to the first S$60,000 of your combined OA + SA + MA balance (with OA capped at S$20,000). If your combined balance is close to but below S$60,000, every dollar in your MediSave earns 5% rather than 4%. Log into your CPF online portal to check your current combined balance and see how much of your MediSave qualifies for the bonus rate.

3. Use MediSave for eligible expenses to preserve cash
MediSave can be used for hospitalisation bills, approved outpatient treatments (such as chemotherapy and radiotherapy), chronic disease management, and ISP premiums up to your AWL. Using MediSave for these costs — rather than cash — keeps your invested savings working elsewhere, while your MediSave balance continues compounding at 4–5% per year.

To see how MediSave fits into your broader retirement picture, try our Singapore retirement calculator.

Frequently Asked Questions

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