CPF Ordinary Account Interest Rate 2026
This page is for informational purposes only and does not constitute financial advice. Always consult a qualified financial adviser before making investment decisions.
The CPF Ordinary Account (OA) interest rate in 2026 is 2.5% per annum, set by the CPF Board as a legislated minimum floor. Interest is calculated daily and credited monthly, making your OA a low-risk, government-backed savings component for housing, education, and investments in Singapore.
What Is the CPF OA Interest Rate?
The CPF Ordinary Account (OA) pays a minimum interest rate of 2.5% per annum. This floor rate is legislated under the CPF Act, meaning the government guarantees you will never earn less than 2.5% on your OA balance, regardless of market conditions.
In practice, the OA rate is pegged to the three-month average of major local banks’ interest rates, subject to a floor of 2.5%. Since bank rates have remained above this floor periodically, the effective OA rate has stayed at 2.5% for most years. In 2024–2025, the OA rate remained at 2.5%, and the same applies through 2026.
Interest is calculated daily on the closing balance and credited on 1 January each year for the preceding year. However, if you close your CPF account or turn 55, interest is credited on the date your account is closed or when the funds are transferred to your Retirement Account.
Extra 1% Interest on First $20,000 OA
Members below age 55 earn an additional 1% per annum on the first S$20,000 of their OA balance. This extra interest is paid by the government — effectively giving you 3.5% on the first S$20,000 of OA.
However, there is a combined cap: the extra 1% applies to your first S$60,000 of combined CPF balances (OA + SA + MA + RA), with the first S$20,000 from OA. Members aged 55 and above earn an additional 2% on the first S$30,000 and 1% on the next S$30,000 of combined CPF balances.
This tiered structure is designed to give smaller savers a meaningful boost, making CPF a genuinely competitive savings vehicle for most Singaporeans.
For more on optimising your CPF returns, see our guide: CPF Investment Strategy.
OA Interest Rate vs SA and MA (2026)
Understanding all three CPF account rates helps you make smarter transfer decisions:
| Account | 2026 Rate | Extra 1% Cap |
|---|---|---|
| Ordinary Account (OA) | 2.5% p.a. | First S$20,000 of OA |
| Special Account (SA) | 4.0% p.a. | Within S$60K combined cap |
| MediSave Account (MA) | 4.0% p.a. | Within S$60K combined cap |
The SA and MA earn 4.0% p.a. (also a legislated floor), making them significantly more attractive for long-term savings. However, SA and MA funds have restricted usage — SA is for retirement, MA is for healthcare. OA funds are the most liquid: usable for housing (HDB/private), education, and CPF Investment Scheme (CPFIS) approved investments.
Should You Transfer OA to SA in 2026?
Transferring OA to SA gives you a 1.5% rate uplift (from 2.5% to 4.0%), compounded over decades. A S$50,000 OA-to-SA transfer at age 35 grows to approximately S$162,000 by age 65 at 4% vs S$104,000 at 2.5% — a difference of ~S$58,000 purely from interest.
The key tradeoff: OA-to-SA transfers are irreversible. You cannot transfer money back to OA once moved. If you have an ongoing or planned HDB purchase, keep sufficient OA for your housing needs first before considering any transfer.
The CPF SA shielding strategy was also affected by recent rule changes — as at Q1 2026, the CPF Board has clarified that SA funds above the prevailing Full Retirement Sum (FRS) can no longer be retained in the SA after age 55 under the shielding method. Always verify the latest CPF rules on cpf.gov.sg before acting.
Use our free Retirement Planning Calculator to model the long-term impact of OA-to-SA transfers.
CPFIS Investing vs Leaving Money in OA
The CPF Investment Scheme (CPFIS) allows you to invest OA savings in SGX-listed stocks, ETFs, and unit trusts. However, the hurdle rate is real: you must beat 2.5% guaranteed + extra 1% on first S$20,000 to justify the risk.
Historical data shows that many retail CPFIS investors underperformed the OA’s 2.5% floor, particularly after accounting for transaction fees. The CPF Board’s own data indicates the majority of CPFIS-OA investors would have been better off leaving funds in the OA over the past decade.
That said, low-cost index ETFs (such as the Nikko AM STI ETF or Lion-Phillip S-REIT ETF) have outperformed the OA rate over 10-year periods. The key is minimising fees and using a disciplined, long-term approach. See: Singapore REIT ETF Guide.
Frequently Asked Questions
What is the CPF OA interest rate in 2026?
The CPF Ordinary Account interest rate in 2026 is 2.5% per annum, which is the legislated minimum floor. An additional 1% per annum is paid on the first S$20,000 of OA savings for members below age 55.
Is CPF OA interest calculated daily or monthly?
CPF OA interest is calculated on a daily basis on the closing balance. However, it is credited to your account on 1 January each year (for the preceding year’s interest).
Can I get more than 2.5% on my CPF OA?
Yes — the first S$20,000 of your OA earns an additional 1% per annum (3.5% effective), subject to the overall S$60,000 combined CPF balance cap for extra interest. Members above age 55 have different tiered rates.
Should I transfer my CPF OA to SA for higher interest?
An OA-to-SA transfer gives a 1.5% rate uplift (2.5% to 4.0%) and can add significantly to your retirement savings over time. However, the transfer is irreversible, so ensure you have enough OA for housing needs before transferring.
Is the CPF OA interest rate guaranteed?
Yes. The 2.5% p.a. OA interest rate is a government-legislated floor, meaning it cannot fall below this level regardless of market or bank interest rate movements.
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