Attention, Singaporeans! A crucial update on your CPF and healthcare savings. Here's the deal: your CPF interest rates are staying put in Q1 2026, but there's a twist!
Deon Loke brings us the news that the Central Provident Fund (CPF) interest rates will remain unchanged across all accounts for the first quarter of 2026. But here's where it gets interesting: the Basic Healthcare Sum (BHS) is getting a boost, rising to S$79,000 for members below 65.
In a joint announcement on Monday, December 15, 2025, the CPF Board, Housing & Development Board (HDB), and the Ministry of Health (MOH) revealed that interest rates for the Ordinary Account (OA) and Special, MediSave, and Retirement Accounts (SMRA) will stick to their respective floor rates from January 1 to March 31, 2026.
The OA interest rate will stay at a healthy 2.5% per annum, while the concessionary interest rate for HDB housing loans, linked to the OA rate, will remain at 2.6% per annum. For SMRAs, the interest rate will hold steady at 4% per annum.
But here's the controversial part: the authorities noted that the SMRA pegged rate, based on Singapore Government Securities, is currently below the floor rate. So, is this a missed opportunity for higher returns?
To encourage retirement savings, the government is maintaining the extra interest mechanism on CPF balances. Members aged below 55 will earn an extra 1% interest on the first S$60,000 of their combined balances, while those aged 55 and above will earn an extra 2% on the first S$30,000 and an extra 1% on the next S$30,000.
And this is the part most people miss: the extra interest earned on OA savings is credited to the member's Special or Retirement Account, providing a boost to their long-term savings.
Now, let's talk about the Basic Healthcare Sum for 2026. The BHS, which estimates the MediSave savings needed for basic subsidized healthcare in old age, is being adjusted upwards to S$79,000 for members below 65 years old, effective January 1.
The BHS is regularly adjusted to keep up with rising healthcare costs, ensuring that Singaporeans can access the healthcare they need in their golden years. For members turning 65 in 2026, their BHS will be fixed at S$79,000 for life, while those aged 66 and above in 2026 will see no change, as their cohort's BHS remains fixed.
So, there you have it, Singapore! A comprehensive update on your CPF and healthcare savings. But here's the question: are these changes enough to ensure a comfortable retirement and access to quality healthcare? Share your thoughts in the comments and let's spark a discussion on these important financial matters!
