Yahoo Finance 
Interest rates for Singapore's CPF Special, Medisave and Retirement accounts to increase to 4.08% in Q1 2024
The CPF Ordinary Account (OA) interest rate will remain unchanged at 2.5 per cent for the same period.
SINGAPORE — The interest rate for the Central Provident Fund (CPF) Special and Medisave accounts (SMA) will increase from 4.04 per cent per annum to 4.08 per cent per annum in the first quarter of 2024 – 1 January to 31 March 2024.
"This is due to the increase in the 12-month average yield of 10-year Singapore Government Securities (10YSGS), which the SMA interest rate is pegged to," said CPF, Housing and Development Board (HDB) and Ministry of Health (MOH) in a joint statement on Wednesday (6 December).
The Retirement Account (RA) interest rate will also move up to 4.08 per cent in the same period.
The RA interest rate peg, as part of the government's review of the CPF interest rate pegs, will be aligned to that of the SMA and computed quarterly instead of annually from 1 January 2024.
"This change will allow the RA interest rate to be more responsive to the prevailing interest rate environment," the authorities said.
No change in CPF accounts' floor rates
However, there is no change to the SMA and RA floor rate of four per cent until 31 December 2024, as announced on 21 September 2023.
The Ordinary Account (OA) interest rate will remain unchanged at 2.5 per cent for the same period, as the pegged OA rate remains below the floor rate of 2.5 per cent.
The government, they said, will continue to ensure that the CPF interest rate pegs remain relevant in the prevailing operating environment while taking into consideration the longer-term outlook.
Extra interest on CPF savings
CPF members will also earn extra interest on their CPF savings, as part of government's effort to enhance retirement savings for them.
CPF members below 55 years old will earn an extra one per cent interest on the first of S$60,000 of their combined balances (capped at S$20,000 for OA). Those who are aged 55 and above will get an extra two per cent interest for the first S$30,000 of their combined balances (capped at S$20,000 for OA), and an extra one per cent on the next S$30,000.
"The extra interest received on the OA balances will go into the member's Special Account (SA) or Retirement Account (RA). If a member is above 55 years old and participates in the CPF LIFE scheme, the extra interest will still be earned on his or her combined CPF balances, which includes the savings used for CPF LIFE," said the authorities.
Correspondingly, the concessionary interest rate for HDB housing loans, which is pegged at 0.1 per cent above the OA interest rate, will remain unchanged at 2.6 per cent per annum from 1 January 2024 to 31 March 2024.
Adjusted Basic Healthcare Sum
From 1 January, the Basic Healthcare Sum (BHS) will be raised from S$68,500 to S$71,500 for members below 65 years old. For members who turn 65 in 2024, their BHS will be fixed at S$71,500 and will not change thereafter.
Meanwhile, for members aged 66 and above in 2024, their cohort BHS has already been fixed and will remain unchanged.
The authorities said that the BHS is adjusted yearly for members below age 65 to keep pace with the growth in Medisave use. Once members reach age 65, their BHS will be fixed for the rest of their lives.
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