--- title: "CPF Interest Rates 2027: Why the Government Just Extended the 4% Floor" description: CPF's 4% interest rate floor on Special, MediSave and Retirement Account savings has been extended to 2027, locking in returns for Singaporean savers. image: https://www.thefinancialcoconut.com/hubfs/man-in-suit-works-outdoors-on-laptop-2026-09-21-15-26-46-utc-jpg.jpeg --- [Skip to content](https://www.thefinancialcoconut.com/blog/cpf-interest-rate-floor-extended-2027#main-content) [![Full\_COlour](https://www.thefinancialcoconut.com/hs-fs/hubfs/Full_COlour.png?width=456&height=80&name=Full_COlour.png)](https://www.thefinancialcoconut.com/) - [Retirement Marketspace](https://retirementmarketspace.thefinancialcoconut.com/) - [Events](https://www.thefinancialcoconut.com/events) Show submenu for Events - [For Investors](https://tfcmysterymeetup.com/) - [For Business Owners & Creators](https://ipcreatorunite.peatix.com/) - [For Salaried Workers](https://www.thefinancialcoconut.com/thought-leadership-series) - [TFC Events](https://www.thefinancialcoconut.com/events) - [Shows](https://www.thefinancialcoconut.com/tfc-shows) Show submenu for Shows - [Wise and Shine](https://www.thefinancialcoconut.com/wise-and-shine) - [The Business Show](https://www.thefinancialcoconut.com/tfc-business-show) - [Chills with TFC](https://www.thefinancialcoconut.com/chills-with-tfc) - [Blog](https://www.thefinancialcoconut.com/blog) Show submenu for Blog - [Work Smart](https://www.thefinancialcoconut.com/worksmart) - [Invest](https://www.thefinancialcoconut.com/invest) - [Retire Well](https://www.thefinancialcoconut.com/retire-well) - [Business](https://www.thefinancialcoconut.com/business) Open main navigation Close main navigation - [Retirement Marketspace](https://retirementmarketspace.thefinancialcoconut.com/) - [Events](https://www.thefinancialcoconut.com/events) Show submenu for Events - [For Investors](https://tfcmysterymeetup.com/) - [For Business Owners & Creators](https://ipcreatorunite.peatix.com/) - [For Salaried Workers](https://www.thefinancialcoconut.com/thought-leadership-series) - [TFC Events](https://www.thefinancialcoconut.com/events) - [Shows](https://www.thefinancialcoconut.com/tfc-shows) Show submenu for Shows - [Wise and Shine](https://www.thefinancialcoconut.com/wise-and-shine) - [The Business Show](https://www.thefinancialcoconut.com/tfc-business-show) - [Chills with TFC](https://www.thefinancialcoconut.com/chills-with-tfc) - [Blog](https://www.thefinancialcoconut.com/blog) Show submenu for Blog - [Work Smart](https://www.thefinancialcoconut.com/worksmart) - [Invest](https://www.thefinancialcoconut.com/invest) - [Retire Well](https://www.thefinancialcoconut.com/retire-well) - [Business](https://www.thefinancialcoconut.com/business) - [Contact us](https://www.thefinancialcoconut.com/contact-us) [Contact us](https://www.thefinancialcoconut.com/contact-us) Oct 1, 2026, 1:19:31 PM # CPF Interest Rates 2027: Why the Government Just Extended the 4% Floor ![Picture of The Financial Coconut](https://www.thefinancialcoconut.com/hs-fs/hubfs/Square%20(2)-3.png?width=50&name=Square%20(2)-3.png) [The Financial Coconut](https://www.thefinancialcoconut.com/blog/author/the-financial-coconut) Share: [facebook-f icon](http://www.facebook.com/share.php?u=https://www.thefinancialcoconut.com/blog/cpf-interest-rate-floor-extended-2027) [linkedin-in icon](http://www.linkedin.com/shareArticle?mini=true&url=https://www.thefinancialcoconut.com/blog/cpf-interest-rate-floor-extended-2027) [envelope icon](mailto:?body=https://www.thefinancialcoconut.com/blog/cpf-interest-rate-floor-extended-2027) [Share this page](https://twitter.com/intent/tweet?url=https://www.thefinancialcoconut.com/blog/cpf-interest-rate-floor-extended-2027) [![Follow The Financial Coconut](https://no-cache.hubspot.com/cta/default/46975693/interactive-182431637553.png)](https://cta-service-cms2.hubspot.com/web-interactives/public/v1/track/redirect?encryptedPayload=AVxigLL2CjCe42iR2RH2MpVX0Ej%2BKJQ%2F3A0Z7pXnUs35To%2Bo6nbKcpBVq9I98X5NUungVEwfs5YCKuM%2FaP97VxIITkTlihT57%2F%2F4XDW9rT3VR4MatSLDi%2BMU5mbQqihfX3LRRz83ij8K19OiD8UXy8sdct4t0Q%3D%3D&webInteractiveContentId=182431637553&portalId=46975693)   CPF savers get another year of certainty. On 22 September 2026, the CPF Board confirmed it is extending the 4% interest rate floor on Special, MediSave and Retirement Account (SMRA) savings through 31 December 2027, a full year beyond the previous guarantee. Ordinary Account (OA) and HDB concessionary loan rates hold steady at 2.5% and 2.6% for the fourth quarter of 2026. ## What exactly changed on 22 September 2026? The CPF Board announced that the 4% floor rate on SMRA monies, previously guaranteed only until 31 December 2026, now runs through 31 December 2027. For the quarter running 1 October to 31 December 2026, rates are: Ordinary Account (OA) 2.5% per annum, Special, MediSave and Retirement Accounts (SMRA) 4% per annum, and the HDB concessionary housing loan rate 2.6% per annum, all unchanged from the prior quarter. Members also keep their extra interest on top of these base rates. Those below 55 earn an additional 1% on the first $60,000 of combined CPF balances, capped at $20,000 from the OA. Those 55 and older earn an extra 2% on the first $30,000 of combined balances and a further 1% on the next $30,000. ![](https://www.thefinancialcoconut.com/hs-fs/hubfs/man-in-suit-works-outdoors-on-laptop-2026-09-21-15-26-46-utc-jpg.jpeg?width=5000&height=3337&name=man-in-suit-works-outdoors-on-laptop-2026-09-21-15-26-46-utc-jpg.jpeg) ## Why does CPF even have a "floor" rate? SMRA interest is technically pegged to the 12-month average yield of 10-year Singapore Government Securities, plus 1%. Since the 2008 financial crisis, the government has separately guaranteed a minimum 4% on these accounts regardless of what that formula produces, to shield retirement savings from prolonged low-rate periods. Extending the floor to 2027, rather than letting it lapse, signals the government still sees enough uncertainty ahead to keep the guarantee running. In its statement, the CPF Board said the move is meant to "help members grow their retirement savings and provide them with certainty on their CPF returns amid the uncertain economic and interest rate environment." ## How does this compare with T-bills and SSBs right now? CPF's 4% SMRA floor stays well ahead of Singapore's other "risk-free" options, even after a notable move higher. The US Federal Reserve raised its benchmark rate to 3.75% to 4.00% on 16 September 2026, and Singapore's short-term rates followed: the 6-month T-bill auction on 24 September 2026 cleared at a cut-off yield of 1.92%, its highest point this year and a sharp climb from the 1.5% to 1.6% range seen earlier in 2026. That is still less than half of what SMRA savings guarantee. For money you cannot touch before 55, CPF remains the harder rate to beat. ![](https://www.thefinancialcoconut.com/hs-fs/hubfs/fifty-singapore-dollars-banknote-2026-09-21-22-52-22-utc-jpg.jpeg?width=6000&height=4000&name=fifty-singapore-dollars-banknote-2026-09-21-22-52-22-utc-jpg.jpeg) ## What should you actually do with this information? If you already hold Special, Retirement or MediSave balances, nothing changes operationally, your rate simply stays locked at 4% for another year instead of facing uncertainty at end-2026. For those weighing voluntary top-ups under the Retirement Sum Topping-Up Scheme, this extension adds a year of predictability, though top-ups remain irreversible and only suit money you are confident you will not need before retirement. It is worth remembering CPF savings sit within a tiered system, the Basic, Full and Enhanced Retirement Sums, which determine how much you can withdraw at 55 and what your future CPF LIFE payouts look like. TFC's own explainer on [Basic Retirement Sum and retirement age in Singapore](https://www.thefinancialcoconut.com/blog/singapore-basic-retirement-sum) breaks down the tiers and payout mechanics in plain terms. For a more sceptical look at how much CPF alone can realistically fund in retirement, former CPF Deputy CEO Chin Heng Soh shared his own strategy on [Chills with TFC episode 227](https://www.thefinancialcoconut.com/blog/chillswithtfc-227), covering CPF, SRS and the mortgage and property trade-offs that come with it. ## In summary The CPF Board has extended the 4% interest rate floor on Special, MediSave and Retirement Account savings from end-2026 to end-2027, while OA and HDB loan rates hold at 2.5% and 2.6% for Q4 2026. Even after T-bill yields climbed to a 2026 high of 1.92% following the Fed's September rate hike, CPF's guaranteed return remains well ahead for long-term retirement money. Want more of these updates as they happen? Follow The Financial Coconut Podcast and join the community via [linkin.bio/thefinancialcoconut](https://linkin.bio/thefinancialcoconut). ## FAQ 1. **What is CPF's 4% interest rate floor?** A government guarantee that Special, MediSave and Retirement Account (SMRA) savings earn at least 4% per annum, even if the formula-linked rate would otherwise be lower. 2. **How long will the 4% CPF floor last now?** The CPF Board announced on 22 September 2026 that the floor is extended through 31 December 2027, a year longer than the previous guarantee. 3. **Are CPF Ordinary Account and HDB loan rates changing in Q4 2026?** No. For 1 October to 31 December 2026, OA stays at 2.5% per annum and the HDB concessionary loan rate stays at 2.6% per annum. 4. **Is CPF's rate still better than T-bills or Singapore Savings Bonds?** For money you will not touch before 55, yes. Even after the 6-month T-bill's cut-off yield climbed to 1.92% at its 24 September 2026 auction, that is still well below the 4% CPF floor. T-bills and SSBs suit shorter-term cash you may need sooner. ### References - [Government extends 4% interest rate floor on Special, MediSave and Retirement Account monies until 31 December 2027](https://www.cpf.gov.sg/member/infohub/news/news-releases/government-extends-4-per-cent-interest-rate-floor-on-special-medisave-and-retirement-account-monies-until-31-december-2027) CPF Board, Government extends 4% interest rate floor on Special, MediSave and Retirement Account monies until 31 December 2027 - [CPF interest rates from 1 July to 30 September 2026](https://www.cpf.gov.sg/member/infohub/news/news-releases/cpf-interest-rates-from-1-july-to-30-september-2026) CPF Board, CPF interest rates from 1 July to 30 September 2026 - [4% interest rate floor for CPF Special, MediSave, Retirement accounts extended till end-2027](https://sg.news.yahoo.com/4-interest-rate-floor-cpf-034000278.html) Yahoo News Singapore, 4% interest rate floor for CPF Special, MediSave, Retirement accounts extended till end-2027 - [Fed rate decision September 2026: Rates rise to 3.75%-4%](https://www.cnbc.com/2026/09/16/fed-rate-decision-september-2026.html) CNBC, Fed rate decision September 2026: Rates rise to 3.75%-4% - [Singapore 6-Month T-Bill Result (24th September 2026): S$8.4 Billion Allotted with Average Yield at 1.69%, Median Yield at 1.79% & Cut-Off Yield at 1.92%](https://www.caproasia.com/2026/09/25/singapore-6-month-t-bill-result-24th-september-2026-s8-4-billion-allotted-with-average-yield-at-1-69-median-yield-at-1-79-cut-off-yield-at-1-92/) Caproasia, Singapore 6-Month T-Bill Result (24th September 2026) Let us know what you think about this topic, and what do you want to hear next. 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