Almost $17 billion in interest credited to members’ CPF accounts in 2020

Almost $17 billion in interest credited to members' CPF accounts in 2020

Last year, a total of $16.9 billion in interest earned was credited into members’ accounts.

The upward trend to voluntarily top-up accounts continues

Ever since people discovered that is really a great way to build up their retirement funds through its attractive interest rates, there has been a upward trend to top-up CPF accounts. Unlike when people used to rush to withdraw their at 55, the trend now is not to withdraw but to top up, and to delay payout age. This trend looks set to continue, going by what was seen in the past few years.

The excitement has caught on. More than 800 people have even signed up as volunteers in a programme to help spread the good news they discovered about to others and to correct misconceptions.

Last year (2020). a total of 106,700 individuals topped up their own . That’s an increase of more than 40% compared to the previous year. More members are also topping up the accounts of their spouses, parents and parents-in-law. The top-up to retirement accounts went up by almost one billion dollars in 2020, compared to 2019.

Interest rates! The draw of CPF!

interest is computed monthly, compounded and credited yearly. And the interest rates are unbeatable! Don’t believe? Just check the banks’ saving and fixed deposit rates.

Currently, the interest rates are:

  • 2.5% for Ordinary Account (OA),
  • 4% for Special Account (SA),
  • 4% for MediSave.

To enhance the retirement savings of Singaporeans, the Government pays an extra 1% interest on the first $60,000 of your combined balances (capped at $20,000 for Ordinary Account (OA)). This was implemented in 2008.

In 2016, an additional extra 1% interest was introduced on the first $30,000 for members aged 55 and above so that a member’s Retirement Account (RA) earns the following interest rates:

  • 6% for the first $30,000 (4% + 2%)
  • 5% for the next $30,000 (4% + 1%)
  • 4% for the remaining balance
Age Extra Interest (capped at $20,000 for OA
Below 55 years old 1% per annum for the first $60,000
55 years old and above 2% per annum on the first $30,000, 1% per annum on the next $30,000

This means that you earn up to 6% on your retirement savings. ​

The Power of Compound Interest!

Here’s a look at how your money grows with compound interest.

CPF interest rates

With compound interest, your money grows exponentially.


If you’re a self-employed person, it’s time to avail yourself to the benefits of CPF. It’s never too early to start to build up your retirement fund. The earlier you start, the more you gain from the compounding interest rates. There are no hard and fast rules. You can choose to make a one lump sum contribution yearly or several smaller contributions at various times to enjoy the compound interest rates. And tax relief.

Another benefit of voluntary contributions is the tax relief on your voluntary contributions. You enjoy tax relief for up to $7,000 cash top-up to your accounts.

Double your money through dollar-for-dollar Matched Retirement Savings Scheme (MRSS)

Good news are to be shared so that no one misses out on this opportunity. Here’s one more thing to share with you. If you haven’t heard it, there is the Matched Retirement Savings Scheme (MRSS) that is meant to help senior Singaporeans who have yet to meet the Basic Retirement Sum (BRS) save more for retirement.

Check your eligibility at

Here’s how it works. For 5 years from 2021 to 2025, the Government will match dollar-for-dollar, cash top-ups made to members’ Retirement Account – up to an annual cap of $600. If you or your parents are aged between 55 and 70, you qualify for the scheme if you have not been able to set aside the prevailing Basic Retirement Sum. For an annual top-up of $600 (cap), you get another $600 from the government.

Now that you’ve discovered so much about CPF, what are you waiting for? It’s time to take actions to grow your retirement fund. Join the new crowd of the enlightened!

Read also  Grow your CPF with Matched Retirement Savings Scheme; 440,000 members qualify



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