What is CPF accrued interest? 2026

CPF accrued interest is the interest Ordinary Account savings would have earned had they stayed in CPF instead of paying for a home. When the property is sold, CPF Board requires the principal used plus that accrued interest back — computed at the OA rate of 2.5%, compounded yearly.

Updated 22 Sep 2026 Published 25 Jul 2026 5 min read CPF

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Singapore · accrued interest on SGD 100,000 of OA used for a home

SGD 28,008

after 10 years

Rate2.5% p.a.

Compoundingyearly

Refund after 10 yearsSGD 128,008

After 20 yearsSGD 163,862

Rate applied2.5%the OA floor rate

Compoundingyearlyon the principal withdrawn

RefundP + Iprincipal plus accrued interest

Plus, from 55pledged amountif the property was pledged

Below 55, refund goes toOAnot to the member as cash

Retain at purchaseSGD 20,000HDB loan, at the point of purchase

On this pageWhy it exists Worked example What it means for you Misconceptions Related terms Sources

Key takeaways

CPF savings used for a property are refunded on sale as the principal withdrawn plus accrued interest; a member aged 55 or above who pledged the property to set aside their retirement sum also refunds the pledged amount.
Accrued interest builds at the Ordinary Account rate of 2.5%, compounded yearly — so SGD 100,000 of OA used today is a refund of about SGD 128,008 after ten years and SGD 163,862 after twenty.
Below 55 the refund is credited to the Ordinary Account; from 55 it first tops the Retirement Account up to the required retirement sum, and the balance stays in the OA. It is not paid out as cash.
Where a home is sold at market value and the proceeds do not cover the outstanding loan plus the required refund, only the selling price less the loan is refunded — the shortfall is not topped up in cash. Option money received in cash counts as part of the selling price and must be refunded.
A voluntary housing refund made before any sale reduces what is owed later and starts earning CPF interest again straight away.

Definition

Why CPF charges itself interest

CPF states the reason plainly: savings spent on a home are savings no longer earning retirement interest, so a sale has to restore them. Accrued interest is not a penalty or a loan charge — it is the return the money would have made had it stayed put.

Principal (P)SGD 100,000The OA savings actually withdrawn — downpayment, stamp and legal fees, monthly instalments.

Accrued interest (I)2.5% p.a.Compounded yearly on that principal from the date it was withdrawn until the sale.

Refund on saleP + IPaid from the sale proceeds after the outstanding housing loan, before any cash reaches the seller.

One exception is written into the rules: a member who was 55 or older before 1 January 2013 and had already set aside the Full Retirement Sum by then is not required to refund CPF used before 2013 — only principal used from that date onwards, with its accrued interest.

Worked example

What SGD 100,000 of OA costs over time

A single withdrawal of SGD 100,000 at the 2.5% OA rate, compounded yearly. In practice OA is also drawn monthly for instalments, so the real figure builds from many small withdrawals — the accrued interest calculator handles that.

Held for	Principal	Accrued interest	Refund on sale
5 years	SGD 100,000	SGD 13,141	SGD 113,141
10 years	SGD 100,000	SGD 28,008	SGD 128,008
15 years	SGD 100,000	SGD 44,830	SGD 144,830
20 years	SGD 100,000	SGD 63,862	SGD 163,862

Where the refund goes

Below 55Ordinary Account

From 55RA up to the retirement sum

Thenbalance stays in the OA

From the OA the money can fund another property, stay to earn 2.5%, be transferred to the SA or RA for a higher rate, or — from 55 — be withdrawn.

What it means for you

What it changes about a property decision

Cash from a saleCPF accrued interest calculator

The refund comes out of the proceeds before any cash reaches the seller, so a long-held home financed heavily with CPF can produce far less cash than the headline gain suggests.

Paying with cash insteadMortgage calculator

Servicing instalments in cash leaves OA savings earning 2.5% and creates no accrued interest. CPF frames it as balancing cash against OA use.

Voluntary refundsCPF calculator

Refunding early stops that slice of accrued interest building and puts the money back on CPF interest — CPF notes it also leaves more cash proceeds at the eventual sale.

Keeping a bufferHDB affordability calculator

A member taking an HDB loan may retain up to SGD 20,000 in the OA at the point of purchase; with a bank loan any amount may be retained, and CPF notes that keeping at least that much is what the HDB-loan rule requires. Retained savings earn 2.5% plus the extra 1%.

Selling at a lossCPF accrued interest calculator

If the sale is at market value and falls short of the loan plus refund, only what is left after the loan goes back to CPF. No cash top-up is required.

Common misconceptions

Five things people get wrong

Accrued interest is a fee CPF charges.

It is the interest the savings would have earned in the Ordinary Account. Nothing is paid to anyone — the money returns to the member’s own CPF account.

The refund is paid to me in cash.

Below 55 it goes into the Ordinary Account. From 55 it tops up the Retirement Account to the required sum first, and only the balance stays in the OA where it may be withdrawn.

I can skip the refund if I make a loss.

The refund is still required, but capped: sold at market value, only the selling price less the outstanding loan goes back, with no cash top-up for the shortfall.

The option fee is mine to keep.

Option money received in cash counts as part of the selling price and must be refunded to CPF before the transaction completes.

Accrued interest grows at the SA rate.

It grows at the Ordinary Account rate of 2.5%, because that is the account the money came from.

Sources and reviewChecked against the CPF Board housing pages on 2026-09-22

CPF Board — CPF refund when selling or transferring property — the P + I formula, where the refund goes, shortfalls and option money
CPF Board — Using your CPF to buy a home — what OA savings may be used for and why the refund exists
CPF Board — Retain SGD 20,000 in your OA if you are taking a housing loan — the buffer a buyer may keep and the interest it earns

Official statistics for general information only. Not financial advice.

Sources: CPF Board

This page is provided for educational and informational purposes only. It does not constitute financial advice. All figures and worked examples are estimates for illustrative purposes, are subject to change, and do not reflect any individual’s circumstances. Always refer to the CPF Board and seek independent professional advice before making any financial decisions.