Can someone shed some light with how the CPF interest applies?

Hey, this is my understanding on how the CPF interest works. But things may have changed since Budget 2023 or via the CPF website. Nevertheless, I hope it helps you.

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The CPF interest rate applies to the balance in your CPF accounts as of December 31st of each year.

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For the Ordinary Account (OA), the interest rate for the current year is 2.5% per annum for members below 55 years old. This means that you will receive 2.5% interest on the balance in your OA account as of December 31st, 2022. The interest rate is applied to the entire balance in your OA account, not just the contributions made in 2022.

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For the Special Account (SA), the interest rate for the current year is 4% per annum for members below 55 years old. This means that you will receive 4% interest on the balance in your SA account as of December 31st, 2022. The interest rate is applied to the entire balance in your SA account, not just the contributions made in 2022.

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For the Medisave Account (MA), the interest rate for the current year is 4% per annum for members below 55 years old. This means that you will receive 4% interest on the balance in your MA account as of December 31st, 2022. The interest rate is applied to the entire balance in your MA account, not just the contributions made in 2022.

The interest is applied to your entire eligible balance at the end of each month. Eligible balance is based on the balance at the beginning of the month minus any withdrawal from that account during that month.