# CPF Ordinary Account (OA)

- Topic: CPF & housing
- Last updated: 6 Nov 2026
- Fact-checked against official government sources: 6 Nov 2026
- Canonical URL: https://propertymeter.sg/glossary/cpf-ordinary-account/

## What is the CPF Ordinary Account (OA)?

The CPF Ordinary Account (OA) is the part of your Central Provident Fund savings that you can use to buy a home and repay a housing loan. It earns at least 2.5% a year, set by law. Money you use for property must be refunded to your CPF account, with accrued interest, when you sell.

## Key facts

- **Interest rate (1 Oct to 31 Dec 2026):** 2.5% a year
- **How the rate is set:** 3-month average of major local banks' interest rates, reviewed quarterly, with a legislated minimum of 2.5%
- **Extra interest (below 55):** 1% on the first $60,000 of combined balances, with the OA part capped at $20,000; paid into the Special or Retirement Account
- **Housing use capped by:** The valuation limit and withdrawal limit, and the remaining lease
- **HDB loan rate:** Pegged at 0.1 percentage point above the OA rate
- **On sale:** Refund the OA money used plus accrued interest

## How the OA works for housing

Part of every CPF contribution goes into your Ordinary Account. You can use it to:

- pay part of the price, above any minimum cash portion; and
- make monthly loan repayments.

How much you can use depends on the property's price, its valuation and its remaining lease. See [valuation limit](https://propertymeter.sg/glossary/valuation-limit/) and [withdrawal limit](https://propertymeter.sg/glossary/withdrawal-limit/).

## CPF interest rates, 1 October to 31 December 2026

| Account | Rate a year |
| --- | --- |
| Ordinary Account | 2.5% |
| Special, MediSave and Retirement Accounts | 4% |

Extra interest is paid on top: below age 55, 1% on the first $60,000 of combined balances (OA capped at $20,000). From 55, it is 2% on the first $30,000 and 1% on the next $30,000, with the same OA cap. Extra interest on OA money is paid into your Special or Retirement Account.

## Example

You use $200,000 from your OA towards a home. That money no longer earns OA interest in your account. When you sell, you must put back the $200,000 plus the interest it would have earned. If it had all been used at once and the rate stayed at 2.5%, the [accrued interest](https://propertymeter.sg/glossary/accrued-interest/) after 10 years would be about $56,017.

## Common mistakes

- **Draining the OA to zero.** Keep a buffer for loan repayments if your income drops.
- **Forgetting accrued interest.** Your sale proceeds go to the CPF refund before you receive cash.
- **Ignoring the remaining lease.** If the lease can't cover the youngest buyer to age 95, CPF usage is pro-rated.

## Frequently asked questions

### Can I use my OA for the downpayment?

Partly. For a private property with a bank loan, a minimum part of the price must be paid in cash: 5% of the lower of the price or valuation for a first loan at 75% LTV. The rest of the downpayment can come from your OA.

### Is it better to pay my loan with OA savings or cash?

It's a trade-off. Every dollar you use from CPF stops earning CPF interest, and you must refund it with accrued interest when you sell. Using cash keeps more in your OA earning at least 2.5% a year.

### What is the HDB loan interest rate?

HDB's concessionary loan rate is pegged at 0.1 percentage point above the prevailing OA rate and reviewed quarterly. With the OA at 2.5%, it is 2.6%.

## Sources

1. [Earning attractive interest](https://www.cpf.gov.sg/member/growing-your-savings/earning-higher-returns/earning-attractive-interest) (CPF Board)
2. [What are the CPF interest rates?](https://www.cpf.gov.sg/service/article/what-are-the-cpf-interest-rates) (CPF Board)
3. [How much CPF savings you can use for your home purchase](https://www.cpf.gov.sg/member/infohub/educational-resources/how-much-cpf-savings-you-can-use-for-your-home-purchase) (CPF Board)
4. [Housing loan from HDB](https://www.hdb.gov.sg/buying-a-flat/flat-grant-and-loan-eligibility/housing-loan/housing-loan-from-hdb) (HDB)
5. [Buying a property: how much can you afford?](https://www.moneysense.gov.sg/buying-a-property-how-much-can-you-afford/) (MoneySense)

---
Source: PropertyMeter (https://propertymeter.sg/glossary/cpf-ordinary-account/). General information only, not financial, legal or tax advice.