CPF
CPF MediSave Account (MA)
Your dedicated healthcare savings account, earning a 4% floor for hospital bills, MediShield Life, and approved premiums.
What it is
In plain language.
MediSave is the healthcare leg of CPF. It earns the same guaranteed 4% floor as the Special and Retirement Accounts, and is ring-fenced to pay for approved medical costs across your lifetime.
You draw on MediSave for hospitalisation, day surgery, certain outpatient treatments, and to pay premiums for MediShield Life and approved Integrated Shield plans. It is the account that quietly underwrites a large share of a Singaporean's medical exposure.
Because MA is reserved strictly for healthcare and cannot be spent on housing or general living, it functions as a forced, high-yielding health reserve rather than a flexible savings pot.
How it works
In Singapore, in practice.
A portion of each monthly CPF contribution goes to MA, and that share rises sharply with age, since older members route the bulk of their contributions toward healthcare and retirement. MA balances are capped by the Basic Healthcare Sum, with overflow spilling into SA (or RA after 55).
MA earns the higher of 4% or a pegged formula, tax-free, and benefits from the same extra interest on combined balances. Voluntary cash top-ups to MA can qualify for tax relief, subject to the prevailing personal income tax relief cap.
Withdrawals are made automatically when you use MediSave for an approved bill or to pay an eligible insurance premium. There is no separate product to buy.
Run the numbers
See it in your own figures.
See what investing a fixed amount here every month could grow to, at an illustrative return.
What regular investing could grow to
Investing a fixed amount every month, compounding at an illustrative return. Projected, not guaranteed.
Where it sits
Its place in the instrument map.
A sound plan is built in layers, from a guaranteed base up to small, high-risk satellites. This is the role CPF MediSave Account (MA) plays, and the layers around it.
Small, high-risk positions you could afford to lose entirely.
Direct stocks and REITs held for long-run growth.
Funds, ETFs, and bonds that spread risk across many holdings.
Government-backed income and the SRS tax wrapper.
Guaranteed and liquid: your CPF base and emergency cash sit here.
The trade-offs
What it does well, and what to watch.
Good for
- Everyone, as a forced healthcare reserve
- People who want premiums and hospital bills covered without touching cash
- Savers seeking a 4% floor with tax relief on voluntary top-ups
Watch outs
- MA can only be spent on approved healthcare and insurance, not housing or living costs.
- Once MA hits the Basic Healthcare Sum, further contributions overflow into other accounts rather than growing MA.
- Top-up tax relief is shared within an overall personal relief cap, so the benefit is limited if you already use SRS or RSTU.
In the market
What this looks like.
Real Singapore examples, shown to make the instrument concrete. These are illustrative, not endorsements.
How it connects
Instruments that work with this.
CPF Special Account (SA)
The retirement-focused CPF account earning a 4% floor, locked away to compound until age 55.
Full breakdown CPFCPF Top-Ups (RSTU & MediSave)
Voluntary top-ups to your SA/RA or MediSave that boost retirement and health savings at a 4% floor, with potential tax relief.
Full breakdown CPFCPF Ordinary Account (OA)
The CPF account you can use for housing, insurance, and approved investments, earning a guaranteed 2.5% floor.
Full breakdownSources
Where the facts come from.
- MA guaranteed floor interest rate of 4% per yearSingaporeConfig.cpf.cpfInterestRates.ma
- Age-banded MA allocation, rising steeply with ageSingaporeConfig.cpf.cpfContributionRates
- MediSave uses, Basic Healthcare Sum and withdrawal limitshttps://www.cpf.gov.sg/member/healthcare-financing/using-your-medisave-savings
See where CPF MediSave Account (MA) fits your own plan.
This is educational, not advice. When you want a detailed look at how this fits your situation, a licensed adviser will map it to your income, CPF, and goals.