Medisave Account (MA)

The Medisave Account (MA) is a mandatory CPF account designed specifically to help Singaporeans save for healthcare expenses, medical treatments, and approved health insurance premiums. MA funds earn a guaranteed baseline interest rate of 4.00% per annum, helping to grow medical savings alongside inflation.

Medisave funds can be used to pay for hospitalizations, day surgeries, outpatient treatments for chronic illnesses, and premiums for national health insurance schemes like MediShield Life and CareShield Life. The MA is subject to a cap called the Basic Healthcare Sum (BHS), set at S$73,500 in 2026. Any contributions that exceed this BHS cap are automatically redirected into the member's Special Account or Ordinary Account.

Real-World Example If a CPF member undergoes surgery that costs S$4,000 and MediShield Life insurance covers S$3,000 of it, the remaining S$1,000 co-payment can be paid directly using their CPF Medisave Account, preventing them from needing to pay out-of-pocket cash.