CPF interest is computed monthly, and is credited to your respective accounts by the following year. As the Special Account (SA) amounts transferred to your Ordinary Account (OA) are withdrawable, the funds earn 2.5% interest for the month you turn age 55, in line with the principle that short term funds earn the lower short-term interest rates.
If you wish to earn the higher long-term interest rate, you can transfer your OA savings, which originated from your SA, to your Retirement Account (RA). If you are still receiving monthly employment contributions in your OA after 55, consider setting up monthly recurring CPF transfers from your OA to your RA to earn higher interest on your CPF contributions.
The transfer is irreversible, and will be paid to you as monthly payouts and cannot be withdrawn for other purposes.
