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Foundation Layer

MediSave

Type

Savings Account

Interest

4% p.a.

Status

Mandatory

MediSave is Singapore's national medical savings scheme. It helps CPF members set aside part of their income for future healthcare expenses and insurance premiums, providing a foundation for healthcare financing.

01 / The Basics

What is MediSave?

Singapore's national medical savings scheme for healthcare financing.

MediSave is Singapore's national medical savings scheme. It helps CPF members set aside part of their income for future healthcare expenses and insurance premiums.

Part of your CPF contributions automatically goes into your MediSave account, which earns interest and can be used to pay for approved healthcare expenses for you and your family members.

Key Characteristics

Mandatory - part of CPF contributions
Interest-earning - 4% p.a. (extra 1% on first $60K)
Tax-free - interest earned is not taxable
Family use - can pay for dependants' expenses

Foundation layer: MediSave is the base of Singapore's healthcare financing system. It funds your insurance premiums and covers approved medical expenses.

02 / Coverage Details

What MediSave can be used for

Approved healthcare expenses for you and your family.

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Hospitalisation Expenses

Hospital bills for you and your dependants, including room charges, treatment, and surgery costs

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Day Surgery

Approved outpatient surgical procedures that don't require overnight stay

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Chronic Disease Management

Treatment for diabetes, hypertension, and other chronic conditions under approved programs

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Vaccinations & Screenings

Preventive care including vaccinations, health screenings, and health check-ups

Other Approved Uses

Maternity expenses Assisted reproduction Long-term care Dental procedures Traditional Chinese Medicine Hearing aids

What MediSave cannot be used for

Cosmetic procedures
Non-approved treatments
Experimental procedures
Non-medical expenses
Expenses already covered by insurance
Over-the-counter medications

03 / Premium Payments

Insurance premiums payable by MediSave

Use your MediSave to pay for approved insurance premiums.

MediShield Life

National health insurance for all Singaporeans/PRs

Integrated Shield Plans

Enhanced coverage from private insurers

CareShield Life

Long-term care insurance premiums

Selected Life Insurance

Term/whole life with MediSave-approved components

Why pay premiums with MediSave?

Preserve Cash

Keep your cash for other needs

Tax Benefits

MediSave interest is tax-free

Purpose-Built

Designed for healthcare expenses

04 / Important Numbers

Key figures and limits

Understanding MediSave thresholds and interest rates.

$77,500
Basic Healthcare Sum (2026)

Target amount for healthcare needs

4%
Interest Rate

+ extra 1% on first $60K

Tax-Free
Interest Earned

All interest is not taxable

Withdrawal Limits

Daily withdrawal limit $200
Annual withdrawal limit $5,000
Hospital bills Up to actual cost

Contribution Rates

Age 35 & below 8% of wages
Age 35-45 9% of wages
Age 45-50 10% of wages
Age 50+ 10.5% of wages

05 / Best Practices

Strategic use of MediSave

How to optimize your MediSave for long-term healthcare needs.

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Pro Tip

MediSave should be viewed as risk funding, not emergency cash. Overdrawing it early increases long-term healthcare vulnerability. Use it strategically to pay insurance premiums rather than depleting it on ad-hoc expenses.

Common Mistakes

Depleting MediSave on small expenses
Not using it to pay insurance premiums
Withdrawing cash unnecessarily
Not monitoring balance regularly

Best Practices

Use for insurance premiums first
Preserve balance for major expenses
Let interest compound over time
Top up if possible for higher interest

How MediSave fits into healthcare financing

MediSave is the foundation layer that funds:

MediShield Life

Base insurance

Integrated Shield

Enhanced coverage

CareShield Life

Long-term care

Medical Bills

Direct expenses

Optimize your MediSave strategy

Understanding how to strategically use MediSave can help you maximize your healthcare protection while preserving your savings for future needs.

Understanding MediSave helps you make informed decisions about healthcare financing.

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