Top Up Your MediSave Account: How It Helps, Tax Relief & Practical Tips

If you’ve been thinking about topping up your CPF accounts, here’s a reminder not to forget your MediSave Account (MA). Topping up your MA isn’t just a “nice-to-have” — it’s one of the easiest ways to make sure your future medical bills and insurance premiums don’t derail your finances. Let’s walk through why it’s worth doing, how it helps, and a few things to watch out for.

What is the MediSave Account (MA)?

Your MediSave is the portion of your CPF that’s set aside for healthcare expenses. Think of it as the go-to pot for anything medical. You can use it for:

• Hospitalisation bills
• Approved medical insurance premiums (MediShield Life, Integrated Shield Plans)
• Outpatient treatments like vaccinations and health screenings
• Long-term treatments such as rehabilitation and palliative care

It’s also useful to know that your MediSave can be used for family members (subject to the usual rules) and accepted at public hospitals and participating private institutions.

Why top up your MA? Three good reasons

1. Boost your MediSave savings

Healthcare costs generally go up as we get older. Topping up your MA now helps you build a healthy buffer so you don’t have to raid your cash savings or retirement funds when medical needs come up. The icing on the cake: MediSave savings earn a risk-free interest rate of 4% per annum, which is higher than most regular savings accounts. That means top-ups compound over time — a simple, low-risk way to grow a healthcare nest egg.

2. Pay your health insurance premiums

MediSave doesn’t just cover hospital bills — it’s also used to pay premiums for MediShield Life, Integrated Shield Plans (IPs), and long-term care schemes like CareShield Life. If you want to keep your cover intact without tapping your cash, topping up MA ensures you have enough to meet premium increases (IPs can come with higher premiums, and national schemes may update benefits and premiums over time).

3. Enjoy tax relief each calendar year

One more practical reason to top up: tax relief. Cash top-ups to MediSave are eligible for tax relief, up to a combined cap of $16,000 per year. The cap is split into a maximum of $8,000 for top-ups to your own accounts and another $8,000 for cash top-ups to eligible loved ones. This cap is shared across top-ups to your Special/Retirement Account and MediSave Account, so plan accordingly.

Who counts as loved ones? Parents, parents-in-law, grandparents, grandparents-in-law, spouse and siblings. Note: to qualify for tax relief when topping up a spouse or sibling, the recipient must have an annual income of $8,000 or less in the preceding year, or be a person with disability.

How to top up (and what you’ll need)

You can top up your MA using the CPF Board’s top-up facility. The process is straightforward: you’ll need the recipient’s NRIC number, and you’ll make the payment using your banking app, payment app or an authentication token. Keep in mind that top-ups are irreversible — so double-check everything before you press send.

Other practical bits to know

• Basic Healthcare Sum (BHS): There’s a maximum amount you can keep in your MA called the Basic Healthcare Sum. It’s an estimate of what you’ll need for subsidised healthcare in old age and is adjusted annually. When you reach 65, your BHS will be fixed for life.
• Top-ups are irreversible: Once you top up, you can’t reverse it. Make sure it fits your financial plan and emergency fund needs before committing.
• Tax relief cap is shared: The $16,000 tax relief cap is shared across top-ups to your Special/Retirement Account and MediSave, so if you’re doing top-ups across accounts, keep track of how much of the cap you’ve used.

Who should consider topping up?

If any of the following sound like you, topping up your MA is worth considering:

• You want to grow a low-risk medical savings pot that earns competitive interest (4% p.a.)
• You prefer to use MA to pay for premiums instead of cash
• You want to claim tax relief for the year and have room under the $16,000 cap
• You want to help parents, grandparents or other eligible loved ones prepare for future healthcare needs

Bottom line

Topping up your MediSave is a practical, low-risk way to protect yourself and your family from rising healthcare costs. Between the steady interest, the ability to fund insurance premiums, and meaningful tax relief, it’s a small move today that can pay off later in peace of mind and financial stability. Just remember the basics: check the Basic Healthcare Sum for your cohort, confirm the recipient’s NRIC, know that top-ups are irreversible, and track your tax relief cap if you’re topping up multiple CPF accounts.

The info here is accurate as of the publication date. If you’re unsure how a top-up fits into your overall finances, consider chatting with a financial adviser or checking the CPF Board’s official resources before you top up.