7 Best Fixed Deposit Rates in Singapore (December 2021) — DBS, CIMB & More - Yahoo Singapore News

Fixed deposit (sometimes called time deposit) accounts are low-risk investments that earn you interest over a fixed commitment period. You don’t need to do anything to earn this interest, just park your money with a bank. Think of it like mold on a piece of bread. Just leave it out in the open and mold will grow — FREE! — on your bread for you.
Seriously, though, fixed deposits are great if you have a substantial amount of money lying around and you don’t want to risk investing it. Fixed deposits are an extremely low risk way to grow your money.
The downside is that their returns aren’t so great. In pre-Covid times, it was possible to earn up to 2% p.a. on a fixed deposit, but these days, fixed deposit interest rates remain low (although they might still be better than savings accounts).
We’ve picked the highest fixed deposit rates for SGD in attainable deposit amounts (i.e. $50,000 and below).
Bank/financial institution
Min. deposit amount
Tenure
Interest rates
CIMB
$10,000
18 months
0.8% p.a.
Hong Leong Finance
$20,000
36 months
0.9% p.a.
DBS
$1,000
8 months
0.6% p.a.
ICBC
$500
12 months
0.6% p.a.
Maybank
$1,000
36 months
0.6% p.a.
UOB
$20,000
10 months
0.5% p.a.
RHB
$20,000
12 months
0.68% p.a.
OCBC
$20,000
12 months
0.4% p.a.
Standard Chartered
$25,000
8 months
0.45% p.a.
HSBC
$30,000
9 months
0.4% p.a.
Note that most of these promotional interest rates, which change monthly and the bank can change the rates anytime. The exception is DBS’ fixed deposit rate, which is non-promotional.
CIMB fixed deposit rate
Interest rate
0.8% p.a.
Deposit amount
Min. $10,000
Tenure
18 months
Malaysian bank CIMB tops the fixed deposit chart for the month with their 0.8% p.a. promotion if you have a CIMB FastSaver account (highly recommend signing up for it, it’s the best savings account there is!). If you’re not a CIMB Preferred customer, its rates are still quite competitive, at 0.75%, which is higher than all other banks listed here!
This promo is for deposits of at least $10,000. However, to enjoy this rate, you need to lock it up for 18 months. This promo extends to both new and existing CIMB customers.
Hong Leong Finance fixed deposit rate
Interest rate
0.9% p.a.
Deposit amount
Min. $20,000
Tenure
36 months
Apart from the big banks like DBS, UOB and OCBC, the fixed deposit aficionado should also look at non-bank financial institutions like Hong Leong Finance as they also offer promotions. They may not be quite as risk-free as banks, though.
This month, Hong Leong is offering 0.9% for 36 months, 0.8% p.a. for 24 months, or 0.6% for 12 months, but it also requires a significant sum of $20,000, and this promotion might not last after its Deepavali promotion.
Before you lock up that much in a fixed deposit, make sure you have sufficient emergency funds first.
DBS fixed deposit rate
Interest rate
0.6% p.a.
Deposit amount
$1,000 to $19,999
Tenure
8 months
The current highest DBS fixed deposit rate of 1.3% p.a. is considered sky-high by today’s standards. However, it’s only available for those with existing DBS fixed deposits and are due for renewal.
If you’re opening a new fixed deposit account, the highest you can go is 0.6% p.a. for 8 months. The only consolations are that the lock-in period is relatively short, and the minimum of $1,000 is quite a manageable amount.
Total Interest Earned
Total Interest Earned

DBS Singapore Dollar Fixed Deposit

Min. Deposit

Tenure

Interest Rate (p.a.)

Total Interest Earned

Read More
More Details
Key Features
Low minimum replacement of S$1,000 with tenures ranging from 1 month to 36 months
Access credit facilities secured against your deposit
See all card details
ICBC fixed deposit rate
Interest rate
0.6% p.a.
Deposit amount
Min. $500
Tenure
12 months
It used to be that you needed at least $20,000 lying around in order to benefit from the higher promotional interest rates. However, now that the general rates have gone down, suddenly the lower-commitment options are a lot more competitive.
All the above fixed deposits have pretty low barriers to entry, but Chinese bank ICBC takes the cake by requiring just a $500 minimum deposit.
You get an okay-ish 0.6% p.a. (if you apply for this fixed deposit online) with a commitment period of 12 months.
Maybank fixed deposit rate
Interest rate
0.6% p.a.
Deposit amount
Min. $1,000
Tenure
36 months
You can earn 0.6% p.a. with Maybank’s Singapore Dollar Time Deposit. Unfortunately you have to leave it in for 36 months (3 whole years!) to earn that measly 0.6% p.a.
If you don’t want to commit for the time it takes to build a BTO flat, there are shorter commitment fixed deposits like 0.5% for 24 months or 0.4% for 18 months.
Total Interest Earned
Total Interest Earned

Maybank Singapore Dollar Time Deposit

Min. Deposit

Tenure

Interest Rate (p.a.)

Total Interest Earned

Read More
More Details
Key Features
Low minimum replacement of S$1,000 with tenures ranging from 1 month to 36 months
Access overdraft Facilities
Enjoy auto-renewal
See all card details
UOB fixed deposit rate
Interest rate
0.5% p.a.
Deposit amount
Min. $20,000
Tenure
10 months
Right now, local bank UOB is offering only 0.5% p.a. on their 10-month fixed deposits. The saving grace is that the lock-in period is relatively short.
Note that if you have an UOB fixed deposit that’s maturing this month, UOB will auto-renew your account at the current “promotional” rate. You might want to check and update your standing instructions.
Total Interest Earned
Total Interest Earned

UOB Singapore Dollar Fixed Deposit

Min. Deposit

Tenure

Interest Rate (p.a.)

Total Interest Earned

Read More
More Details
Key Features
Interest paid annually for 24 and 36 month tenures
Access overdraft facilities
Enjoy auto-renewal
See all card details
RHB fixed deposit rate
Interest rate
0.55% p.a.
Deposit amount
Min. $20,000
Tenure
12 months
If you have $20,000 to spare, another fixed deposit promo to consider is with Malaysian bank RHB. Do note that the 0.55% rate advertised on their website is only applicable if you are an RHB Premier customer.
Total Interest Earned
Total Interest Earned

RHB Singapore Dollar Fixed Deposit (Premier Banking)

Min. Deposit

Tenure

Interest Rate (p.a.)

Total Interest Earned

Read More
More Details
Key Features
Offer of $60 shall be credited into the account for an amount of $200K and above. This offer is valid till the end of Aug ’21.
For other tenures, kindly refer to the RHB website for the latest rates
Flexible choice of deposit tenure
Enjoy auto-renewal
Terms and Conditions Apply
See all card details
The rest of the banks — OCBC, Standard Chartered and HSBC — are offering even poorer deals on their fixed deposits, which is hardly worth your time.
In fact, you can get 0.3% p.a. on your savings with no lock-in just by opening a regular CIMB FastSaver account.
Of course, banks are notoriously fickle about their interest rates, and all these could easily change next month. For the latest promotional rates, remember to bookmark this page and our MoneySmart fixed deposit comparison page before you commit.
Plus, here’s a quick and easy summary of what you need to know about fixed deposits.
Once an attractive alternative to the 0.05% p.a. interest on savings accounts, fixed deposits are fading from collective memory. Today, every bank in Singapore is competing for your dollar with high interest savings accounts, which may actually offer better returns.
Here are the differences between fixed deposits and savings accounts at a glance:
Fixed deposit
Savings account
Tenure
As low as 3 months, but go for at least 12 months for better rates
None
Interest rate
The longer the tenure, the better the interest rate
Usually the same regardless of tenure
Amount to deposit
Fixed amount, usually at least $10,000
Smaller initial deposit and minimum monthly balance ($500 to $3,000)
Currency
SGD by default, but some banks offer higher interest rates for foreign currency
SGD by default. There are a few multi-currency accounts, but no difference in interest rate
Can you withdraw?
Contrary to popular belief, yes, but you lose the interest
Yes, no impact on interest, but don’t fall below the minimum balance
Interest payments
Quarterly or annually
Monthly
Risk level
Virtually risk-free, insured up to $75,000 by Singapore Deposit Insurance Corporation (SDIC)
In an earlier article, we compared the Singapore Savings Bonds to fixed deposits. There are a few key distinctions between these virtually risk-free investment vehicles.
First, interest rates. Believe it or not, fixed deposit interest rates are actually higher than SSBs. The March 2021 issue of SSBs offers a measly 0.35% p.a. interest average return after the first 2 years… and you thought the fixed deposit interest rates were low.
Next, entry point. It takes just $500 to invest in Singapore Savings Bonds, which is lower than the $1,000 or more for most fixed deposits. That said, ICBC fixed deposits only require $500 to start. (On the flip side, there’s a cap of $200,000 you can put into Singapore Savings Bonds. There’s no cap for fixed deposits.)
Finally, tenure. Fixed deposits are shorter term investments. After the lock-in period is over, you should shop around again for another place to park your money.
With SSBs, however, the interest rate climbs every year, so the longer you keep the money in there (up to a maximum of 10 years) the more you get. At the same time, SSBs have higher liquidity than fixed deposits. You will not be penalised if you withdraw your money at any point. You do have to pay a $2 transaction fee each time you buy or redeem a bond, though.
Know anyone who likes to park their cash in fixed deposits? Share this article with them.
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Original article: 7 Best Fixed Deposit Rates in Singapore (December 2021) — DBS, CIMB & More.
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