With fixed deposits, you get to earn interest whenever you deposit money in the bank over a duration. The bank will pay out with interest either quarterly or annually. The rate at which you earn a fixed deposit is determined each month, and it fluctuates depending on when you open the account and the interest rate you receive. Tenures vary from one month to four years, with higher interest rates given to longer tenures of two to three years.
If you are looking for the best deposit rates in Singapore, we have a list of banks that offer great interest rates with the most reasonable time intervals.
What are Fixed Deposits?
Fixed deposits, also known as FDs, are investments offered by banks and non-banking financial organizations (NBFC) to help customers save money. You may invest a significant amount of money at a certain interest rate for a predetermined length of time with an FD account. At the conclusion of the term, you will receive both the principal and the interest.
The appeal of FDs lies in their simplicity, safety, liquidity, transparency and stability. However, despite being so simple to understand, many investors are often confused about what they can do with their fixed deposits after they have reached maturity.
Key features:
- Fixed deposit accounts at a set rate of interest are insured for the interest rates, regardless of market fluctuations.
- The interest you earn is paid either at maturity or on a regular basis depending on your selection.
- You aren’t allowed to withdraw the money before it matures. If you do, you’ll be penalized.
- You get the benefits of their exclusive time deposit as long as you meet the prerequisites and let the money mature.
Why You Should Consider Fixed Deposits
You may argue that an FD is better than a savings account and you may be right. After all, the maturity rate for the FD means you win in the long-term run with profits. Fixed deposits progressed over decades into safely versatile and flexible financial methods that offer great benefits, especially in Singapore.
You can open an FD in as little as a few clicks or by visiting your local branch. You don’t have to worry about it until it matures. You may choose to automatically renew or receive the maturity payment into your account when you set the maturity instructions. Once your account matures, you can receive the money into your current or savings account. It’s a hassle-free investment with very low risks.
Additionally, you will earn interest not only on the original amount but also on the interest you generate if you pick an FD with a reinvestment option. In other words, you will get interest not just on the principal but also on the accrued interest.
10 Banks with the Best Fixed Deposits
Now that we have those out of the way, let’s begin with the top 10 banks with the best FDs. Take note that none of these are in particular order.
1. DBS/POSB
| Rollover of Existing Placements | New Placement | |
|---|---|---|
| Interest Rate | 1.3% pa | 0.6% pa |
| Tenure | 18 months | 8 months |
| Minimum Deposit | S$1000 | S$1000 |
DBS/POSB currently offers the highest fixed deposit rates in Singapore at up to 1.3% p.a. However, only DBS/POSB investors with ten-month or longer term deposits can benefit from these higher rates since rollover of existing placements with the same duration is only permitted for nine months and longer term agreements.
There are a few reasons why you should consider opening a fixed deposit account with DBS/POSB.
- First, DBS/POSB offers some of the highest fixed deposit rates in Singapore. You can earn up to 1.3% p.a. on your deposited funds.
- Second, your money is safe and insured. Your principal amount and the accrued interest are both insured by the Singapore Deposit Insurance Corporation (SDIC) for up to S$50,000 per account type and per depositor.
- Third, your money is always accessible. You can easily withdraw your funds at any time before the maturity date, subject to early exit penalties.
- Lastly, DBS/POSB’s FD accounts are highly flexible. You can choose to automatically renew or receive the maturity payment into your account when you set up the maturity instructions upon opening the FD account.
You should keep in mind, however, that DBS/POSB’s interest rates may not always be competitive. Hong Leong Finance currently offers monthly changing fixed deposit rates, so you need to monitor their website regularly for updates. If you’re looking for FD rates that are often higher than DBS/POSB’s rates, consider SSBs instead.
2. Hong Leong Finance
| Interest Rate | 0.85% pa | 0.75% |
|---|---|---|
| Tenure | 2 years | 18 months |
| Minimum Deposit | S$20,000 | S$20,000 |
Commonly, Hong Leong Finance offers monthly changing fixed deposit rates. If you are a new client for a 24-month fixed deposit term, you can earn 0.85% p.a. in interest till 28 February 2022. Additionally, you can claim a 0.75% p.a., rather than the usual 0.80%, for a 12-month FD term during the same period.
Hong Leong Finance’s fixed deposit rate levels are periodically adjusted to reflect business priorities and market conditions, which is why you need to monitor their website regularly to find out what rates are currently on offer. Other FD providers like Singapore Savings Bonds (SSB) also offer more competitive interest rates than DBS/POSB. Learn more about how to start investing in Singapore Savings Bond.
Tip: To beat the interest rate offered by banks and SSB, you can consider buying Singapore Savings Bonds (SSB) instead since they are more competitively-priced FDs that do not require you to lock up your money for a fixed tenure as is the case with DBS/POSB’s fixed deposit accounts. SSB rates are typically higher than fixed deposit rates offered by banks.
You may withdraw from your FD at any time before the maturity date, subject to early exit penalties. However, before you can even earn the benefits, keep in mind that the minimum deposit is rather steep at S$20,000. This is a more ideal choice for high-paying jobs or as long as you meet the required deposit.
3. CIMB
| Interest Rate | 0.8% pa | 0.75% pa |
|---|---|---|
| Tenure | 18 months | 18 months |
| Minimum Deposit | S$10,000 | S$10,000 |
CIMB Singapore offers a variety of fixed deposit products to cater to your needs. You can choose to have your fixed deposit for a short period of time, or you can choose to have it for a longer period of time.
The interest rates on CIMB Singapore fixed deposits are very competitive, and you can choose to have your interest payments paid out monthly, quarterly, semi-annually, or at the end of the fixed deposit term.
You may also reinvest your interest payments back into your CIMB Singapore fixed deposit, which lets your money grow faster. You can open a fixed deposit with CIMB Bank with S$10,000, and you can choose to have the interest paid to you monthly, quarterly, half-yearly or at maturity.
For fixed deposits with terms of 18 months and minimum deposit amounts of S$10,000, you can earn 0.75% p.a. You may get 0.65% p.a. for tenures of 12 months rather than 0.3% p.a., if you do not have S$10,000 on hand to place a bet on.
4. Bank of China
| Interest Rate | 0.7% pa | 0.65% pa |
|---|---|---|
| Tenure | 3 years | 2 years |
| Minimum Deposit | S$10,000 | S$10,000 |
Fixed deposits are one of the most popular investment options in the Bank of China. They offer a variety of fixed deposit products to cater to your needs, and the interest rates are very competitive. They also offer the flexibility to choose the duration of your fixed deposit, so you can decide how long you want to invest your money and receive a guaranteed return.
Primarily, they are offering a 0.7% p.a. interest rate on fixed deposits with a 36-month term. Although this is greater than the typical offered by most banks, having your money trapped in a fixed deposit for three years is an excessively long time. Shorter tenures of 24 months or 12 months will return 0.65% or 0.5%.
BOC’s fixed deposit interest rates are updated every few months and the figures above are based on board rates published on August 30, 2021.
5. Citibank
| Interest Rate | 0.1% pa | 0.08% pa |
|---|---|---|
| Tenure | 6 to 36 months | Less than 6 months |
| Minimum Deposit | S$10,000 | S$10,000 |
Citibank Singapore’s fixed deposit offers you a competitive interest rate that normally ranges from 0.05% p.a. to 0.1%. Commonly, interest rates are bigger compared to other financial institutions, so this is definitely something you should consider when deciding on where to place your money in.
Citibank also offers different options for the amount of time you are willing to invest your money for. You can choose from options ranging from less than 6 months up to 3 years, so this gives you more flexibility and allows you to choose the option that is most suitable for your investment goals.
Apart from offering competitive rates and a number of options for fixed deposits, Citibank Singapore also offers other benefits such as no monthly account fees, free internet banking and a minimum deposit of S$10,000.
6. HSBC
| Interest Rate | 0.5% pa | 0.4% pa |
|---|---|---|
| Tenure | 9 months | 3 months |
| Minimum Deposit | S$30,000 | S$30,000 |
HSBC Singapore offers several deposit solutions to cater for individual needs, from investment planning to reaching key financial milestones. Its fixed deposits are time deposits that let you lock in your funds for a certain period of time at competitive rates.
HSBC’s range of fixed deposits include its Regular Savings Plan, Monthly Income Plan and Children’s Deposit Plan, each designed to help you achieve your financial goals.
HSBC is presently providing a 0.5% p.a. promotional fixed deposit rate and a 0.4% p.a., for a 9-month and 3-month term, respectively, until 31 January 2022 on its Fixed Deposit account with S$30,000 as the minimum deposit requirement. You’ll also receive a 21.88% tax rebate till March 31, 2022 when you purchase an insurance plan within your 3-month FD.
7. ICBC
| Interest Rate | 0.6% pa | 0.55% pa |
|---|---|---|
| Tenure | 1 year | 9 months |
| Minimum Deposit | S$500 | S$500 |
Besides higher rates for FD accounts, here are other features and aspects of these fixed deposit (FD) accounts:
You only need a minimum deposit of S$500. You can choose the tenure of your fixed deposit between one month and ten years.
Instead of an annual bases, ICBC uses a monthly method. This means the longer your chosen tenure, the more interest you earn. Longer tenures also mean higher returns on each deposit as well as for the sum of all accounts held with ICBC Singapore. The bank allows you to extend the tenure of your fixed deposit if you wish to. This does not affect your current interest rate, which remains unchanged at all times until maturity of your original FD term.
Only a minimum sum of S$500 is required for opening an ICBC Singapore Fixed Deposit 2022 account. What’s more, you can enjoy “add-on” deposits of up to S$30,000. This means that if your initial investment is S$15,000 or less, you can add on additional funds in the 3 following months to take advantage of higher interest rates for larger amounts.
You can receive 0.6% p.a. For a one-year FD or 0.55% p.a. for 9 months.
8. OCBC
| Interest Rate | 0.4% pa |
|---|---|
| Tenure | 1 year |
| Minimum Deposit | S$20,000 |
OCBC Bank, one of the biggest local banks in Singapore, launched a series of financial products that can help Singaporean consumers manage their cash flow and save up for their financial goals. One of the most popular product is a fixed deposit with OCBC Bank, which offer flexible interest rates to suit your cash saving need.
Customers with an OCBC Singapore account can earn interest on their deposits if they maintain a balance of at least S$20,000. The bank is currently providing a marketing 0.4% p.a. interest rate on fixed deposits with a 12-month term.
9. RHB
| Interest Rate | 0.55% pa (RHB Premier) | 0.50% pa |
|---|---|---|
| Tenure | 1 year | 1 year |
| Minimum Deposit | S$20,000 | S$20,000 |
The RHB is also offering a promotional rate of up to 0.55% p.a. for fixed deposits with a term of 12 months or more until 31 January 2022. This requires a deposit of at least S$20,000 and you must be an RHB Premier client to take advantage of this offer. Otherwise, you may earn interest of up to 0.50% p.a. for a period of one year, on deposits with a term of 12 months or more under RHB’s Fixed Deposit Promotion
Much like any bank on the list, RHB offers FICS or Free In-Conversion Service upon maturity. It will be given to you, where you can decide on whether you want to make any kind of investment in the market with the same amount of money.
10. Maybank
| Interest Rate | 0.6% pa | 0.5% pa |
|---|---|---|
| Tenure | 36 months | 24 months |
| Minimum Deposit | S$1000 | S$1000 |
Maybank offers a beneficial same-rate-same-tenure policy no matter your deposit amount as long as you have S$1,000. In return, the company provides a guaranteed interest rate on the money that you deposit with them. The interest rate varies based on your initial deposit and the period of time that you have deposited it for.
The highest fixed deposit rate available is 0.6% p.a. for terms of 36 months. The lower your fixed deposit term, the lower the interest rate Maybank provides you with.
Which Bank is the Best for Fixed Deposits in Singapore?
This depends entirely on your patience. Some banks offer 1 year and beyond while others allow you to hold up till just 6 months. You may need to have at least S$1000 if you would like to reap the best percentages in the long term rather than aiming for short profits in less than a year.
It’s best to always research the specific bank you will want to deal with rather than going all-in with one, only to regret your decision later. If you would like a recommendation, then DBS/POSB seems like the most balanced choice as the best fixed deposit rates in Singapore.
Fixed Deposit vs Savings vs Bonds
| FD | Savings | Bonds | |
|---|---|---|---|
| Liquidity | low | high | low |
| Tenure | At least 6 months up to 10 years | anytime | 1 year and more |
| Interest income | Less than 1% | Less than 0.9% | 1% or more per year |
| Risk | low | low | low |
| Minimum Deposit | S$500 or more | As low as S$500 | S$1000 (could be more depending on who you deal with) |
FAQs About Fixed Deposits
1. How to get the maximum returns from a fixed deposit?
The simplest way to get the best returns from an FD is to wait for your investment to mature. Frankly speaking, the return of investment within 6 months up to 3 years is very low. But, if you wait for at least 5 years up to 10 years, you will see a huge interest income.
2. How to apply for FRD in Singapore?
you will need to find an authorized dealer. You can search for one on the MAS website. Once you have found an authorized dealer, you will need to provide the following information:
- Name
- NRIC number or passport number
- Contact information
- Employer’s name
- Investment amount
- Currency of investment
The authorized dealer will help you complete the application and submit it to MAS.
3. What are the requirements to open a fixed deposit account?
In order to open a fixed deposit account in Singapore, you will need to provide your name, contact information, date of birth, race and nationalities, occupation, and annual income. You will also need to provide a copy of your identity card or passport. Your fixed deposit account must be opened in the name of an individual and not a company or trust.
Final Word
A fixed deposit account is a low-risk long-term investment that is most useful for when you want to pass the profits to your immediate family. Whichever bank you trust depends entirely up to you.
- Fixed deposits are offered by banks, but individuals can also open FD with non-banking financial companies
- The tenure of the fixed deposit varies from one bank to another but usually ranges between 6 months to 10 years.
- The money in a fixed deposit cannot be withdrawn before the tenure ends without attracting penalties such as lower interest rates and even penalty in some cases.
- Fixed deposits are not as liquid as savings accounts, but they are safer than taking an exposure to the equity markets through investing in stocks.
- The interest rate offered on a fixed deposit is usually higher than that offered on a savings bank account.
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