The Best Fixed Deposit Rates in Singapore 2021

The Best Fixed Deposit Rates in Singapore 2021

Fixed deposit also called time deposit is a type of bank account that gives account owners a fixed amount of interest. In exchange, the account owners agree not to withdraw their funds for a certain period of time. Account owners do not need to do anything for their money to earn.

As a result, this type of savings or investment account is favoured by those who have a large amount of money to spare for a long period of time. While fixed deposit accounts do not earn much compared to other forms of investment, it is considered a safe investment.

Average Fixed Deposit Rate

In Singapore, banks offering fixed deposit accounts have different interest rates. These interest rates are dependent on how much the account owner deposited and how long the deposit will stay in the bank. This means that the fixed deposit interest rate dictates how much the account owner will earn.

In most cases, fixed deposit interest rates are usually very low. They are usually under 1%. This interest rate is so much lower compared to other types of investment. If you think that you can live off of this interest rate earning, you are wrong.

Given the low average interest rates of fixed deposits, account owners must regard their fixed deposits as a form of passive income. You will not get rich, but it is a good thing that your deposit account is earning. Also, however little these interest rates of fixed deposits are, they still gave higher interest rates compared to a savings account.

The Best Fixed Deposit Singapore

Bank/financial institutionMin. deposit amountTenureInterest rates
DBS $1,000 18 months1.3% p.a. 
Maybank$25,00024 months1.2% p.a. (iSAVvy)
DBS$1,00012 months1.15% p.a.
DBS $1,000 10 or 11 months1.1% p.a. 
Maybank$1,00024 months1.0% p.a. 
RHB$1,00036 months1.0% p.a. 
DBS$1,0009 months0.95% p.a.
Maybank$1,00018 months0.90% p.a.
Maybank$25,00012 months0.85% p.a. (online iSAVvy)
RHB $1,00024 months0.85% p.a.
RHB $1,00018 months0.75% p.a.
ICBC$50012 months0.75% p.a. (via e-banking) 
Maybank$1,00012 months0.70% p.a.
ICBC$50012 months0.70% p.a. 
ICBC$5009 months0.65% p.a. (via e-banking)
Hong Leong$50,00012 months0.65% p.a.

Disclaimer: Rates change monthly and can be changed by the banks anytime. 

The usual rate is under 1% and can go as high as 1.8 to 2% p.a. Due to the economic downturn, fixed deposit rates remain low. 

How to Calculate the Interest Return on a Fixed Deposit?

After knowing the usual interest rates of fixed deposit accounts, you must also learn how to calculate your potential earnings. Before opening a fixed deposit account in Singapore, you can do the computation so that you can have an idea if this option works for you best. The first thing to do is to identify how much deposit amount you are willing to give. Remember that this deposit amount should not be touched for a specific period of time, usually around 3 months or even 12 months.

The banks multiply the deposit amount by the interest rate, and by the length of time you are willing to keep your deposit with them. It means that your earnings will be computed as the deposit amount x interest rate x months of deposit.  This is basically the formula used by banks to compute your earnings. Note that the interest rate varies from the promotional rates of the banks.

Let’s just say that you have 20,000 dollars to spare as your deposit amount and that you are willing to deposit is as long as 12 months. For the sake of discussion, let’s assume that the interest rate per year is at 1%. So the computation becomes. 20,000 dollars x 1% x  12 = 240 dollars.

The 12 months of your 20,000 dollars in your fixed deposit account would only earn $240. This is a reminder for account holders that the higher deposit amount and the longer time they can keep their money untouched means high income. Also, account holders must look for banks that offer high promotional rates.

Why Open a Fixed Deposit Account

If you have successfully saved and have no plan in the near future to spend this saving, opening a fixed deposit account might be a good decision for you. 

Instead of putting your money on a savings account where your money is basically sleeping and losing its value, you might opt to have a fixed deposit account instead. In this type of account, you can earn a little amount of money from the interest of your deposits. Without doing anything, your money is earning for you.

Also, if you are afraid of risks or do not think that the economy is right for a risky investment, a fixed deposit is a good option. Banks in Singapore offer good rates for money stored in your banks. 

You just have to look for a bank that has good deposit promotions and has awesome interest deals. In this type of account, you can be sure that your fresh funds or your deposits are earning from the fairly reasonable interest rates of banks.

During times of economic crisis, a lot of people in Singapore also choose a fixed deposit account because other forms of investment are simply not possible in these difficult times. Depositing their earnings on a reliable financial institution is one way to keep their finances secure. While doing so, their money is earning from the interest rates imposed by the banks.

Pros and Cons of a Fixed Deposit in Singapore

pros and cons word in the wooden block on duo color surface

Simply put, here are the pros of choosing a fixed deposit account: 

  • It has a higher  interest return compared to a regular savings account. If you are planning to save on your banks, you better choose this option because it will earn you more than other types of savings account. Without basically doing nothing, your money is earning. You just leave your money to your trusted bank and they will do the work for you.
  • Fixed deposits Singapore accounts are safe and do not expose account owners to any type of risk. Being a fixed deposit account owner, you should not fear that you will lose your money overnight. You are guaranteed that your money will earn interest as long as you leave your money to the banks to a given period of time.
  • Starting a fixed deposit account is easy in Singapore. You can invest for as low as $5,000 for as short as 1 month. For young professionals and middle-class, these are enticing options. If you are afraid of using your savings on risky investments, fixed deposits might be best for you.

Note that banks have a varying minimum deposit. If you wish to deposit a small amount fo money, you can look for the bank that offers a very low minimum deposit. For beginners who do not have much experience in fixed deposit accounts or in bank deposits in general, finding for a bank with a low minimum deposit is the best option.

On the other hand, fixed deposit accounts have downsides as well. Here are some:

  • This type of account requires you to not do any type of withdrawal. You are basically locked out of your own money. Even in emergency situations, you cannot spend the money that is already in your bank.
  • Once you do any type of withdrawal before the maturity of your account, you may lose all the interest you earned. This would mean that your years of waiting is put to waste. If you encounter an emergency and badly need cash, you could lose the interest you are supposed to earn. This arrangement is simply impossible for individuals who do not have enough savings for emergency situations.
  • Your money is dependent on a single investment. Instead of using your money to invest in a business or other opportunities, you are basically putting your resources into one basket. If you believe that you have better investment opportunities than a fixed deposit account, this arrangement is not for you.

Eligibility and Requirements

The next things to know now are the eligibility and requirements needed to open a fixed deposit account. Remember that opening a fixed deposit account is similar to doing any transactions with banks. 

You have to present certain requirements to prove to the bank of your sincerity to enter a transaction and contract with them. Also, note that these eligibility and requirements are dependent on a lot of things which means that you have to identify first the category you belong to.

For Singapore citizens and Singapore permanent residents, you only need to submit one requirement. This is your:

  • NRIC.

NRIC stands for the National Registration Identity Card. All Singapore citizens and Singapore permanent residents have this card, so presenting this must not be an issue. Just bring with you your NRIC when you visit the bank.

Meanwhile, foreigners in Singapore have to submit more documents compared to Singapore citizens and permanent residents. They need to present the following documents:

  • Passport
  • Proof of address
  • Employment pass
  • Dependent pass
  • S pass
  • Student pass or long term visit pass

Note that each bank sometimes has certain requirements. This means that it is best to approach  your bank of choice if you truly are determined to open a fixed deposit account. Make sure to submit all the requirements of the bank you chose. 

Also, when applying for fixed deposits, banks in Singapore have allowed for two options. These are:

  1. Bank visits. For the first option, you have to make an appointment at your trusted bank and bring with you your deposits and the required documents.
  2. Online. For the second option, most banks offer OCBC, CIMB, DBS, and Maybank fixed deposit options where a client with an existing savings account or current account can easily create a fixed deposit account with just a few clicks.

One important reminder here is to research how banks have different deals for their fixed deposit accounts. Contact your local banks to know their minimum deposit, deposit promotions, and promotional rates before deciding to open an account. 

Remember, deposit promotions and promotional rates have a lot to do with your earnings. Choosing the bank with the best deposit promotions and other promotions, rates, and deals will benefit you in the long run.


The low-risk nature of fixed deposit accounts in Singapore has made a lot of people looking for best fixed deposit banks. A lot of individuals have seen how fixed deposit accounts offer a safe and secure way of saving their money. Despite the positive attributes of fixed deposits, it is important for people to learn that fixed deposits are not for everyone.

Fixed deposit accounts do not promise wealth. The interest rates of the banks are not enough to ensure account holders instant wealth. 

Also, earnings from fixed deposit accounts really depend on the deposit amount and the length of time the money stays in the bank. This means that those with limited deposits and can only keep their money in banks for a limited amount of time virtually earn nothing from fixed deposit accounts.

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