Securing the best interest rates for your savings is important, especially when considering investments in foreign currencies like the US dollar.
With a wide array of options available, USD fixed deposits stand out as a compelling choice for investors looking to capitalize on favorable exchange rates and higher interest returns.
This comprehensive guide delves into the intricacies of USD fixed deposits in Singapore, providing a detailed analysis of interest rates, bank policies, and the factors influencing these rates to help you make an informed decision.
What are the Interest Rates on USD FDs in Singapore? (January 2024)
3-month Annualized Interest Rates for USD Fixed Deposits
| Banks | Annualized interest rates | Minimum deposit amounts in USD unless stated otherwise |
|---|---|---|
| Bank of China | 4.80% | 2,000 |
| DBS(2-month) | 5.08% | SGD5,000 or equivalent |
| DBS | 4.87% | SGD5,000 or equivalent |
| CIMB | 4.35% | 10,000 |
| HL Bank | 4.60% | 50,000 |
| ICBC | 4.85% | 500 |
| Maybank | 4.70% | 10,000 |
| OCBC | 4.60% | 5,000 |
| State Bank of India | 5.40% | 25,000 |
| UOB(2-month) | 4.85% | 50,000 |
| UOB | 4.85% | 50,000 |
6-month Annualized Interest Rates for USD Fixed Deposits
| Banks | Annualized interest rates | Minimum deposit amounts in USD unless stated otherwise |
|---|---|---|
| Bank of China | 4.75% | 2,000 |
| DBS | 4.54% | SGD5,000 or equivalent |
| CIMB | 4.15% | 10,000 |
| HL Bank | 4.51% | 50,000 |
| ICBC | 4.85% | 500 |
| Maybank | 4.60% | 10,000 |
| OCBC | 4.26% | 5,000 |
| State Bank of India | 5.25% | 25,000 |
| UOB | 4.34% | 5,000 |
| UOB | 4.65% | 100,000 |
| RHB | 4.59% | SGD5,000 or equivalent |
12-month Annualized Interest Rates for USD Fixed Deposits
| Banks | Annualized interest rates | Minimum deposit amounts in USD unless stated otherwise |
|---|---|---|
| Bank of China | 4.55% | 2,000 |
| CIMB | 4.00% | 10,000 |
| ICBC | 4.60% | 500(e-banking) |
| HL Bank | 4.44% | 50,000 |
| State Bank of India | 4.50% | 5,000 |
| RHB | 4.44% | SGD5,000 or equivalent |
| UOB | 4.40% | 100,000 |
| UOB | 4.10% | 5,000 |
Analysis: Top 3 Banks With the Best Fixed Deposit Rates
The USD fixed deposit interest rates are changing according to economic and other domestic and international conditions. Besides interest rates, you should consider other factors like tenures and minimum requirements.
| Tenure | Top 3 Banks | Annualized Interest Rate | Minimum Deposit Requirement |
|---|---|---|---|
| 3 months | State Bank of India | 5.40% | USD 25,000 |
| DBS | 4.87% | SGD 5,000 (USD 3,760) | |
| ICBC | 4.85% | USD 500 | |
| 6 months | State Bank of India | 5.25% | USD 25,000 |
| ICBC | 4.85% | USD 500 | |
| United Overseas Bank | 4.65% | USD 100,000 | |
| 12 months | ICBC | 4.60% | USD 500 (e-banking only) |
State Bank of India: Best for 3-month interest rate rate
The State Bank of India offers the highest rate of 5.40%. However, a customer needs a minimum of USD 25,000 to benefit from the perk.
On the other hand, DBS offers a lower minimum of SGD 5,000(equivalent to about USD 3,760) for an annualized interest rate of 4.87%, a little below the 5.40% offered by the State Bank of India.
If you want to have a much lower requirement, ICBC provides you with a minimum of USD 500 and a descent rate of 4.85%.
State Bank of India: Best for 6-month interest rates
The State Bank of India still holds the highest position, offering a 5.25% annualized interest rate, though it requires a higher entry bar of USD 25,000. Depositors with lower amounts can choose ICBC with a 4.85% interest rate, requiring USD 500 only. Traditional clients may like the United Overseas Bank(UOB) offering a rate of 4.65% and calls for at least USD 100,000 to start.
ICBC: Best for 12-month interest rate
ICBC grabs the helm of the 12-month interest rate for USD fixed deposit rates. What distinguishes it from other banks is dual regarding the interest rate and the minimum deposit requirement.
The bank provides a top rate of 4.60% and the lowest minimum of USD 500 only, suiting a broad client base. However, ICBC offers it through e-banking only.
Additional tip:
If you have a shorter horizon than 3 months before using the funds, DBS’s 2-month deposit offers a reasonable annualized rate of 5.08% with a modest minimum of SGD 5000 to begin.
How to Place a USD FD in DBS
Like other foreign currency time deposits, DBS offers a fast-track way to open a multiple-currency fixed deposit account.
You must be 18 years old and a permanent resident or citizen of Singapore before being eligible to open an account.
Mobile application process
- Download the DBS Digibank mobile app and register for online banking.
- Log in to your account on the digital platform and tap on “More.”
- Tap “Deposit Account” under the “Apply”
- Choose “Fixed Deposit Account.”
- Select a “Reference Account” for your address and tap “Next.”
- Choose a “Singapore Dollar Deposit,” allowing you to select Singapore or US dollars during the application process.
- Select your reference number for signature, acknowledge the agreement, and click “Next.”
- Ensure all details are correct and tap “Submit” to complete the application.
FAQs
1. What is the interest rate on USD FD in Singapore?
As a foreign currency FD, the USD interest rates range from 4.60% for 12 months to 5.40% for 3 months, depending on minimum deposit requirements set by various banks. You should check them before opening an account.
2. How do I place a USD FD in Singapore?
You must be 18 at least and a permanent resident and citizen of Singapore. You can download a mobile DBS digital app and register online with it. The last step is to complete the process of making a fixed deposit in USD.
3. What is the interest rate on USD in UOB, Singapore?
The interest rates offered by United Overseas Bank (UOB) in Singapore for USD fixed deposits vary depending on the tenure and the minimum deposit amount required. Here’s a breakdown of the annualized interest rates across different tenures:
- For short-term deposits with tenures of 2 and 3 months, UOB offers an interest rate of 4.85%, requiring a minimum deposit of USD 50,000.
- At the 6-month tenure, the rates differ based on the deposit amount: 4.34% for a minimum of USD 5,000 and 4.65% for a minimum of USD 100,000.
- For longer-term deposits of 12 months, the interest rates are 4.10% for a minimum deposit of USD 5,000 and 4.40% for a minimum deposit of USD 100,000.
4. Can I deposit USD in Singapore?
Yes, you can deposit multiple currencies like GBP, JPN, EURO, AUD, CAD, and other international currencies besides USD and SGD.
5. What are dual currency investments in Singapore?
Dual currency investments are products banks offer that allow you to benefit from deposit interests and gains(if any) from exchange rate fluctuations.
Features:
- Two currencies: One is the base currency(usually the Singapore dollar) you deposit, and the other is the currency, e.g., USD, EUR, GBP, or Yen, you will withdraw on expiry.
- Investment horizons: A specific investment term ranges from a few weeks to a year.
- Target exchange rate: A specified exchange rate is agreed upon for currency conversion on expiry.
- On maturity: You have 2 options on the expiry date: 1. Choose to receive the principal with interest income in the base currency, or 2. Select the alternate currency to receive the principal and interest income.
Dual currency investments combine the features of a foreign currency fixed deposit with currency exchange speculation, leading to greater potential returns and risks.
Final Thoughts
In conclusion, when considering USD fixed deposit rates in Singapore, it’s essential to assess your investment goals, risk tolerance, and preferred tenure. Whether you prioritize short-term gains, seek stable long-term returns or value flexibility, there are options available from reputable banks.
Key Takeaways
- SBI for Short-Term Gains: State Bank of India (SBI) offers competitive rates for short-term deposits (5.40% for 3 months, 5.25% for 6 months) with reasonable minimums.
- ICBC for Longer Term Returns: Industrial and Commercial Bank of China (ICBC) provides attractive rates for 12-month deposits (4.60%) with accessible minimums.
- DBS for Flexibility: DBS Bank offers flexible options across durations and minimum requirements, catering to diverse investor needs.
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