Beginners’ Guide To Best Fixed Deposits In Singapore

Putting your money in a fixed deposit is one way to earn guaranteed returns that are usually higher than normal savings accounts, while ensuring that your capital is guaranteed as well.

In Singapore, fixed deposits are as good as risk-free. The Singapore Deposit Insurance Corporation (SDIC) insures up to $100,000 per person per bank in Singapore dollar deposits placed in fixed deposits, as well as savings accounts and current accounts. Of course, Singapore banks are highly regulated and well-capitalised in the first place.

Read Also: 6 Investments In Singapore That Provide Guaranteed Principal And Returns

Which Bank Offers The Best Fixed Deposit Interest Rates?

This is a little tricky to determine since banks usually have lower board rates for fixed deposits that don’t change much, but offer more attractive promotional interest rates that can change regularly. You should always take advantage of the prevailing promotional rates when you wish to make your fixed deposits.

The fixed deposit rates can also differ depending on the amount of money you’re depositing and promotional rates typically require an injection of fresh funds. At the same time, you shouldn’t commit more money just because you want to hit the next interest rate tier, but rather, consider how much you plan to set aside, and look for the bank with the best rates at your desired deposit amount.

Here is a good list of banks to get you started, listed in alphabetical order. The rates are based on a 12-month period unless stated otherwise.

Banks
Board Rate
Promotional Rate

Bank of China
1.70% – 1.75%
2.60% – 2.70%
Depends on over-the-counter placement or mobile banking placement

CIMB
0.30% – 0.35%
minimum deposit of $5,000
2.55% – 2.60%
Depends whether personal or preferred banking

Citibank
2.50%
minimum deposit of $10,000
2.45%
(For 3-to-6-month Time Deposits only; minimum deposit of $50,000)

DBS
3.20% – For deposits between $1,000 and $19,999
0.05% – For deposits above $20,000
(nil)

HSBC
0.15%
minimum deposit of $5,000
3.0% – For 24-month Fixed Deposits
2.40% – 3.0%
minimum fresh funds of $30,000 to $100,000 for 4/6/12-month Time Deposit

ICBC
2.25%
minimum deposit of $500
2.30% – 2.45%
minimum deposit of $500 via e-banking

Maybank
0.35%
minimum deposit of $1,000
2.60%
minimum deposit of $20,000

OCBC
0.5%
minimum deposit of $5,000 to $20,000
0.1%
deposits above $20,000
2.20% – 2.60%
For a 6-month/12-month tenure with a minimum deposit of S$30,000 (depending on physical bank branch application or online application)

RHB
0.40%
For deposits between $20,000 and $200,000 
0.55%
For deposits of $200,000 and above
2.50% – 2.75%
For a 3/6/12-month tenure with minimum deposit of $20,000 (based on Personal Banking or Premier Banking status)

Standard Chartered
2.60%
2.60% – 2.80%
For a 3-month tenure with minimum deposit of $25,000, depending on Personal Banking, Priority Banking, Priority Private status)
2.75% – 3.00%
(for 15/18/24/36/48/60-month tenures)

UOB
1.50%
minimum deposit of $5,000
2.50% – 2.70%
(for a 6/10-month tenure with a minimum fresh fund deposit of $10,000)

Rates are accurate as of 15 October 2024.

Read Also: Best Savings Accounts for Working Adults in Singapore

Fixed Deposits Offered By Robo Advisors

In addition to banks, robo-advisors in Singapore have also begun offering investors another way to invest in fixed deposits. Currently, two robo advisors, StashAway and Syfe, offer access to fixed deposit products on their platforms.

Tenor
StashAway SimpleTM Guaranteed
Guaranteed Rates (p.a.)
Syfe Cash+ Guaranteed
Guaranteed Rates (p.a.)

1-Month
3.1%
–

3-Month
3.2%
3.2%

6-Month
3.0%
3.0%

12-Month
2.8%
2.8%

Rates are accurate as of 15 October 2024

One clear distinction that robo advisors have over bank fixed deposits is the lack of minimum or maximum deposits required to earn the offered interest rates.

This helps to make fixed deposits more accessible to investors with varying investment amounts, as well as eliminate any need to go through hoops, like bringing fresh funds for each deposit renewal.

This feature also allows investors to create a bond ladder with different maturity periods by taking advantage of the multiple portfolios that robo advisors allow us to create. This may not be easily created with bank fixed deposits, which may impose a high minimum deposit amount, especially for promotional rates.

However, it’s important to note that we will not be able to prematurely withdraw our fixed deposits with robo advisors. This is in contrast to banks, where it is possible but with a penalty fee. Therefore, if we were to invest in fixed deposits via robo advisors, we should only invest monies that we are willing to lock-up for the fixed period.

As robo-advisors are not part of the deposit insurance scheme, our fixed deposit placed with robo-advisors may not be entirely covered by SDIC.

Read Also: Guide To Using Robo Advisor Fixed Deposits

Things To Take Note Before Placing A Fixed Deposit

After selecting the bank where you wish to place your money, you’ll also need to decide on the tenure (duration). In most cases, you can also decide on the renewal action after your fixed deposit reaches maturity, including automatically making a new fixed deposit with your principal and interest (rolling over), just rolling over your principal and withdrawing your interest, or withdrawing both principal and interest.

Finally, you should find out exactly what charges and fees you will incur if you withdraw your fixed deposit early and how much interest you will receive (if any at all).

Read Also: Complete Guide To Cash Management Accounts In Singapore

Advantages Of Fixed Deposits

Simplicity

The simplicity of fixed deposits makes them popular since you don’t need any skill or experience to earn a regular return from fixed deposits. You give your money to the bank, and they return your principal plus interest after the tenure is up.

Predictable

Fixed deposits can be useful for investors looking to build a foundation of stable assets that guarantee their principal and returns, so they would be in a better position to make higher-risk, higher-return investments like stocks, properties, peer-to-peer lending, or even cryptocurrencies.

Thus, they are useful for sums of money you absolutely cannot afford to lose to the fluctuations of the market, such as money set aside for renovations, education, or a down payment for a car.

Accessible

Fixed deposits can be made with sums of money as little as $500 and with maturity periods of one month to three years. Unlike instruments like SSB or T-bills, where you may be allocated less than what you want to invest when the issuance is oversubscribed, there is no allocation limit with fixed deposits. Also, the maximum deposit cap on fixed deposits is much higher, unlike the SSB, which has an individual limit of $200,000.

Safe

Singapore banking consumers benefit from a tightly regulated banking ecosystem.  In addition, Singapore’s Deposit Insurance Scheme (SDIC) insures up to $100,000 per account for deposits with all full-service banks and financial institutions.

Read Also: Best Savings Accounts In Singapore – If You Don’t Want To Keep Jumping Through Hoops

Disadvantages Of Fixed Deposits

Liquidity

Obviously, you will be giving up liquidity when you place money in a fixed deposit. This means that if you do need that money urgently before maturity, you’ll receive little or no interest. It is worth noting that the amount lost for pre-maturely redeeming your capital is marginal, compared to what you would lose for surrendering other instruments early like endowment plans.

Relatively Poorer Interest Rates

Non-promotional interest rates for fixed deposits are currently relatively low, even compared to virtually risk-free investments like SSB.

Read Also: [2024 Edition] Complete Guide To Buying Singapore Savings Bonds (SSB)

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