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 mould on a piece of bread. Just leave it out in the open and mould 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 extremely low risk ways to grow your money.
You’ll be happy to learn that the fixed deposit rates are looking up again! Fixed deposit interest rates took a hit during Covid-19 but now the rates are back to pre-Covid days! If you’ve been holding out for the interest rates to pick back up, now might be a good time to park your spare money with a bank.
Contents
Best fixed deposit rates in Singapore
State Bank of India Singapore
Bank of China
Hong Leong Bank
Hong Leong Finance
CIMB
DBS
ICBC
Maybank
UOB
RHB
Standard Chartered
HSBC
OCBC
Fixed deposit vs savings account
Fixed deposit vs Singapore Savings Bonds (SSB)
1. Best fixed deposit rates in Singapore
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
Hong Leong Bank
$50,000
12 months
2.75% p.a.
Hong Leong Finance
$20,000
15 months
2.75% p.a.
Citigold Time Deposit
$50,000
12 months
3.2% p.a.
CIMB
$10,000
18 months
2.85% p.a.
RHB
$20,000
24 months
3.2% p.a.
DBS
$1,000
18 months
1.7% p.a.
ICBC
$500
12 months
2.8% p.a.
Maybank
$20,000
15 months
3.05% p.a.
UOB
$20,000
15 months
3.0% p.a.
HSBC
$30,000
12 months
2.8% p.a.
OCBC
$20,000
12 months
2.6% p.a.
Standard Chartered
$25,000
12 months
2.7% p.a.
Bank of China
$5,000
12 months
2.85% p.a.
State Bank of India
$25,000
18 months
2.57% p.a.
Note that most of these promotional interest rates, which change monthly and the bank can change the rates anytime.
2. State Bank of India Singapore fixed deposit rates
State Bank of India Singapore fixed deposit rate
Interest rate
2.57% p.a.
Deposit amount
Min. $25,000
Tenure
18 months
The State Bank of India Singapore’s interest rate is amongst the highest amongst the banks here with its ongoing promotion of 2.57% p.a. for 18 months (minimum $25,000). If you’re looking for a lower minimum deposit of $5,000, you can opt for a shorter fixed deposit tenure. The State Bank of India Singapore offers an interest rate of 1.6% for a year. If you can afford to stash it away for a longer period of 36 months, you can earn up to 2.3% p.a..
Either way, it’s interest rates across the board are rather attractive and worth looking into regardless of the inconvenience of banking with a foreign bank.
3. Bank of China fixed deposit rates
Bank of China fixed deposit rate
Interest rate
2.85% p.a.
Deposit amount
Min. $5,000
Tenure
12 months
Bank of China’s fixed deposit promotional rate offers a relatively competitive 2.85% p.a. interest and it gets better. The best part about Bank of China’s fixed deposit rate is that you only need a minimum deposit of $5,000 to get earn the 2.85% interest rate. Typically, most banks require a minimum deposit of at least $10,000.
If you’re looking to get the most out of a smaller sum of your savings, you can still leverage on Bank of China’s 2.85% p.a. which is far better than your POSB Squirrel Savings Account’s 0.05% p.a. interest. Plus, you only have to stash your money away for a year to earn the 2.85% interest.
4. Hong Leong Bank fixed deposit rates
Hong Leong Bank fixed deposit rate
Interest rate
2.75% p.a.
Deposit amount
Min. $50,000
Tenure
12 months
Apart from the big banks like DBS, UOB and OCBC, the fixed deposit aficionado should also look at other banks like Hong Leong Bank as they also offer attractive promotions.
Given its current fixed deposit interest rate of 2.75% p.a. for a lock-in period of 12 months (promotion ends 31 December 2022), ranks the highest in terms of interest rate across the board. It also has a relatively short lock-in period of a little over a year.
However, it does have a high minimum deposit amount of $50,000. If you’re certain you won’t be needing the extra cash on your hands for the next 12 months, Hong Leong Bank is definitely a good place to put your cash and let it work for you.
5. Hong Leong Finance fixed deposit rates
Hong Leong Finance fixed deposit rate
Interest rate
2.75% p.a.
Deposit amount
Min. $20,000
Tenure
15 months
Besides putting your money with banks, it’s also worthwhile looking into other financial institutions which also offer competitive fixed deposit rates. Hong Leong Finance is one such institution. Don’t get it confused with Hong Leong Bank, though. While the two share the same name, they offer entirely different fixed deposit rates.
Hong Leong Finance is currently offering a fixed deposit rate of 2.75% p.a. with a lock-in period of 15 months. This interest rate might not be the best across the board but if you’re looking start your savings with a lower amount of $20,000 onwards, Hong Leong Finance is definitely one to consider.
6. CIMB fixed deposit rates
CIMB fixed deposit rate
Interest rate
2.85% p.a.
Deposit amount
Min. $10,000
Tenure
18 months
Malaysian bank CIMB offers a pretty standard fixed deposit rate for the month with their 2.85% p.a. promotion if you are just a regular banking customer (not a CIMB Preferred customer). If you’re a CIMB Preferred customer, you’ll enjoy an even higher rate of 2.9%.
This promo is for deposits of at least $10,000. To enjoy this rate, you need to lock up your money for 18 months. This promo extends to both new and existing CIMB Personal Banking and CIMB Preferred customers. To be eligible, you have to apply and deposit your money online.
If you’re looking to deposit smaller amounts of your savings into a fixed deposit account, CIMB only offers 0.2% to 0.3% p.a.. In this instance, you would be better off placing your money with DBS at 1.7% (from $1,000) or Bank of China where you can earn 2.85% p.a. (from $5,000).
7. DBS fixed deposit rates
DBS fixed deposit rate
Interest rate
1.7% p.a.
Deposit amount
$1,000 to $19,999
Tenure
18 months
The current highest DBS fixed deposit rate is 1.7% p.a. for those who have $1,000 to $19,999 for 18 months. However, DBS has stopped accepting fixed deposits for 12 months and below. So, if you’re already on an existing DBS fixed deposit programme, heng ah!
If you’re opening a new fixed deposit account, the next tier you can apply for is 18 months and beyond. The only consolations are that the lock-in period is relatively short, and the minimum of $1,000 is quite a manageable amount. Still beats having your cash parked in a regular savings account!
8. ICBC fixed deposit rates
ICBC fixed deposit rate
Interest rate
2.8% 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, the lower-commitment options have become a lot more competitive of late.
There are a few fixed deposits which have pretty low barriers to entry on this list, but Chinese bank ICBC takes the cake by requiring just a $500 minimum deposit.
ICBC’s interest rates are also slightly above average when compared across the board. You get a 2.8% p.a. (if you apply for this fixed deposit online via ICBC e-banking) with a commitment period of 12 months.
When you do it the old school way, you’ll get a lower 2.75% p.a. for 12 months and you’ll have to hit a minimum deposit requirement of $5,000.
If you’re looking to start somewhere, ICBC has a low barrier of entry, a good fixed deposit rate to offer and a low commitment period of only a year.
9. Maybank fixed deposit rates
Maybank fixed deposit rate
Interest rate
3.05% p.a.
Deposit amount
Min. $20,000
Tenure
15 months
You can earn 3.05% p.a. with Maybank’s Singapore Dollar Time Deposit. Maybank’s fixed deposit rate this month pales in comparison across the board. Plus, you have to leave your money in for 15 months.
If you can commit to a longer 2 years, you can earn a higher interest rate of 3.2% p.a. with the same $20,000 minimum deposit amount with RHB.
However, if you’re looking to commit for a shorter time period, Maybank also offers 3% p.a. for 12 months or for 2.9% for 9 months.
10. UOB fixed deposit rates
UOB fixed deposit rate
Interest rate
3.0% p.a.
Deposit amount
Min. $20,000
Tenure
15 months
Right now, local bank UOB is offering 3.0% p.a. on their 15-month fixed deposits. While the lock-in period is relatively short at a year, it still does require a minimum deposit of $20,000.
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.
11. RHB fixed deposit rates
RHB fixed deposit rate
Interest rate
3.2% p.a.
Deposit amount
Min. $20,000
Tenure
24 months
Malaysian bank RHB is offering 3.2% p.a. fixed deposit interest rate. If you are an RHB Premier customer, you get a higher 3.4% p.a. interest rate instead. It’s the highest across the board this month. However, with RHB, you have to stash your funds away for 2 whole years and it also has a slightly higher minimum deposit requirement of $20,000.
12. Standard Chartered fixed deposit rates
Standard Chartered fixed deposit rate
Interest rate
2.7% p.a.
Deposit amount
Min. $25,000
Tenure
12 months
Standard Chartered’s fixed deposit rates are nothing to scream and shout about. At 2.7% p.a. interest rate for a lock-in period of a year, Standard Chartered’s ongoing fixed deposit rate promotion is amongst the lowest. If you have $25,000 to stash away for a year, you’ll earn a better fixed deposit rate with most other banks.
At $25,000, you can get 3.2% with RHB, 3% with UOB, and 3.05% with Maybank instead.
13. HSBC fixed deposit rates
HSBC fixed deposit rate
Interest rate
2.8% p.a.
Deposit amount
Min. $30,000
Tenure
12 months
HSBC offers a pretty decent 2.8% p.a. for a tenure of 12 months. However, the drawback is that it requires a higher initial deposit of $30,000.
If you don’t have that $30,000 in fresh funds to stash away, you can earn a higher interest rate of 2.85% p.a. for a lower initial deposit of $5,000 with Bank of China.
14. OCBC fixed deposit rates
HSBC fixed deposit rate
Interest rate
2.6% p.a.
Deposit amount
Min. $20,000
Tenure
12 months
OCBC offers a pretty low fixed deposit interest rate of 2.6% p.a. for a tenure of 12 months. With the other banks having increased their fixed deposit rate offerings, OCBC’s current rates pales in comparison. In the same tenure period of a year, you can earn a higher interest rate with UOB or Bank of China.
Now that we’ve had a look at the interest rates banks have to offer, here’s a quick and easy summary of what you need to know about fixed deposits.
15. Fixed deposit vs savings account — what’s the difference?
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)
16. Fixed deposit vs Singapore Savings Bonds (SSB) — which is better?
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 were actually higher than SSBs in 2021. The March 2021 issue of SSBs offered a measly 0.35% p.a. interest average return after the first 2 years. However, things have completely changed in the past year.
In fact, the Singapore Savings Bonds interest rates are better than they have ever been. The August 2022 Singapore Savings Bond (SSB) has a ten-year average return of 3% p.a., while even 2-year rates are 2% p.a. average return. The September 2022 SSB is slightly lower but still with an optimistic ten-year average return of 2.8% p.a.. While fixed deposit interest rates might be more attractive than SBSs in the short term, SBSs outperform fixed deposit rates in the long run.
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.
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Original article: Best Fixed Deposit Rates in Singapore (Oct 2022) — DBS, UOB, OCBC & More.
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