Fixed deposit is a type of financial product that Singaporeans favour. From this January news, some of the banks have had long queues since the fixed deposit rates have increased, with promotional rates as high as 2.6%.
With the cost of living steadily on the rise and the volatile nature of many investments, fixed deposits have stood out as a bastion of financial stability for countless individuals. Whether you are interested in a fixed deposit or not, here are some of the fixed deposit information and details you may need to know. You will notice that a fixed deposit is the best sanctuary to keep your money value increasing.
Therefore, our financial experts have rigorously tested and evaluated various fixed deposit products and gathered the details of the best fixed deposit rates in Singapore to increase your knowledge and maximise your fixed deposit income.
Table of Contents
TL;DR
- Several banks in Singapore offer competitive fixed deposit rates, including BANK OF CHINA, CIMB, CITIBANK, DBS/POSB, HL BANK, HONG LEONG FINANCE, HSBC, ICBC, MAYBANK, OCBC, RHB, SINGAPURA FINANCE, SCB, and UOB.
- RHB Bank is highlighted as having the best bank fixed deposit rates for October 2023. It is up to 3.60% for the 6 and 12-month tenure.
- HL Bank has raised its 12-month fixed deposit rate to 3.60% p.a., which is the same as the RHB Bank.
- The best 3-month fixed deposits are offered by Bank of China and HL Bank, which is up to 3.40% p.a.
Best Fixed Deposit Rates Singapore – December 2023
| Bank | Effective Rate (% p.a.) | Minimum Deposit | Tenure | Promotion Period |
| Bank of China | Counter Placement
-3.35 (3 months) Mobile Placement -3.40 (3 months) -3.30 (6 months) -3.20 (9/12 months) |
S$5,000 | -3 months
-6 months -9 months -12 months |
Further Notice |
| CIMB | Preferred Banking
-3.45% (6 month) Personal Banking -3.40 (6 months) -3.35 (9 months) -3.15 (12 months) |
S$10,000 | -6 months
-9 months -12 months |
31 Oct 2023 |
| CITI Bank | -3.50 (Citigold Private Client)
-3.40 (Citigold) -3.20 (Citi Priority, Citibanking or Citi Plus) |
S$250,000 (Citi Private Client)
S$250,000 (Citigold) S$50,000 (Citi Priority, Citibanking, or Citi Plus) |
-3 months | 31 Oct 2023 |
| DBS/POSB | -3.20 (12 months) | S$1,000 | -12 months | Further Notice |
| HL Bank | -3.40 (3 months)
-3.50 (6 months) -3.60 (12 months) |
S$100,000 | -3 months
-6 months -12 months |
Further Notice |
| Hong Leong Finance | -3.00 (8 months) | S$50,000 | -8 months | Further Notice |
| HSBC | -3.45 (3 months)
-3.00 (4 months) |
S$30,000 | – 3 months
– 4 months |
31 Oct 2023 |
| ICBC (e-banking) | -3.30 (3 months) | S$500 | – 3 months | Further Notice |
| Maybank | -3.65 (12/15 months) | S$22,000 | – 12 months
– 15 months |
Further Notice |
| OCBC | -2.70 (6 months) | S$30,000 | – 6 months | Further Notice |
| RHB | Premier Banking
-3.68 (6/12 months) Personal Banking -3.60 (6/12 months) |
S$20,000 | – 6 months
– 12 months |
Further Notice |
| Sing Investments & Finance LTD (SIF) | -3.10 (12 months) | S$20,000 | – 12 months | Further Notice |
| Standard Chartered | Priority Private Banking
-3.20 Priority Banking -3.10 Personal Banking -3.00 |
S$25,000 | – 6 months | 31 Oct 2023 |
| UOB | -2.70 | S$10,000 | – 6 months | 31 OCT 2023 |
Key Things to Know Before Investing in Fixed Deposits
- Fluctuating Promotional Interest Rates: Many banks in Singapore offer promotional interest rates on fixed deposits, which may vary monthly. Some of these promotional rates might not even have a designated expiry date.
- Alluring Welcome Offers: Banks frequently package these promotional rates as “welcome offers” to entice new customers. However, it’s worth noting that certain banks, such as RHB, may offer more favourable rates for their existing clientele when they renew their fixed deposits.
- Premium Customer Advantage: Most of the lucrative fixed deposit interest rates are often reserved for a bank’s premium or priority customers, reflecting the exclusivity of these offers.
- Significant Deposit Commitment: Having S$20,000 or more savings is better to meet overall bank requirements and is available to have the best interest rates.
- Fresh Funds Mandate: Some fixed deposit promotions specify the need for fresh funds or new deposits. This means your deposit money should not be transferred from your existing accounts with the same bank. For clarity, moving money between accounts, for instance, within ICBC, would not qualify as fresh funds.
- Option for Foreign Currency FDs: Some banks offer fixed deposits in foreign currencies for those with substantial amounts of foreign currency, such as USD. These might come with higher interest rates compared to SGD fixed deposits.
- Potential Risks with Foreign Currency Deposits: Foreign currency deposits, dual currency investments, structured deposits, and other investment products aren’t insured.
What are the Banks Offering the Highest Fixed Deposit Rates in Singapore?
RHB Fixed Deposit Rates
| Deposit Amount | Tenor (Months) | Personal Customers Interest Rates (p.a.) | Premier Customers / Online Promo Rates (p.a.) | Valid Till |
| S$20,000 and above | 3 months | 3.00% | 3.10% | Further notice |
| 6 months | 3.60% | 3.68% | ||
| 12 months | 3.60% | 3.68% |
RHB Board Rates
| 3 months | 6 months | 12 months | 18 months | 24 months | 36 months | |
| S$20,000 to S$200,000 | 0.30% | 0.375% | 0.40% | 0.40% | 0.40% | 0.40% |
| S$200,000 and above | 0.30% | 0.40% | 0.55% | 0.60% | 0.65% | 0.65% |
RHB is offering the highest fixed deposit rate in Singapore, 3.68% p.a. with 6 or 12-month tenures for Premier Banking online placements.
| Eligibility | Minimum Initial Deposit | Additional Costs |
| 18 years old | S$20,000 | Early termination is possible. No interest will be payable for premature withdrawals |
You can register the RHB fixed deposit accounts via RHB’s mobile app. Fill up the contact form on their website or visit their branch with your NRIC, passport and supporting documents.
Bank of China (BOC) Fixed Deposit Rates
| Tenor | Amount | Over the Counter Placement Interest Rates (p.a.) | Via Mobile Banking Placement Interest Rates (p.a.) | Promotion Validity |
| 1 month | S$5,000 and above | 2.95% | 3.00% | Valid until further notice |
| 3 months | 3.35% | 3.10% | ||
| 6 months | 3.25% | 3.30% | ||
| 9 months | 3.10% | 3.20% | ||
| 12 months | 3.10% | 3.20% | ||
| 18 months | 2.95% | 3.00% | ||
| 24 months | 2.75% | 2.80% |
BOC Board Rates
| Deposit Amount (SGD) | Interest Rate (p.a.) | |||||||
| Tenor | 1 month | 3 months | 6 months | 9 months | 12 months | 18 months | 24 months | 36 months |
| Below 20,000 | 0.90% | 1.00% | 1.30% | 1.50% | 1.70% | 1.80% | 1.80% | 1.80% |
| 20,000 to below 50,000 | ||||||||
| 50,000 to below 100,000 | ||||||||
| 100,000 to below 300,000 | ||||||||
| 300,000 to below 500,000 | ||||||||
| 500,000 and above | 0.95% | 1.05% | 1.35% | 1.55% | 1.75% | 1.85% | 1.85% | 1.85% |
If you open an account via mobile placement and make a minimum deposit of S$5,000, BOC is offering the 3.40% p.a. fixed deposit rate in Singapore with a 3-month tenure. A 3.35% p.a. offer for over-the-counter transactions.
| Eligibility | Minimum Initial Deposit | Additional Costs |
| 18 years old | S$5,000 | Early termination is possible. No interest will be payable for premature withdrawals |
You can register the BOC fixed deposit accounts via BOC’s mobile app. Fill up the contact form on their website or visit their branch with your NRIC, passport and supporting documents.
CIMB Fixed Deposit Rates
| Tenor | Personal Banking Online Promo Rate with S$10,000 and above | Preferred Banking Online Promo Rate with S$10,000 and above | Promotion Validity |
| 6 months | 3.40% | 3.45% | 31 Oct 2023 |
| 9 months | 3.35% | 3.40% | |
| 12 months | 3.15% | 3.20% |
CIMB Board Rates
| 1 month | 2 months | 3 months | 6 months | 9 months | 12 months | 18 months | 24 months | |
| S$1,000 to S$99,999 | 0.20% | 0.25% | 0.30% | 0.30% | 0.30% | 0.30% | 0.30% | 0.30% |
| S$100,000 and above | 0.20% | 0.30% | 0.35% | 0.35% | 0.35% | 0.35% | 0.35% | 0.35% |
CIMB offer the personal banking interest rate up to 3.40% p.a. for 6 months tenure. 3.45% p.a. interest rate with 6 months tenure is offered to preferred banking.
| Eligibility | Minimum Initial Deposit | Additional Costs |
| 18 years old | S$1,000 for board rates
S$1,000 for promotion rates |
Early termination is possible. No interest will be payable for premature withdrawals |
You can register the CIMB fixed deposit accounts via CIMB’s mobile app. Fill up the contact form on their website or visit their branch with your NRIC, passport and supporting documents.
Citibank Fixed Deposit Rates
| Type (New-To-Bank and existing) | Deposit Amount (SGD) | Tenor | Interest Rate | Promotion Validity |
| Citi Priority, Citibanking or Citi Plus | 50,000 to 3 million | 3 months | 3.20% | 31 Oct 2023 |
| 6 months | 2.80% | |||
| Citigold | 10,000 to 250,000 | 3 months | 3.30% | |
| 6 months | 2.90% | |||
| 250,000 to 3 million | 3 months | 3.40% | ||
| 6 months | 3.00% | |||
| Citigold Private Client | 10,000 to 250,000 | 3 months | 3.30% | |
| 6 months | 2.90% | |||
| Citigold Private Client | 250,000 to 3 million | 3 months | 3.50% | |
| 6 months | 3.10% |
Citibank Board Rates
| Deposit Amount (SGD) | Tenor | Interest Rate (p.a.) |
| 10,000 to 3 million | 1 week | 0.05% |
| 2 weeks | 0.05% | |
| 1 month | 0.05% | |
| 2 – 3 months | 0.08% | |
| 6 – 36 months | 0.10% |
Citibank offer 3.40% interest rate for 3 months tenure. There is a minimum deposit amount of S$10,000 with a tenor from 1 week to 36 months.
| Eligibility | Minimum Initial Deposit | Additional Costs |
| 18 years old | S$10,000 for normal rates
S$250,000 for promotion rates |
Early termination is possible. No interest will be payable for premature withdrawals |
You can register the Citibank fixed deposit accounts via Citibank’s mobile app. Fill up the contact form on their website or visit their branch with your NRIC, passport and supporting documents.
Hong Leong Finance Fixed Deposit Rates
| Deposit Amount (SGD) | 5-month | 8-month | Promotion Validity |
| 20,000 to 49,999 | 2.90% | 2.95% | Valid until further notice |
| 50,000 and above | 2.95% | 3.00% |
Hong Leong Finance Board Rates
| Tenor | Interest Rate (p.a.) <S$50,000 | Interest Rate (p.a.) >S$50,000 |
| 1 – 2 months | 0.05% | 0.15% |
| 3 – 5 months | 0.10% | |
| 6 – 8 months | 0.15% | 0.20% |
| 0.25% | ||
| 9 – 10 months | 0.20% | 0.30% |
| 11 – 13 months | 0.25% | 0.35% |
| 15 – 36 months | 0.30% | 0.45% |
| 0.50% |
Hong Leong Finance offer 3.00% interest rate for 8 months tenure. The 3.00% p.a. interest rate is not the highest among the fixed deposit market, but it offers 8-month tenure that fulfils part of Singapore that wishes to have 8 8-month tenure fixed deposit.
| Eligibility | Minimum Initial Deposit | Additional Costs |
| 15 years old | S$10,000 | Early termination is possible. No interest will be payable for premature withdrawals |
You can register the Hong Leong Finance fixed deposit accounts via Hong Leong Finance’s mobile app. Fill up the contact form on their website or visit their branch with your NRIC, passport and supporting documents.
HSBC Fixed Deposit Rates
| Tenure | Placement Amount (SGD) | Promotional SGD Time Deposit |
| 3 & 6-month | 200,000 to 2 million | 3.45% p.a. |
| 3 & 6-month | 30,000 to 200,000 | 3.00% p.a. |
HSBC Board Rates
| Customer Type | Deposit Amount (SGD) | 1 month (%p.a.) | 3 month (%p.a.) | 6 month (%p.a.) | 12 month (%p.a.) | 24 month (%p.a.) |
| Personal Banking | 5,000 and above | 0.05% | 0.05% | 0.10% | 0.15% | 3.00% |
| Premier Banking | 5,000 and above | 0.05% | 0.05% | 0.10% | 0.15% | 3.00% |
HSBC offer 3.45% interest rate for 3 and 6 months tenure. There is minimum fresh fund placement amount for the HSBC SGD Time Deposit Promotion is S$30,000.
| Eligibility | Minimum Initial Deposit | Additional Costs |
| 18 years old | S$5,000 for normal rates
S$30,000 for promotional rates |
Early termination is possible. No interest will be payable for premature withdrawals |
You can register the HSBC fixed deposit accounts via HSBC’s mobile app. Fill up the contact form on their website or visit their branch with your NRIC, passport and supporting documents.
Maybank Fixed Deposit Rates
| Minimum Placement Amount (SGD) | Tenor (months) | Interest Rate (p.a.) | Valid Till | |
| Deposit Bundle Promotion (Placement in Branch)
Available to Individual, SME and Commercial Banking customers |
20,000 and above | 12 – 15 months | 3.65% | Further notice |
| 18 – 24 months | 3.10% | |||
| iSaVvy Time Deposit Promotion (Online Placement)
Available to Individual Banking customers |
9 months | 2.80% | ||
| 12 – 15 months | 2.90% | |||
| 18 – 24 months | 2.60% | |||
| SGD Time Deposit Promotion (Placement in Branch) | 9 months | 2.80% | ||
| 12 – 15 months | 2.90% | |||
| 18 – 24 months | 2.60% |
Deposit Bundle Promotion (Placement in Branch)
- Every S$1,000 deposited into Maybank Current or Savings Accounts which has the minimum amount of S$2,000, you can deposit S$10,000 into the Deposit Bundle Promotion (S$20,000).
iSaVvy Time Deposit Promotion (Online Placement)
- Minimum placement amount of S$25,000.
SGD Time Deposit / Term Deposit-i Promotion
- Available to Individual, SME and Commercial Banking customers.
Maybank Board Rates
| Singapore Dollar Time Deposit (p.a.) | ||||
| Months | S$1,000 – S$50,000 | S$50,001 – S$99,999 | S$100,000 – S$249,999 | S$250,000 – S$999,999 |
| 1 & 2 months | 0.10% | 0.10% | 0.10% | 0.10% |
| 3 months | 0.20% | 0.20% | 0.20% | 0.20% |
| 6 months | 0.25% | 0.25% | 0.25% | 0.25% |
| 9 – 12 months | 0.35% | 0.35% | 0.35% | 0.35% |
| 18 months | 0.40% | 0.40% | 0.40% | 0.40% |
| 24 months | 0.50% | 0.50% | 0.50% | 0.50% |
| 36 months | 2.85% | 2.85% | 2.85% | 2.85% |
You can register the Maybank fixed deposit accounts via Maybank’s mobile app. Fill up the contact form on their website or visit their branch with your NRIC, passport and supporting documents.
| Eligibility | Minimum Initial Deposit | Additional Costs |
| 16 years old | S$1,000 for normal rates (S$10,000 for 1-month tenure)
S$20,000 for promotional rates |
Early termination is possible. No interest will be payable for premature withdrawals |
What Are the Alternatives to Fixed Deposits?
The fixed deposit is a popular investment product in Singapore, it offers a low-risk, high-interest rate. You can have great capital growth when you catch the best-fixed deposit rate Singapore. Other than fixed deposits, there are various potential alternative investment products in the Singapore market.
Those products offer low risk and great interest rates, and some of them are higher risk than fixed deposits but have higher interest rates offered. If you wish to have alternatives to fixed deposits, we are going to discuss other potential investment products that are analysed by our team.
1. Singapore Savings Bonds (SSBs)
Singapore Savings Bonds (SSBs) are types of investment products popular among Singaporeans. It can be seen as a midway point between a fixed deposit and a regular government bond. SSBs are a low-risk investment option but potential to have a higher return than fixed deposits.
SSBs, similar to fixed deposits, allow Singaporeans to invest with the assurance of getting their principal amount in full. They are fully backed by the Singapore Government, ensuring there is virtually no risk of capital loss.
Features of SSBs
SSBs offer a low amount of entry fees, S$500, to provide an accessible entry point for most individuals. SSBs typically have a 10-year tenure, but it is more liquid than a fixed deposit, where you are available to withdraw without any penalty.
Besides, SSBs allow subsequent investment and the amounts must be made in multiples of S$500. SSBs come with a step-up interest system, which means that the longer you hold onto the bond, the higher the interest you earn.
Why Consider?
SSBs offer better liquidity than fixed deposits, and their rates can sometimes outpace the best fixed deposit rates in Singapore over the long term.
2. Savings Accounts
Savings Accounts is the type of alternative to fixed deposit in Singapore. Fixed deposit is well-known with the best fixed deposit rate Singapore but lacks liquidity. Therefore, Savings Accounts come with greater flexibility and competitive interest rates to pack as a viable alternative to fixed deposits.
The savings accounts guarantee the principal as well, the coverage limit of the FDIC is S$250,000 per depositor. With better liquidity and competitive interest rates, savings accounts have become the popular alternatives to fixed deposits in Singapore in 2023.
Features of Savings Accounts
The interest rates of savings accounts are generally higher than fixed deposits, but the interest rates are tiered with minimum balance, credit card expenditure or salary crediting. Higher interest rates are required for higher deposits than fixed deposits.
Savings Accounts are allowed to withdraw anytime without incurring penalties. To let customers feel at ease with their higher deposits, savings accounts provide high liquidity to help customers have better cash flow while investing. Besides, Savings accounts will offer cashback on transactions and bonus interest rates for fulfilling certain criteria. Fixed deposits do not offer these additional benefits.
Why Consider?
Savings Accounts is highly recommended to those looking for high liquidity products. Some banks in Singapore occasionally run promotions with attractive interest rates, rivalling those of fixed deposits.
3. Cash Management Accounts (CMAs)
Cash Management Accounts are the type of alternative to fixed deposits to cater to the needs of consumers. CMAs provided by investment platforms are a combination of savings accounts and investment platforms. CMAs will automatically invest your cash in low-risk funds or short-term fixed-income products.
Features of CMAs
CMAs are not time-bound, unlike fixed deposit, which has tenure. CMAs offer higher liquidity than fixed deposits, and the funds are allowed to withdraw within a couple of business days without penalties.
The capital of CMAs is not guaranteed, there is a possibility of losing some of the principal, but low-risk as the nature of CMAs is the nature of the underlying investments. With the risk of losing capital, the interest rate of CMAs is higher potential returns than fixed deposits.
Why Consider?
CMAs provide higher liquidity and interest rates than fixed deposits. For those comfortable with a slight step-up in risk, it is recommended to choose CMAs as the alternative to fixed deposits.
4. Endowment Policies
Endowment policies are life insurance contracts that combine savings and protection, which is another alternative to fixed deposits. They are designed to pay a lump sum after a certain period or on the death of the policyholder.
Features of Endowment Policies
Endowment Policies offer guaranteed and non-guaranteed returns. A portion of the returns is guaranteed, while another might vary based on the insurer’s performance. You can have a great interest rate investment and financial protection for your loved ones with Endowment Policies.
Besides, the tenure of Endowment Policies can be chosen from 10 to 30 years or more, and there is providing liquidity during emergencies.The Endowment Policy is eligible for tax deductions as an additional advantage over fixed deposits.
Why Consider?
Endowment Policies offer a greater interest rate, especially in favourable market conditions. Besides, you have life protection to ensure this investment product is received for your retirement funds or the financial protection for your loved ones.
5. Money Market Funds
Money Market Funds are a type of mutual fund that invests primarily in short-term, commercial paper and certificates of deposit. It offers higher interest rates and liquidity than fixed deposits.
Features of Money Market Funds
The tenure of MMFs is short, typically less than 1 year, and offers high liquidity. Investors can generally buy or redeem their shares on any business day without significant penalties. It is different to fixed deposits that hold your principal in a certain period and fixed interest rates.
You are allowed to earn more interest rates than fixed deposits with its flexibility and diversification. MMFs are not insured like fixed deposits, they generally invest in high-quality instruments and aim to preserve capital, making them relatively low-risk.
Why Consider?
Money Market Funds offer an avenue for potentially higher returns than savings accounts with relatively low risk and higher liquidity than fixed deposits. When short-term interest rates rise, you are available to receive higher interest rates than fixed deposits.
Fixed Deposit Rates Compare to Singapore Treasury Bill (T-bill) and Singapore Savings Bonds
Fixed Deposit, Singapore Treasury Bill and Singapore Savings Bond were the popular low-risk choices for those seeking the best fixed deposit rates in Singapore.
Singapore Treasury Bill (T-bill) is a short-term security that matures in less than a year. They don’t pay any interest but are issued at a discount, effectively earning the investor an implied interest.
The recent 6-month Singapore Treasury Bill auction was 4.07%, higher than the best 6-month fixed deposit rate offered by banks.
Singapore Savings Bonds (SSBs) are longer-term securities with tenures of up to ten years. They offer step-up interest rates that increase over time, making them suitable for long-term holdings.
The Singapore Savings Bonds offer an average interest rate of 3.32% for those investors who have held bonds for 10 years.
Pros and Cons between Fixed Deposits, Singapore Treasury Bill, and Singapore Savings Bonds
| Pros | Cons | |
| Fixed Deposits | – Guaranteed interest rate
– Familiarity and ease of setup – Offered by many banks |
– Potential for lower yields in low-interest rate environment
– Early withdrawal penalties |
| Singapore Treasury Bill (T-bill) | – Short-term investment
– Highly liquid – Safe and backed by the Singapore Government |
– Potentially lower yields than other short-term instruments
– No coupon payment |
| Singapore Savings Bonds (SSBs) | – Backed by the Singapore Government
– Step-up interest rates – Highly liquid with flexible redemption |
– Initial yields can be lower than fixed deposits
– Longer commitment for better returns |
There are different advantages and disadvantages between fixed deposits, T-bill and SSBs. Sometimes, the T-bill and SSBs have better interest rates than fixed deposits, but fixed deposits are more stable to gain the best fixed deposit rate Singapore.
Fixed Deposit Rates Compare to Savings Accounts
Fixed deposit and savings accounts are the popular choice for individuals seeking safe places to park their funds in Singapore. There are come with different features and advantages to cater for your preferences.
1. Nature
Fixed Deposits: A financial product that offers you a higher interest rate by locking a certain amount of money for a specified period. The money will returned with the earned interest at the end of the period.
Saving Accounts: A savings account is a deposit account held at a bank or other financial institution. The major function is to keep your money, allow you to deposit and withdraw money anytime, and provide an interest rate lower than fixed deposits.
2. Interest Rates
Fixed Deposits: Higher interest rates. The rates are different from the bank and the tenure.
Saving Accounts: Low-interest rate, and the saving accounts only provide annual interest.
3. Risk
Fixed Deposits: A low-risk investment product, the principal amount is usually safe and the interest rate is guaranteed.
Saving Accounts: Low-risk than fixed deposits, and the returns are lower than fixed deposits.
4. Liquidity
Fixed Deposits: Low liquidity than saving accounts. You are allowed to withdraw before maturity, but might attract penalties or a loss of interest.
Saving Accounts: High liquidity. You are allowed to withdraw anytime without any penalty.
| Features | Fixed Deposits | Savings Accounts |
| Interest Rates | Higher interest rates | Generally lower than fixed deposits |
| Liquidity | Low liquidity, can withdrawal anytime but losing any interest earned | High liquidity, can withdrawal anytime |
| Minimum Deposit | Higher initial deposit, such as S$20,000 | Lower or no minimum deposit requirement |
| Tenure | Predetermined period, such as 1, 3, 6, 9, 12-months | No fixed tenure, allowing continuous access |
| Account Fees | No monthly fees | Some have monthly fees or require minimum balance to avoid charges |
Pros and Cons between Fixed Deposit and Saving Accounts
| Pros | Cons | |
| Fixed Deposits | – Higher interest rates
– Low-risk investment option – Encourages disciplined savings as funds are locked in |
– Funds are inaccessible for the deposit period
– Penalties on early withdrawal can erode interest gains |
| Saving Accounts | – Quick access to deposited funds
– Flexibility with no fixed investment period – Additional banking benefits like card perks |
– Lower interest rates
– Fees charged |
Fixed Deposit Rates Compare to Cash Management Accounts
Fixed deposits and cash management accounts both are financial products to grow your savings, but there are different structures, risks, and returns. Cash management accounts are the type of product that provides higher potential returns compared to savings accounts and greater flexibility compared to fixed deposits.
| Features | Fixed Deposits | Cash Management Accounts |
| Interest Rates | 3% p.a. and above | 3% p.a. and above |
| Rate Stability | Predetermined and stable | Fluctuates based on market-linked instruments |
| Duration | Short to long term, such as 1 to 12-months | Flexible, no fixed duration |
| Capital Protection | Guaranteed by banks | Principal may be at risk depending on investments |
| Liquidity | Restricted by lock-in period, will penalties for early withdrawal | More liquid and easy withdrawals |
| Risk Level | Low risk, creditworthiness by bank | Moderate risk, based on underlying assets |
| Additional Benefits | Earn higher rate for larger deposits and longer tenures | Often integrated with robo-advisors or other investment platforms |
Pros and Cons between Fixed Deposit and Cash Management Accounts
| Pros | Cons | |
| Fixed Deposits | – Stable and guaranteed interest
– Low risk – Principal Protected |
– Lower potential returns than Cash Management Accounts
– Low flexibility – Penalties for early withdrawal |
| Cash Management Accounts | – Higher return
– Flexibility with no lock-in period |
– Fluctuate return based on market rates
– Risky to principal |
Conclusion
Fixed deposit always is the popular options for Singaporean to growth their capital because its low-risk and best fixed deposit rate Singapore that provided. Different banks will offer the best fixed deposit rate in different months. For example, RHB offers the best fixed deposit rate Singapore up to 3.68%.
If you seeking an alternative to fixed deposits, the T-bills, SSBs, Savings Accounts and CMAs are the wise choices for you. Each alternative offers different features, pros and cons. You may understand your needs first before investing in the fixed deposit or those alternatives to ensure these investment tools become your best method to build your capital.
Read also: 5 Best Money Changers to Get the Best Rates in Singapore 2023
Frequently Asked Questions
The information provided in this article is for general informational purposes only and is not intended as financial or investment advice. It does not account for the specific needs, investment objectives, or financial circumstances of any particular individual. Readers are advised to consult with a qualified financial advisor or conduct their research before making any financial decisions. The author and publisher shall not be liable for any loss or damage arising from any reliance on the information or recommendations provided herein.
