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Introduction
Looking for a safe place to invest your cash while earning guaranteed returns? Fixed deposits (FDs) continue to be one of the most popular low-risk investment options in Singapore. As of August 2025, although interest rates are adjusting after their peak in late 2023, there are still attractive offers from leading banks. This article provides an up-to-date comparison of the best fixed deposit rates in Singapore, helping you make an informed decision based on your financial goals.
Our team has thoroughly tested and evaluated various fixed deposit products, considering different factors such as tenure, minimum deposit, and current interest rates. Our goal is to ensure you find the most competitive and suitable fixed deposit offer for your savings.
TL;DR (Too Long; Didn’t Read)
- Fixed deposit rates in Singapore for August 2025 are still competitive, though they have adjusted from their peak in late 2023.
- Some of the top banks offering attractive rates include Citibank, DBS/POSB, RHB, HSBC, and UOB, with different rates based on the deposit tenure.
- Minimum deposit requirements vary, with some banks requiring as little as $500, while others need $50,000 depending on the bank and offer.
- Interest rates differ across various tenures, with options ranging from 1 month to 24 months, allowing flexibility in choosing the right deposit duration.
- Citibank and Bank of China offer better rates for mobile banking placements, while DBS/POSB offers the highest rates for deposits between $1,000 and $19,999.
- OCBC provides higher rates for online fixed deposits compared to those made through branch placements, and other banks offer monthly interest payouts or fixed rates throughout the deposit period.
Withdrawing your fixed deposit early might result in penalties and reduced interest earned, so it’s important to stay aware of each bank’s withdrawal policy.
Best Fixed Deposit Rates Singapore – July 2025
| Bank | Tenure | Interest Rate per Annum | Minimum Amount |
|---|---|---|---|
| Bank of China (Counter Deposit) | 1 Month | 1.35% | $20,000 |
| 3 Months | 1.35% | $20,000 | |
| 6 Months | – | – | |
| 9 Months | – | – | |
| 12 Months | – | – | |
| Bank of China (Mobile Banking Promo) | 1 Month | 1.55% | $500 |
| 3 Months | 1.70% | $500 | |
| 6 Months | 1.65% | $500 | |
| 9 Months | 1.55% | $500 | |
| 12 Months | 1.45% | $500 | |
| Citibank (New Funds Promotion) | 3 Months | 1.80% | $50,000 |
| 6 Months | 1.80% | $50,000 | |
| Citibank | 3 Months | 1.10% | $10,000 (max $3M) |
| 6 Months | 1.00% | $10,000 (max $3M) | |
| 12 Months | 1.00% | $10,000 (max $3M) | |
| CIMB (Preferred Banking) | 3 Months | 1.65% | $10,000 and above |
| 6 Months | 1.60% | $10,000 and above | |
| 9 Months | 1.35% | $10,000 | |
| 12 Months | 1.35% | $10,000 | |
| CIMB (Personal Banking) | 3 Months | 1.60% | $10,000 and above |
| 6 Months | 1.55% | $10,000 and above | |
| 9 Months | 1.30% | $10,000 and above | |
| 12 Months | 1.30% | $10,000 and above | |
| DBS/POSB | 6 Months | 2.15% | $1,000- $19,999 |
| 9 Months | 2.35% | $1,000-$19,999 | |
| 12 Months | 2.45% | $1,000- $19,999 | |
| HSBC (Premier & Premier Elite with Wealth Holdings) | 3 Months | 1.55% | $30,000 |
| 6 Months | 1.50% | $30,000 | |
| 12 Months | 1.35% | $30,000 | |
| HSBC (Premier & Premier Elite without Wealth Holdings) | 3 Months | 1.20% | $30,000 |
| 6 Months | 1.15% | $30,000 | |
| 12 Months | 1.00% | $30,000 | |
| HSBC (Personal Banking) | 3 Months | 1.15% | $30,000 |
| 6 Months | 1.10% | $30,000 | |
| 12 Months | 0.95% | $30,000 | |
| Hong Leong Finance (Online Fixed Deposit Special) | 8 Months | 1.40% | S$5,000 to < S$20,000 |
| 8 Months | 1.42% | S$20,000 and above | |
| 9 Months | 1.40% | S$5,000 to < S$20,000 | |
| 9 Months | 1.42% | S$20,000 and above | |
| 11 Months | 1.38% | S$5,000 to < S$20,000 | |
| 11 Months | 1.40% | S$20,000 and above | |
| 12 Months | 1.38% | S$5,000 to < S$20,000 | |
| 12 Months | 1.40% | S$20,000 and above | |
| 15 Months | 1.33% | S$5,000 to < S$20,000 | |
| 15 Months | 1.40% | S$20,000 and above | |
| Hong Leong Finance (Fixed Deposit Promotion) | 8 Months | 1.40% | S$20,000 and above |
| 9 Months | 1.40% | S$20,000 and above | |
| 11 Months | 1.40% | S$20,000 and above | |
| 12 Months | 1.40% | S$20,000 and above | |
| 15 Months | 1.40% | S$20,000 and above | |
| ICBC (E-banking) | 3 Months | 1.45% | $500 |
| 6 Months | 1.45% | $500 | |
| 9 Months | 1.40% | $500 | |
| 12 Months | 1.40% | $500 | |
| Maybank (iSAVvy Online) | 6 Months | 1.50% | $20,000 |
| 9 Months | 1.50% | $20,000 | |
| 12 Months | 1.45% | $20,000 | |
| Maybank (Singapore Dollar Time Deposit) | 6 Months | 1.50% | $20,000 |
| 9 Months | 1.50% | $20,000 | |
| 12 Months | 1.45% | $20,000 | |
| OCBC (Online) | 9 Months | 1.35% | $30,000 |
| 12 Months | 1.35% | $30,000 | |
| OCBC (Branch Placement) | 9 Months | 1.30% | $30,000 |
| 12 Months | 1.30% | $30,000 | |
| RHB (Personal Banking) | 3 Months | 1.40% | $20,000 |
| 6 Months | 1.10% | $20,000 | |
| 12 Months | 1.00% | $20,000 | |
| RHB (Premier Banking) | 3 Months | 1.50% | $20,000 |
| 6 Months | 1.20% | $20,000 | |
| 12 Months | 1.10% | $20,000 | |
| Standard Chartered | 6 Months | 0.70% | No Minimum |
| 9 Months | 1.05% | No Minimum | |
| 12 Months | 1.10% | No Minimum | |
| 15 Months | 1.50% | No Minimum | |
| SBI | 3 Months | 1.25% | $5,000 |
| 6 Months | 1.25% | $5,000 | |
| 9 Months | 1.15% | $5,000 | |
| 12 Months | 1.15% | $5,000 | |
| UOB | 6 Months | 1.55% | $10,000 |
| 10 Months | 1.40% | $10,000 | |
| Sing Investments & Finance LTD (SIF) (Online) | 3 Months | 1.55% | $1,000 |
| 6 Months | 1.50% | $1,000 | |
| 12 Months | 1.35% | $1,000 | |
| Sing Investments & Finance LTD (SIF) (Online) | 3 Months | 1.60% | $10,000 |
| 6 Months | 1.55% | $10,000 | |
| 12 Months | 1.40% | $10,000 | |
| Sing Investments & Finance LTD (SIF) (OTC) | 3 Months | 1.55% | $10,000 |
| 6 Months | 1.50% | $10,000 | |
| 12 Months | 1.35% | $10,000 |
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
| Tenure | Personal Banking Interest Rate (% p.a.) | Premier Banking Interest Rate (% p.a.) | Minimum Deposit |
|---|---|---|---|
| 3 months | 1.40% | 1.50% | S$20,000 |
| 6 months | 1.10% | 1.20% | S$20,000 |
| 12 months | 1.00% | 1.10% | S$20,000 |
Important Things to Take Note:
If you want to open a deposit account , here are some few important things to keep in mind. Both Personal and Premier Banking customers need to maintain a minimum deposit of S$20,000.
Premier Banking customers enjoy a slightly higher interest rate than Personal Banking customers , regardless of tenure you selected.
The interest rates are fixed for the entire tenure of the deposit. However, early withdrawal can lead to penalties and reduced interest, depending on the bank policies.
Bank of China (BOC) Fixed Deposit Rates
| Tenure | Interest Rate (Mobile Banking Promo) | Interest Rate (Counter Promo) | Minimum Deposit (Mobile / OTC) |
|---|---|---|---|
| 1 month | 1.55% | 1.35% | S$500 / S$20,000 |
| 3 months | 1.70% | 1.35% | S$500 / S$20,000 |
| 6 months | 1.65% | – | S$500 / S$20,000 |
| 9 months | 1.55% | – | S$500 / S$20,000 |
| 12 months | 1.45% | = | S$500 / S$20,000 |
Important Things to Take Note:
This bank offers both counter and mobile placements.Mobile Banking generally offers higher interest rates as compared to counter placement. It offers both counter and mobile placements.
The minimum deposit for mobile placement is S$500 , while the counter placements require a minimum deposit of S$20,000.
The interest rate is paid when the deposit period is ended. Some types provide interest rates on monthly bases. But keep in mind that the interest rate will not be paid if you withdraw your money early.
Citibank Fixed Deposit Rates
Promotional Fixed Deposit Rates (New Funds Only):
| Tenure | Promotional Rate (p.a.) | Minimum Deposit |
|---|---|---|
| 3 months | 1.80% | S$50,000 (new funds only) |
| 6 months | 1.80% | S$50,000 (new funds only) |
Standard Fixed Deposit Rates (All Funds):
| Tenure | Standard Rate (p.a.) | Minimum Deposit |
|---|---|---|
| 3 months | 1.60% | S$10,000 – S$3 million |
| 6 months | 1.50% | S$10,000 – S$3 million |
| 12 months | 1.40% | S$10,000 – S$3 million |
Important Things to Take Note:
The limited time interest rate of 1.80 p.a is only for new funds between S$50,000 to S$3 million. This rate is available for only 3- months and 6-months deposit only.
For the funds between S$10,000 and S$3 million, the standard rate is applied. Once the promotion ends , the rates may change.
The promotional rate is only for new money added in your account. Any other deposit will earn the regular rates. Interest is paid at the end of the deposit period.
If you withdraw your money early, there may be penalties and the interest could be lower. The maximum deposit allowed for standard fixed deposit rates is S$3 million.
CIMB Fixed Deposit Rates
| Tenure | Interest Rate (Personal Banking) | Interest Rate (Preferred Banking) | Minimum Deposit |
|---|---|---|---|
| 3 months | 1.60% | 1.65% | S$10,000 |
| 6 months | 1.55% | 1.60% | S$10,000 |
| 9 months | 1.30% | 1.35% | S$10,000 |
| 12 months | 1.30% | 1.35% | S$10,000 |
Important Things to Take Note:
This offer is only available for online placements. Preferred Banking customers enjoy higher interest rates than Personal Banking customers.
To open a deposit, you need to place at least S$10,000, whether you have a personal or preferred banking account.
Interest is usually paid at the end of the deposit period, but for longer tenures, it can be paid monthly. If you take out your money before the deposit ends, no interest will be given.
DBS/POSB Fixed Deposit Rates
Fixed Deposit Rates for Deposits Between S$1,000 and S$19,999:
| Tenure | Interest Rate (p.a.) | Minimum Deposit |
|---|---|---|
| 3 months | 1.00% | S$1,000 |
| 6 months | 2.15% | S$1,000 |
| 9 months | 2.35% | S$1,000 |
| 12 months | 2.45% | S$1,000 |
| 18 months | 2.45% | S$1,000 |
| 24 months | 2.45% | S$1,000 |
Fixed Deposit Rates for Deposits Above S$20,000:
| Tenure | Interest Rate (p.a.) | Minimum Deposit |
|---|---|---|
| 3 months | 0.05% | S$20,000 and above |
| 6 months | 0.05% | S$20,000 and above |
| 9 months | 0.05% | S$20,000 and above |
| 12 months | 0.05% | S$20,000 and above |
| 18 months | 0.05% | S$20,000 and above |
| 24 months | 0.05% | S$20,000 and above |
Important Things to Take Note:
If you deposit between S$1,000 and S$19,999, you can enjoy a better interest rate. DBS/POSB offers a top rate of 2.45% p.a. for a duration of 12 months or more within this deposit range.
However, if you deposit more than S$20,000, the interest rate drops to just 0.05% p.a., no matter the tenure.
To apply for the higher interest rates, a minimum deposit of S$1,000 is required. Interest is paid at the end of the deposit term. If you withdraw the cash before the maturity date, then you may have to face penalties, and interest will be knocked down based on the bank’s rules.
HSBC Fixed Deposit Rates
| Tenure | Interest Rate (Premier & Premier Elite with Wealth Holdings) | Interest Rate (Premier & Premier Elite without Wealth Holdings) | Interest Rate (Personal Banking) | Minimum Deposit |
|---|---|---|---|---|
| 3 months | 1.55% | 1.20% | 1.15% | S$30,000 |
| 6 months | 1.50% | 1.15% | 1.10% | S$30,000 |
| 12 months | 1.35% | 1.00% | 0.95% | S$30,000 |
Important Things to Take Note:
This deposit option is only for personal banking customers and needs a minimum amount of S$30,000 to start. The interest rates may be lower than some other banks, but your returns are guaranteed.
You can choose to get your interest either every month or at the end of the deposit period. However, if you take out your money early, you won’t earn any interest.
Hong Leong Finance Fixed Deposit Rates
Online Fixed Deposit Special (Via HLF Digital):
| Tenure | Interest Rate | Deposit Amount |
|---|---|---|
| 8 Months | 1.40% | S$5,000 to < S$20,000 |
| 8 Months | 1.42% | S$20,000 and above |
| 9 Months | 1.40% | S$5,000 to < S$20,000 |
| 9 Months | 1.42% | S$20,000 and above |
| 11 Months | 1.38% | S$5,000 to < S$20,000 |
| 11 Months | 1.40% | S$20,000 and above |
| 12 Months | 1.38% | S$5,000 to < S$20,000 |
| 12 Months | 1.40% | S$20,000 and above |
| 15 Months | 1.33% | S$5,000 to < S$20,000 |
| 15 Months | 1.40% | S$20,000 and above |
Standard Fixed Deposit Promotion (Branch Placement):
| Tenure | Interest Rate | Deposit Amount |
|---|---|---|
| 8 Months | 1.40% | S$20,000 and above |
| 9 Months | 1.40% | S$20,000 and above |
| 11 Months | 1.40% | S$20,000 and above |
| 12 Months | 1.40% | S$20,000 and above |
Important Things to Take Note:
Hong Leong Finance (HLF) offers a variety of financial products and services designed for both personal and corporate clients. One of the key offerings is their Fixed Deposit promotions, which feature attractive interest rates of up to 1.42% p.a. for online placements. These rates are available for deposit tenures ranging from 8 to 15 months, with a minimum deposit of S$20,000 required to access the higher rates.
HLF Digital, their secure online banking platform, enables customers to place fixed deposits, transfer funds, and track interest earnings efficiently. Additionally, all deposits with HLF are insured up to S$100,000 by the Singapore Deposit Insurance Corporation (SDIC), providing customers with a safety net for their investments
ICBC Fixed Deposit Rates
Fixed Deposit Rates for E-banking and Over-the-Counter Deposits:
| Tenure | Deposit of S$500 – S$199,999 | Deposit of ≥ S$200,000 |
|---|---|---|
| 1 month | 1.45% | 1.50% |
| 3 months | 1.45% | 1.50% |
| 6 months | 1.45% | 1.50% |
| 9 months | 1.40% | 1.45% |
| 12 months | 1.40% | 1.45% |
Important Things to Take Note:
With ICBC, the E-banking option allows you to start a deposit with as little as S$500, making it easier for more people to join.
If you prefer to deposit over the counter, the minimum is S$20,000 — and you’ll get a slightly higher interest rate than with E-banking.
E-banking is only available to customers using ICBC’s online banking service. The interest rate stays fixed for the full term, no matter how the market changes. If you withdraw your money early, there may be a penalty, and your interest could be reduced.
Maybank Fixed Deposit Rates
Fixed Deposit Rates for Singapore Dollar Time Deposit:
| Tenure | Promotional Rate (p.a.) | Min. Deposit |
|---|---|---|
| 6 months | 1.50% | S$20,000 |
| 9 months | 1.50% | S$20,000 |
| 12 months | 1.45% | S$20,000 |
Promotion valid when you also deposit at least S$2,000 into a linked Maybank Savings or Current Account.
Fixed Deposit Rates for iSAVvy Time Deposit Promotion (Online Only):
| Tenure | Promotional Rate (p.a.) | Min. Deposit |
|---|---|---|
| 6 months | 1.50% | S$20,000 |
| 9 months | 1.50% | S$20,000 |
| 12 months | 1.45% | S$20,000 |
Important Things to Take Note:
Maybank offers two fixed deposit promotions. The Deposit Bundle Promotion gives you higher interest rates if you open a fixed deposit along with a linked Maybank Savings or Current Account and deposit at least S$2,000 into that account.
In contrast, the iSAVvy Time Deposit Promotion is available only for online deposits and doesn’t require any linked account, making it more flexible for digital users.
For both promotions, a minimum fixed deposit of S$20,000 is required. The interest rates are fixed throughout the deposit term, so they won’t change during that period.
The iSAVvy promotion also offers competitive rates for 6, 9, and 12-month tenures. Keep in mind that early withdrawals may result in penalties and reduced interest earnings.
OCBC Fixed Deposit Rates
Fixed Deposit Rates for Branch Placement Promotion:
| Tenure | Promotional Rate (p.a.) | Min. Deposit |
|---|---|---|
| 9 months | 1.30% | S$30,000 |
| 12 months | 1.30% | S$30,000 |
Fixed Deposit Rates for Online Fixed Deposit Promotion:
| Tenure | Promotional Rate (p.a.) | Min. Deposit |
|---|---|---|
| 9 months | 1.35% | S$30,000 |
| 12 months | 1.35% | S$30,000 |
Important Things to Take Note:
The interest rates on Online Fixed Deposits are slightly higher than those on Branch Placement Deposits. To start, both options require a deposit of S$30,000. The interest rates are fixed and remain unchanged over the entire deposit term.
If you take your money out earlier than planned, there may be penalties and you will earn less interest on the deposit. Moreover, rates depend on availability and may change with the market.
Standard Chartered Fixed Deposit Rates
| Tenure | Promotional Rate (p.a.) | Min. Deposit |
|---|---|---|
| 6 months | 0.70% | No minimum |
| 9 months | 1.05% | No minimum |
| 12 months | 1.10% | No minimum |
| 15 months | 1.50% | No minimum |
Important Things to Take Note:
This fixed deposit option has no minimum deposit requirement that makes it accessible for everyone. Competitive interest rates are offered for placements starting from 6 months, and the rates increase with longer tenures.
The interest rate stays fixed throughout the deposit period. However, if you withdraw your money early, you may face penalties and the interest earned could be reduced according to the bank’s policy.
SBI Fixed Deposit Rates
| Tenure | Promotional Rate (p.a.) | Min. Deposit |
|---|---|---|
| 3 months | 1.25% | S$5,000 |
| 6 months | 1.25% | S$5,000 |
| 9 months | 1.15% | S$5,000 |
| 12 months | 1.15% | S$5,000 |
Important Things to Take Note:
To open a fixed deposit account, a minimum of S$5,000 is required for all tenures. As of August 2025, the highest interest rate of 1.25 % p.a. is offered for 3 months and 6-months tenure. Overall, the bank provides competitive rates, especially for placements between 3 to 12 months.
The interest rate stays fixed throughout the deposit period. If you withdraw your money early, there may be penalties, and the interest could be adjusted based on the bank’s withdrawal policy.
UOB Fixed Deposit Rates
| Tenure | Promotional Rate (p.a.) | Min. Deposit |
|---|---|---|
| 6 months | 1.55% | S$10,000 |
| 10 months | 1.40% | S$10,000 |
Important Things to Take Note:
If you want to open a fixed deposit account , a minimum deposit of S$10,000 is required for all tenures. The highest interest rate of 1.75% p.a is offered for 6- months tenure , while the 10-months tenure offers a slightly lower rate of 1.6% p.a.
The interest rate remains fixed for the full deposit period. If you withdraw your money early, you may face penalties and interest earned could be reduced based on the bank’s policy.
Sing Investments & Finance (SIF) Fixed Deposit Rates
Online Placement Promotion:
| Tenure | Promotional Rate (p.a.) | Minimum Deposit |
|---|---|---|
| 3 months | 1.55% / 1.60% | S$1,000 / S$10,000 |
| 6 months | 1.50% / 1.55% | S$1,000 / S$10,000 |
| 12 months | 1.35% / 1.40% | S$1,000 / S$10,000 |
Note: The higher rate applies to deposits of S$10,000 and above.
Over-the-Counter Placement Promotion:
| Tenure | Promotional Rate (p.a.) | Minimum Deposit |
|---|---|---|
| 3 months | 1.55% | S$10,000 |
| 6 months | 1.50% | S$10,000 |
| 12 months | 1.35% | S$10,000 |
Important Things to Take Note:
Online placements offer higher interest rates for deposits of S$10,000 or more. While you can start an online deposit with as little as S$1,000, the higher rates only apply if you deposit S$10,000 or above. For over-the-counter placements, a minimum of S$10,000 is required for all tenures.
The interest rate stays fixed throughout the deposit period. If you withdraw your money early, penalties may apply, and the interest could be reduced according to SIF’s policies.
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.