A fixed deposit is a low-risk investment option where you deposit money in a bank for a specified duration, earning guaranteed interest. It offers a higher interest rate than regular savings accounts, providing a safe and predictable return. Tenures range from 1 month to several years, and early withdrawal may result in penalties.
Here are the rates, promotions, and terms from different banks to make an informed decision for optimal returns on your investment.
Best Fixed Deposit Rates (July 2023)
Here is a summary of some of the best fixed deposit options in Singapore:.
| Bank | Best interest rate (p.a.) | Tenure | Minimum SGD deposit |
|---|---|---|---|
| Bank of China |
| 3 months | S$5,000 |
| Citibank SGD Time Deposit Promotion | 3.68% | 3 months | $250,000 – $3,000,000 (Fresh funds) |
| RHB |
| 6/12 months | S$20,000 |
| CIMB |
| 9 months | S$10,000 and above |
| DBS | 3.2% | 12 months | S$1,000 |
| HSBC Promotional Time Deposit |
| 3 months | S$30,000 |
| Standard Chartered Fresh Funds Time Deposit Promotion |
| 6 months | S$25,000 |
| UOB | 2.70% | 6/10 months | S$10,000 |
| OCBC | 2.70% | 6 months | S$30,000 |
| Maybank Deposit Bundle Promotion | 3.75% | 12 months | S$20,000 |
Note: Singapore banks offer fixed deposit promotion rates (time deposit promotions) to woo depositors into opening a savings account. As such, these fixed deposit rates can change at any time without prior notice.
As of writing, the best fixed deposit rate among the round-up of top banks in Singapore is Maybank’s Deposit Bundle Promotion with a fixed interest rate of 3.75% p.a. for a 12-month term when you hit the minimum deposit requirement of S$20,000.
If you want to start small, you can consider DBS Fixed Deposit since they offer a decent fixed deposit rate of up to 3.2% p.a. for tenures of 12 to 60 months. Plus, you only need a minimum deposit of S$1,000.
Want to use your CPF Ordinary Account Funds? You can avail of OCBC’s CPF Time Deposit Promotional Rate of 2.70% p.a. with a lock-in period of 6 months to help you earn higher returns on your savings.
Best Fixed Deposit Rates by Commitment Period
With a fixed deposit, you’ll invest a sum of money in an account and earn interest for a specific tenure. Additionally, you can open different commitment periods although 3-, 6-, 9-, and 12-month tenures are more common.
After the tenure is up, you can collect your principal amount plus interest. While you can withdraw funds before the commitment period ends, you will forfeit the interest earned and may incur penalty fees.
Bank of China
| Bank of China fixed deposit promotion rate (July 2023) | ||
|---|---|---|
| Tenure | Interest rates (p.a.) (mobile placement) | Interest rates (p.a.) (over the counter) |
| 1 month | 3% | 3% |
| 3 months | 3.5% | 3.5% |
| 6 months | 3.35% | 3.35% |
| 9 months | 3.30% | 3.30% |
| 12 months | 3.20% | 3.20% |
| 18 months | 3% | 3% |
| 24 months | 2.8% | 2.8% |
With the Bank of China, you can earn an interest rate of up to 3.50% per annum for a three-month term – either over-the-counter or through your mobile. For in-person transactions, the same rate is achievable with a minimum deposit of S$5,000.
Please note that the Bank of China updates their fixed deposit interest rates every few months. The stated rate of 3.50% is as per the promotional offer listed on 26th June 2023.
Citibank SGD Time Deposit Promotion
| New Funds Deposit Amount | 3 Months (p.a.) | 6 Months (p.a.) | 12 Months (p.a.) |
|---|---|---|---|
| S$50,000 to < S$250,000 | 3.48% | 3.38% | – |
| S$250,000 to S$3 million | 3.68% | 3.48% | – |
Citibank offers two terms for their fixed deposits: three months and six months. The highest interest rates for these tenures are 3.68% per annum and 3.48% per annum respectively, but to access these rates, a minimum deposit of S$250,000 is required.
RHB
| Tenure | Personal Banking Online Placement (p.a.) | Premier Banking Online Placement (p.a.) |
|---|---|---|
| 3-Month | 3.00% | 3.10% |
| 6-Month | 3.40% | 3.45% |
| 12-Month | 3.40% | 3.45% |
RHB offers a 3.45% per annum interest rate for premier banking customers who opt for online placements of fixed deposits for either a 6 or 12-month tenure.
For those using personal banking services, a 3.40% per annum interest rate can be earned for a 6 or 12-month fixed deposit placement.
These promotional rates require a minimum deposit of S$20,000.
CIMB
| Tenure | Personal Banking Online Promo Interest Rate $10,000 and above | Preferred Banking Online Promo Interest Rate $10,000 and above |
|---|---|---|
| 6 Months | 3.15% | 3.20% |
| 9 Months | 3.35% | 3.40% |
| 12 Months | 3.15% | 3.20% |
Preferred Banking customers can enjoy a fixed deposit interest rate of up to 3.40% per annum with a tenure of 9 months. A minimum deposit of S$10,000 is necessary to avail this rate. The promotional period is ongoing and will end on 31st July 2023.
For Personal Banking customers, the most advantageous interest rate offered by CIMB is 3.35% per annum for a 9-month fixed deposit placement. This too requires a minimum deposit of S$10,000.
HSBC Promotional Time Deposit
| Types of customers | Tenure | Promotional time deposit |
|---|---|---|
| New customers | 3 months | 3.50% p.a. |
| Existing customers | 3 months | 3.45% p.a. |
| 6 months | 3.45% p.a. | |
| 12 months | 3.45% p.a. |
HSBC is currently offering new customers with a promotional fixed deposit rate of 3.50% per annum for a 3-month tenure.
For those who are already HSBC customers, a fixed deposit rate of 3.45% per annum is available for tenures of 3, 6, and 12 months. Please bear in mind that a minimum deposit of S$30,000 is required for HSBC customers to avail these rates.
Best 12-Month Fixed Deposit Rates
In July 2023, the highest fixed deposit rate for a 12-month tenure was offered by RHB at 3.45% per annum. Below is a summary of the top three 12-month fixed deposit rates:
- RHB: 3.45% p.a.
- Bank of China: 3.20% p.a.
- CIMB: 3.15-3.20% p.a.
Best 6-Month Fixed Deposit Rates in July 2023
For a 6-month tenure, you can receive a competitive fixed deposit rate with RHB at 3.45% per annum. Here are the three 6-month highest fixed deposit rates in July 2023:
- RHB: 3.45% p.a.
- Bank of China: 3.35% p.a.
- Citibank: 3.38% p.a.
Best 3-Month Fixed Deposit Rates in July 2023
Citibank offers the highest interest rate for a 3-month fixed deposit at 3.68% per annum in July 2023. The top three 3-month rates are as follows:
- Citibank: 3.68% p.a.
- Bank of China: 3.50% p.a.
- HSBC: 3.50% p.a.
Pros of a Fixed Deposit Account with a Longer Commitment Period
- Choose a longer commitment period if you want to achieve long-term financial goals, such as saving for a home down payment.
- Your money will continue to earn interest throughout the commitment period.
- Long-term tenures usually have attractive high-interest rates which lead to higher returns on maturity
- Earn greater interest, even at board rates.
Cons of a Fixed Deposit Account with a Longer Commitment Period
- Your extra cash will be tied up for 12 months or longer.
- If the fixed interest rates rise further in the months ahead, banks will be offering more attractive promotional rates. If your money is locked in for longer than 12 months, you won’t be able to avail of such promos.
- If you withdraw your money before the maturity period, you will lose interest returns. Plus, you may end up paying penalty fees.
Best Fixed Deposit Rates by Minimum Deposit Amount
Big financial goals are not easy to achieve. But if you start investing and saving now, you’ll be one step closer to achieving it.
Gone are the days when fixed deposits in Singapore come at a hefty minimum deposit amount. Wondering whether you can open a fixed deposit account with your limited cash? Don’t fret! You can open an account for as low as S$500!
Here are the best fixed deposit rates in Singapore July 2023:
- Under S$10,000: Bank of China for 3 months at 3.50% p.a.
- S$20,000 – S$50,000: Maybank for 12 months 3.75% p.a.
- S$250,000 and above: Citbank for 3 months at 3.68% p.a.
| Under S$10,000 | ||
|---|---|---|
| Bank | Best interest rate (p.a.) | Tenure |
| Bank of China |
| 3 months |
| CIMB |
| 9 months |
| DBS | 3.2% | 12 months |
| UOB | 2.70% | 6/10 months |
| S$20,000 to S$50,000 | ||
|---|---|---|
| Bank | Best interest rate (p.a.) | Tenure |
| RHB |
| 6/12 months |
| CIMB |
| 9 months |
| HSBC Promotional Time Deposit |
| 3 months |
| Standard Chartered Fresh Funds Time Deposit Promotion |
| 6 months |
| OCBC | 2.70% | 6 months |
| Maybank Deposit Bundle Promotion | 3.75% | 12 months |
| $250,000 – $3,000,000 | ||
|---|---|---|
| Bank | Best interest rate (p.a.) | Tenure |
| Citibank SGD Time Deposit Promotion | 3.68% | 3 months |
1. Bank of China Fixed Deposit Rates: For Under S$10,000 Deposit Amounts
You can start earning 3.50% p.a. for a minimum deposit of S$5,000. On top of the affordable deposit amount, BOC also has a flexible commitment period. Whether you lock in for less than 12 months, you can still avail of the same promotional interest rate.
2. Maybank Deposit Bundle Promotion: Best for Deposit Amount of S$20,000 – S$50,000
Maybank’s current promotional rate of 3.75% p.a. is available for a minimum fresh funds placement of S$20,000. You can enjoy these rates within a lock-in period of 12 or 15 months.
3. Citibank Fixed Deposit Rate: Best for Deposit Amounts of S$250,000 and above
Do you have a significant lump sum of cash that you’re not going to use within a 3-month term? Consider opening a Citibank Fixed Deposit Account. Citibank is currently offering a promotional rate of 3.48% p.a. for a minimum deposit amount of S$50,000. But if you can hit the minimum fresh funds deposit of S$250,000, you can enjoy interest rates of up to 3.68% p.a.
Pros of a Fixed Deposit Account with a Higher Minimum Deposit Amount
- You will have a higher amount of forced savings, perfect for long-term financial goals.
- Higher deposit amounts, such as a fresh fund placement of S$20,000, typically have higher promotional interest rates than lower deposit amounts, such as S$1,000.
- You will earn higher interest returns at the end of the maturity period.
Cons of a Fixed Deposit Account with a Higher Minimum Deposit Amount
- Since it is a fixed deposit, you won’t be able to use the money throughout the lock-in period.
- If you make a premature withdrawal from your fixed deposit account, you will incur penalty fees. Plus, you will receive no interest returns.
- You will not be able to use your money in case of an emergency.
How To Choose the Best Fixed Deposit Account for You?
By now, you already have an idea of the pros and cons of fixed deposits (FDs). Plus, you already know the fixed promotional interest rates offered by major banks in Singapore. But before you open an FD account, consider these tips to choose the best one.
- Interest Rates: The higher the fixed interest rate, the greater your returns. Choose a bank that offers competitive rates.
- Deposit Tenures: Usually, longer terms yield higher interest rates. Select a term you’re comfortable with and aligns with your financial goals.
- Minimum Deposit Amounts: Opt for an account that requires an affordable minimum deposit. Some banks offer competitive rates with low initial deposits.
- Consider the Penalties: Understand the penalties for early withdrawal before committing.
- Choose a Reliable Bank: Opt for a reputable, experienced bank. Customer reviews can provide insights into their reliability.
Compare rates, tenures, and terms across various banks before making a decision. This helps ensure the chosen account aligns with your needs.
How Do Fixed Deposit Accounts Compare to Best Savings Accounts in Singapore?
| Fixed Deposit Accounts | Savings Accounts | |
|---|---|---|
| Nature of Investment | Low-risk investment with a preset sum of money deposited for a fixed period at an agreed interest rate. | More flexible, allowing deposit and withdrawal of funds as needed. |
| Interest Rates | Typically range from 2.90% to 3.88% p.a. Rates change monthly and interest is directly proportional to the deposit amount and term length. | Depends on account balance and specific conditions. Some accounts like UOB One, DBS Multiplier, and OCBC 360 offer rates up to 7.8% p.a. under certain conditions. |
| Conditions | No specific conditions other than the fixed deposit amount and term. | May require maintaining a minimum balance, salary crediting, or credit card spending to earn higher interest. |
| Access to Funds | Usually has penalties for early withdrawal. | Offers greater flexibility in transactions, but fulfilling certain conditions may be needed for higher interest. |
| Management | Provides a predictable return with minimal effort. | Might require proactive management to maximize earnings. |
| Purpose | Suitable for those looking for guaranteed returns over a specific period. | Useful for those needing more flexibility and potentially higher returns given the fulfillment of certain conditions. |
Both fixed deposit and savings accounts cater to different financial needs and preferences. Fixed deposit accounts are better suited for those who prefer a low-risk, hands-off approach and are willing to lock in their money for a certain period to get guaranteed returns. They are particularly suitable for conservative investors who want to protect their capital and get a steady, predictable return.
On the other hand, savings accounts offer more flexibility and potentially higher returns, but these come with certain conditions. They require more active management, including maintaining a minimum balance, salary crediting, or credit card spending. For individuals who have a steady income stream and can fulfill these conditions, savings accounts might provide a higher return than fixed deposits. However, the higher potential returns come with more volatility and less predictability than fixed deposits.
FAQ
1. How Does a Fixed Deposit Work?
A Fixed Deposit is a type of savings account that you can open for a set commitment period. You will need to deposit an amount to your account and you’ll earn a fixed interest rate throughout the fixed deposit term. You will be able to collect your deposit plus interest earned at the maturity date.
It is a relatively low-risk and convenient way to earn a guaranteed return. However, your money will be locked and you won’t be able to access it. Plus, you can’t top up your savings or earn any bonus interest rates.
2. Which Bank Is Giving 7% Interest on FD?
Unfortunately, no banks in Singapore provide a 7% p.a. interest rate on fixed deposits. The highest interest rate offered by banks is 4% p.a. As of writing, HSBC is offering a promotional rate on 7-month SGD Time Deposits of 4% p.a.
Note that fixed deposit interest rates may change at any given time. Additionally, banks have different promotional rates, tenures, and deposit amounts. It is best to do your due diligence and compare your options by checking the bank’s official website to get the latest information.
3. Is Fixed Deposit a Good Investment?
Fixed Deposits are a great way to earn guaranteed returns on your savings while being virtually risk-free. However, it will still depend on your financial goals and needs. A fixed deposit is a good investment if:
- You have extra cash which you will not need in the immediate future. You can open an FD account for as low as S$1,000 and earn a promotional rate of 3.2% p.a.
- You want a risk-free and convenient investment. Even if something were to happen to the bank, your deposit and interest are protected by SDIC up to S$75,000.
- You want to make sure that your savings will stay in the bank. Since you won’t be able to easily withdraw your money without incurring penalties, you are forced to save.
But if you want to maximize your capital growth, you may want to consider higher-risk investments, such as stock market or real estate trading. These options have much higher returns as compared to fixed deposits.
Read Also: Mutual Funds Singapore and Fixed Deposits vs Endowment Plans
Closing
This year, fixed deposit rates are rising above 4% p.a., making it an attractive investment option for risk-averse individuals. But choosing which bank to stash your hard-earned savings can be overwhelming. On top of that, you need to consider whether the fixed deposit interest rate is competitive enough and at what commitment period to lock in.
Key Takeaways:
- Best fixed deposit rates by commitment period:
- 3-month FD term: Citibank at 3.68% p.a. at S$250,000 minimum deposit
- 6-month FD term: RHB at 3.45% p.a. at S$20,000 minimum deposit
- 12-month FD term: RHB at 3.45% p.a. at S$20,000 minimum deposit and above
- Best fixed deposit rates by minimum deposit amount:
- Under S$10,000: Bank of China for 3 months at 3.50% p.a.
- S$20,000 – S$50,000: Maybank for 12 months 3.75% p.a.
- S$250,000 and above: Citbank for 3 months at 3.68% p.a.
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