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Maximizing Returns: Best USD Fixed Deposit Rates in SG (2024)

usd fixed deposit rates singapore
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A USD fixed deposit is a viable alternative to local dollar accounts due to their generally high-interest rates. Suppose you can spare cash for one week up to 24 months or longer. In that case, the foreign currency fixed dollar deposit can be your best investment for earning decent returns.

Singapore’s banks now offer USD fixed deposits with attractive interest rates of up to 7.5% p.a. to customers depending on deposit tenures and other requirements from banks.

Interest income is your primary consideration. Besides, consider others, such as the timeline for using the funds, exchange rates, banks, and basic deposit requirements. These all affect how you choose the best USD fixed deposit in 2024. You can learn more by continuing to read.

Understanding USD Fixed Deposits

The US central bank, the Federal Reserve System, or the Fed, had increased the US Federal Funds Rates (FFR) several times to curb inflation in 2023. An FFR, set by the Federal Open Market Committee (FOMC), is a benchmark overnight rate banks lend and borrow in the market. A high Federal Funds Rate leads banks worldwide to offer higher interest returns to attract funds from depositors.

A USD fixed deposit pays higher interest income to depositors than savings accounts in exchange for keeping the funds in an account with a bank or other financial institutions for a fixed period.

“The Fed’s aggressive rate hikes to combat inflation will likely continue in 2024, further pushing up USD fixed deposit rates in Singapore,” said Mr. Sun Yufei, UOB economist.

Features of a USD Fixed Deposit

  • Guaranteed principal and interest income: A USD fixed deposit promises to pay an interest income committed with funds deposited at the end of a fixed period.
  • Early withdrawal penalty: A depositor requiring withdrawal before a whole period may get little or no interest income. Usually, the penalty is the waiver of interest income charged by a bank.
  • Tenure: It varies among banks, ranging from 1 week to 24 months maximum.

Singaporeans are increasingly turning to foreign currency investments…The US dollar has emerged as the preferred currency to invest in, contributing to the majority of foreign currency inflows among major banks,” According to Bloomberg.

Comparing Bank Rates

The best USD fixed deposit rates in Singapore are below:

BanksInterest rates p.a.Minimum amounts in USDTenures
CIMB4.63%10,0003 months
DBS4.90%5,0003 months
HSBC4.45%25,0003 months
ICBC4.85%5003 months
OCBC4.71%5,0003 months
UOB5%50,0003 months
CIMB4.6%10,0006 months
DBS4.53%5,0006 months
HSBC4.60%25,0006 months
ICBC4.85%5006 months
OCBC4.40%5,0006 months
UOB4.60%5,0006 months
CIMB4.55%10,00012 months
DBS4.13%5,00012 months
HSBC4.70%25,00012 months
ICBC4.80%50012 months
OCBC4%5,00012 months
UOB4.30%5,00012 months

The data are for reference only, and depositors may get higher deposit rates for more significant amounts and other criteria. You should consult banks for more details.

Further Details

CIMB Bank logo

1. CIMB – Best for Flexible Deposit Services

About: CIMB, a leading financial institution in Singapore offering clients a wide range of banking and financial products and services, specializes in digital banking and innovative financial solutions.

Key Features

  • Flexible tenures: CIMB offers broad tenure options to clients ranging from 1 month to 24 months, maximum.
  • User-friendly account opening: Clients can open USD fixed deposits using online banking or its mobile app, making deposits fast and straightforward.
  • Automatic renewal option: Another benefit is the automatic renewal function, which makes earnings seamless and effortless.

Promotional* and broad rates

CIMB offers promotional rates for online USD fixed deposit services with a minimum of USD 10,000.

Board rates

TenuresBoard rates
3 months5.45%
6 months 5.35%
12 months5.25%

Minimum deposit requirements: USD10,000

Website: https://www.cimb.com.my

Review: 5 stars/4 reviews. “I must commend the outstanding service I received from the customer service team. The staff exhibited exceptional patience and efficiently addressed all my queries.” Adrian 6535 

DBS Bank logo

2. DBS – Best for Long-term USD Fixed Depositors

About: DBS Singapore, a Singapore-based and leading financial bank in Southeast Asia, offers comprehensive banking and financial products.

Key Features

  • Multiple deposit options: Flexible options, such as a lump sum, regular savings, or automatic transfer, are available to meet clients’ needs.
  • Multiple deposit tenures: DBS offers comprehensive tenure options, ranging from 1 month to 36 months, allowing clients more investment choices.
  • Early withdrawals: An early withdrawal fee applies if a client surrenders a deposit before a full term.

Promotional* and Board rates

Board rates

TenuresBoard rates (up to USD 9,999)
3 months4.85%
6 months 4.43%
12 months4.08%

Minimum deposit requirements: USD 5,000

Website: https://www.dbs.com.sg

Review: 1 star/6 reviews.Severely understaffed with overtired and overworked employees. I needed counter service today just as many here do and I was added to the queue and told it would take an hour for the wait.” Jade Wangdi

OCBC Bank logo

3. OCBC – Best for Small Depositors

About: OCBC is one of the leading financial institutions in Singapore, focusing on digital banking and financial solutions for clients.

Key Features

  • Low minimum deposit requirements: Investors can start with an amount as low as USD 5,000, entitling more investors with high-interest income.
  • Automatic renewal: OCBC also allows clients to auto-renew the USD fixed deposits at maturity to benefit from interest income seamlessly.
  • User-friendly account opening procedures: Clients can use OCBC’s internet banking or its mobile app to open a USD fixed deposit and begin earning interest in easy steps.

Promotional* and Board rates

Board rates

TenuresBoard rates p.a. (up to USD 49,999)
3 months4.64%
6 months4.33%
12 months4.04%

Minimum deposit requirements: USD 5,000

Website: https://www.ocbc.com/group/gateway

Review: 5 stars/38 reviews. “Customer service lady at Premier centre was very nice.” Sharon Lee

UOB logo

4. UOB – Best for Traditional Depositors

About: UOB, one of 3 leading banks in Singapore and a leading financial institution in Southeast Asia, provides clients with comprehensive banking services and financial products using innovative technology and excellent customer services.

Promotional* and Broad rates

Board rates

TenuresBoard rates p.a. (up to USD 49,999)
3 months4.86%
6 months4.49%
12 months4.22%

Minimum deposit requirements: USD 5,000

Website: https://www.uob.com.sg

Review: 1 star/5 reviews.Had to come here to withdraw FD as they don’t allow it in online banking.” epsonwe epsonwe

HSBC logo

5. HSBC – Best for Depositors in Favor of High Promotional Rates 

About: HSBC, headquartered in the UK, is a leading international bank with a strong presence in Singapore, specializing in digital banking and financial solutions to clients.

Key Features

  • Multiple tenures: HSBC offers flexible fixed deposit options, ranging from 1 month to 24 months, with interest rates up to the highest of 3% p.a.
  • Competitive interest rates: The bank offers competitive interest rates of up to 5.10% p.a. for promotions.
  • Easy account opening procedure: HSBC provides clients with Internet banking and a mobile app for opening a USD fixed deposit account like other Singapore banks. Besides, a client can manage his local or foreign currency fixed deposit by registering auto-renewal services on the mobile app.

Promotional rates with placement amounts start from USD30,000.

TenuresInterest rates p.a.
3 months5.10%
6 months4.90%
12 months4.50%

Minimum deposit requirements: USD30,000

Website: https://www.hsbc.com.sg

Review: 5 stars/1 review. “I would like to acknowledge the high level of customer service provided by Jovelle Toh from Orchard Road branch.” Tack Loong Lee

*Banks currently do not offer client promotions.

Advantages of USD Fixed Deposits

  • Global currency: The US dollar is a primary reserve currency worldwide. It acts as a hedge against economic and market uncertainties during tumultuous times few other currencies can do. Investors use the US dollars as safe and liquid investments globally.
  • Diversification: Besides SGD investments, you can use USD fixed deposits to earn high-interest income and a hedge against SGD’s or others’ unexpected fluctuations. If local or other currencies’ depreciate, a stable or rising US dollar may offset the losses brought by other currencies’ underperformance.
  • Exposure to the US economy: Investing in US dollars is an indirect investment in the US economy, the biggest economy in the world, and can stabilize the global economy. The USD dollar fixed deposits help cushion fluctuations caused by other currency investments. Besides, the US dollars act as a parking venue for other further US investments without the risk of loss due to currency conversion.

Risks and Considerations

  • Currency fluctuations: The US dollar may swing in value against the Singapore dollar. Suppose the local currency rises against the US dollar. In that case, the value of the US investment, a foreign currency time deposit, will fall and may not offset the returns earned due to higher interest rates.
  • Protection from SDIC: The Singapore Deposit Insurance Corporation (SDIC) does not protect depositors from deposit losses due to bank failure, except for the Singapore dollar. Investors should consider the risk involved before choosing a secure institution besides return consideration.
  • Early withdrawal charges: You are likely to pay an early deposit withdrawal charge before maturity. The penalty is usually the interest income from your principal deducted from your deposit. 

The investment horizon is the second main factor to consider after interest returns. Finally, consider the liquidity caused by your USD fixed deposit tenure before drafting a suitable investment plan.

Making an Informed Decision

To maximize your returns, you should consider a series of factors. The following should form a part of your deliberations:

  • Financial goals: What do you want from other foreign currency time deposits? How much will you benefit from investing in a USD fixed deposit? Which should you choose, USD deposits or other foreign currency deposits? Knowing your financial plan helps you achieve it. A financial advisor may be a good option for you.
  • Risk acceptance level: A US dollar fixed deposit involves exchange rate risks like other foreign currencies. You may lose interest returns and even part of your principal in case of severe ups and downs in the currency market. Currency risk positively correlates with a foreign currency fixed deposit, including the US dollar. 
  • Investment horizon: Besides fixed deposit interest rates, you may need a time frame to redeem and lock up your profits. A well-planned investment horizon may help you captivate your profits and smoothly transition to other paths toward other financial objectives.

“We expect USD deposit rates in Singapore to stabilize in 2025 as the Fed potentially slows down its rate hikes,” said Mr. Michael Synnott, Standard Chartered head of treasury products.

making informed decisions

FAQs

1. What are the interest rates for DBS FD USD?

The interest rates for USD fixed deposits of DBS bank in Singapore are below:

Placement Amount in USD3 months p.a.6 months p.a.12 months p.a.
<10,0004.85%4.85%5%
<100,0004.42&4.42&4.72%
<250,0004.07%4.07%4.37%

2. How do I place a USD FD in DBS?

3 steps to place a USD FD in DBS: 

  1. Open a DBS savings or currency account.
  2. Download the DBS’s digital app or log in to the online bank.
  3. Open by placing a USD or foreign currency time deposit.

3. What are the current interest rates for fixed deposits in the USA?

The USA’s interest rates for fixed deposits, also called certificates of deposits (CD), vary among banks. They range from 4-5.5% APY (annual percentage yield) p.a. The tenures allow from 6 months to 5 years.

4. Who has the best FD rate in Singapore now?

Unfortunately, the best interest rate varies among banks, depending on investment horizons and placement amounts. DBS offers up to 5.09% p.a. for its 2-month fixed deposit of USD250,000 to USD500,000. 

Don’t forget the exchange rate risk from a USD fixed deposit! Dual currency investments consisting of investing in the Singapore dollar and the US dollar are one of the risk solutions.

Final Thoughts

USD fixed deposit is a sound alternative to the Singapore dollar fixed deposit. Investors can use it as a parking place for idle cash before other investment opportunities arrive. Prudent planning is a prerequisite, as funds in a fixed deposit are tied up for a period.

Key Takeaways:

  • Best USD fixed deposit rates vary, depending on investment horizons and financial goals.
  • CIMB, DBS, OCBC, UOB, and HSBC offer competitive fixed deposit interest rates with fewer strings attached.
  • A USD fixed deposit acts as an investment haven and a hedge against risks from your investment portfolio.

Whether you’re a seasoned investor or new to the game, Loan Advisor offers a platform to compare and choose from the best licensed moneylenders in Singapore. Request loan quotes now to compare your options.

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