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Working Adult: Putting Your Money Into Fixed Deposit, Which Is The Best?

Fixed Deposit, some of our parents’ favourite financial product

Beating inflation is not as difficult as it sounds if you understand some of the investment products available.

The core inflation in Singapore is at 1.9% (average for the past 10 years), but banks are giving out interest for as low as 0.05% for your deposits and savings.

So here’s the deal…

Most of our parents or Singaporeans would have received a phone call from their banks to be recommended a fixed deposit should there be a substantial amount of savings.

While bank offers you

  • liquidity for your deposit at a lower interest rate
  • or you can choose to let go of liquidity for higher interest rate

Given that the first option with a lower interest rate will not be able to help beat inflation, the second option with a higher interest rate above inflation rate sounds like a good idea.

That second option is also known as Fixed Deposits.


What is a fixed deposit?

Fixed deposit, also known as time deposit accounts are financial instrument provided by banks that provides you with a higher interest rate than a regular savings account. The money, however, must stay in the account for a fixed period of time.

Here are some of the pros and cons of fixed deposit

Pros of fixed deposit

Fixed deposit is popular among some Singaporeans due to a few reasons:

  • Investors technically need not do anything except giving up their liquidity for the additional interest rate
  • Virtually risk-free as up to $50,000 of the amount is insured by Singapore Deposit Insurance Corporation (SDIC)
  • By locking up an amount of money, it helps a certain group of people save better.

Cons of fixed deposit

For additional interest rate, parking your money into a fixed deposit has its cons too:

  • One will be giving up the liquidity of a portion of his savings to be locked up for a fixed amount of time, in order to get the interest.
  • Withdrawing your money before the deposit reaches its maturity will result in one receiving less interest.
  • Fixed deposit usually requires a minimum placement of a certain amount.

TL;DR: Fixed deposit comparison: Which is the best in Singapore?

To digest the chunk of information, we simplify our comparison to short-term tenor (1, 3 and 12 months) to longer-term tenor (24 months and more than 24 months), according to investment amount.

Do also note that, we exclude all the promotions that are going on now and that all these are for SGD fixed deposits only.

Also, do note that, the longer one parks his fixed deposit with the bank, the higher the interest rate he will receive (duh!).

 

Best interest rate for Fixed deposit, S$20,000 and below:

  • 1 Month: CIMB at 0.2% per annum
  • 3 Months: CIMB at 0.35% per annum
  • 12 Months: Maybank and CIMB at 0.7% per annum
  • 24 Months: CIMB, DBS and Maybank at 1% per annum
  • More than 24 Months: OCBC at 1.25% per annum for a tenor or 48 Months

Best interest rate for Fixed deposit, S$50,000 and below:

  • 1 Month: CIMB at 0.2% per annum
  • 3 Months: Bank of China and CIMB at 0.35% per annum
  • 12 Months: CIMB and Maybank at 0.7% per annum
  • 24 Months: CIMB, DBS and Maybank at 1% per annum
  • More than 24 Months: DBS at 1.2% per annum for a tenor of 60 Months

Best interest rate for Fixed deposit, S$100,000 and below:

  • 1 Month: CIMB at 0.2% per annum
  • 3 Months: Bank of China and CIMB at 0.35% per annum
  • 12 Months: CIMB and Maybank at 0.7% per annum
  • 24 Months: CIMB, DBS and Maybank at 1% per annum
  • More than 24 Months: DBS at 1.2% per annum for a tenor of 60 Months

Best interest rate for Fixed deposit, S$500,000 and below:

  • 1 Month: CIMB at 0.2% per annum
  • 3 Months: Bank of China and CIMB at 0.35% per annum
  • 12 Months: CIMB and Maybank at 0.75% per annum
  • 24 Months: CIMB and Maybank at 1.1% per annum
  • More than 24 Months: Maybank at 1.8% per annum for a tenor of 36 Months

Best interest rate for Fixed deposit, S$500,000 and above:

  • 1 Month: CIMB at 0.2% per annum
  • 3 Months: Bank of China at 0.375% per annum
  • 12 Months: CIMB at 0.7% per annum
  • 24 Months: CIMB and Maybank at 1.1% per annum
  • More than 24 Months: Maybank at 1.8% per annum for a tenor of 36 Months

Further reading: Individual Banks and their fixed deposit interest rate in Singapore

 

Bank of China (BOC) Time Deposit Interest Rates

Tenor
(Lock-in period)
Placement Amount
(S$)
5K - 20K20K - 50K50K - 100K100K - 300K300K - 500K500K and above
1 Month0.175%0.1875%
3 Months0.3%0.35%0.375%
6 Months0.4%0.45%0.5%
9 Months0.45%0.5%0.625%
12 Months0.6%0.6875%
24 Months0.7%0.725%0.76%
36 Months0.7%0.725%0.95%

CIMB Singapore Dollar Fixed Deposit Interest Rates

  • Minimum Initial deposit: S$1,000
  • S$5,000 for 1 or 2-month tenture

Tenor
(Lock-in period)
Placement Amount
(S$)
5K - 100K100K and above
1 Month0.2%
2 Months0.3%
3 Months0.35%
6 Months0.40%0.50%
9 Months0.55%0.60%
12 Months0.7%0.75%
24 Months1%1.1%


Citibank Singapore Dollar Time Deposit Interest Rates

Tenor
(Lock-in period)
Placement Amount
(S$)
10K - 50K50K - 100K100K - 250K250K - 500K500K - 750K750K - 1 Million1 Million - 3 Million
1 Week
2 Weeks
1 Month
0.05%
2 Months
3 Months
0.08%
6 Months
12 Months
24 Months
36 Months
0.1%


DBS Singapore Dollar Fixed Deposit Interest Rates

Tenor
(Lock-in period)
Placement Amount
(S$)
Any amount below S$1,000,000
1 Month
2 Months
0.05%
3 Months
4 Months
5 Months
0.15%
6 Months
7 Months
8 Months
0.2%
9 Months0.5%
10 Months
11 Months
12 Months
0.6%
18 Months0.8%
24 Months1%
36 Months1.1%
48 Months1.15%
60 Months1.2%

HSBC Singapore Dollar Fixed Deposit Interest Rates

Tenor
(Lock-in period)
Placement Amount
(S$)
5K - 50K50K - 100K100K - 200K200K - 500K500K - 1 MillionAbove 1 Million
1 Month0.05%

0.08%
(HSBC Premier)
3 Months0.1%

0.13%
(HSBC Premier)
6 Months0.15%

0.18%
(HSBC Premier)
9 Months0.2%

0.23%
(HSBC Premier)
12 Months0.25%

0.28%
(HSBC Premier)
24 Months0.65%

0.7%
(HSBC Advance)

0.75%
(HSBC Premier)

 

Maybank Singapore Dollar Time Deposit Interest Rates

  • Minimum deposit for 1 Month is S$10,000
Tenor
(Lock-in period)
Placement Amount
(S$)
1K - 50K50K - 100K100K - 250K250K - 1 Million
1 Month0.2%
2 Months0.3%
3 Months0.35%
6 Months0.4%0.45%0.5%
9 Months0.55%0.6%
12 Months0.7%0.75%
18 Months0.9%0.95%
24 Months1%1.1%
36 Months1.8%


OCBC Singapore Dollar Time Deposit Interest Rates

Tenor
(Lock-in period)
Placement Amount
(S$)
5K - 20K20K - 50K50K - 100K100K - 250K250K - 500K500K - 1 Million
1 - 2 Months0.05%
3 - 5 Months0.1%
6 Months
7-8 Months
0.15%
9-11 Months0.2%
12 - 14 Months0.25%
15 Months
18 Months
24 Months
0.55%
36 Months0.65%
48 Months1.25%----


Standard Chartered Singapore Dollar Time Deposit Interest Rates

Tenor
(Lock-in period)
Placement Amount
(S$)
5K - 20K20K - 50K50K - 100K100K - 500K500K and above
1 Month0.05%
3 Months0.1%
6 Months0.2%
9 Months0.3%
12 Months0.35%
15 Months0.5%
18 Months0.5%
24 Months0.55%
36 Months0.72%
48 Months0.9%
60 Months1.15%


UOB Singapore Dollar Fixed Deposit Interest Rates

Tenor
(Lock-in period)
Placement Amount
(S$)
5K - 50K50K - 250K250K - 500K500K - 1 Million
1-2 Month0.05%
3 - 5 Months0.1%
6 -8 Months0.15%
9 - 11 Months0.2%
12 - 15 Months0.25%
18 Months0.5%
24 Months0.7%
36 Months1%

 

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