Singapore markets close in 4 hours 17 minutes
  • Straits Times Index

    3,257.99
    -25.36 (-0.77%)
     
  • Nikkei

    27,113.13
    -475.24 (-1.72%)
     
  • Hang Seng

    24,656.46
    0.00 (0.00%)
     
  • FTSE 100

    7,297.15
    -196.98 (-2.63%)
     
  • BTC-USD

    36,087.52
    +109.62 (+0.30%)
     
  • CMC Crypto 200

    821.53
    +10.93 (+1.35%)
     
  • S&P 500

    4,410.13
    +12.19 (+0.28%)
     
  • Dow

    34,364.50
    +99.13 (+0.29%)
     
  • Nasdaq

    13,855.13
    +86.21 (+0.63%)
     
  • Gold

    1,842.50
    +0.80 (+0.04%)
     
  • Crude Oil

    83.64
    +0.33 (+0.40%)
     
  • 10-Yr Bond

    1.7350
    -0.0120 (-0.69%)
     
  • FTSE Bursa Malaysia

    1,514.87
    -6.99 (-0.46%)
     
  • Jakarta Composite Index

    6,655.17
    -71.21 (-1.06%)
     
  • PSE Index

    7,252.64
    -40.88 (-0.56%)
     

7 Best Fixed Deposit Rates in Singapore (Jan 2022) — DBS, CIMB & More

·10-min read

Fixed deposit (sometimes called time deposit) accounts are low-risk investments that earn you interest over a fixed commitment period. You don’t need to do anything to earn this interest, just park your money with a bank. Think of it like mold on a piece of bread. Just leave it out in the open and mold will grow — FREE! — on your bread for you.

Seriously, though, fixed deposits are great if you have a substantial amount of money lying around and you don’t want to risk investing it. Fixed deposits are an extremely low risk way to grow your money.

The downside is that their returns aren’t so great. In pre-Covid times, it was possible to earn up to 2% p.a. on a fixed deposit, but these days, fixed deposit interest rates remain low (although they might still be better than savings accounts).

Best fixed deposit rates in Singapore (January 2022)

We’ve picked the highest fixed deposit rates for SGD in attainable deposit amounts (i.e. $50,000 and below).

Bank/financial institution

Min. deposit amount

Tenure

Interest rates

CIMB

$10,000

18 months

0.75% p.a.

Hong Leong Finance

$20,000

36 months

0.9% p.a.

DBS

$1,000

8 months

0.6% p.a.

ICBC

$500

12 months

0.6% p.a.

Maybank

$1,000

36 months

0.6% p.a.

UOB

$20,000

10 months

0.5% p.a.

RHB

$20,000

12 months

0.50% p.a.

OCBC

$20,000

12 months

0.4% p.a.

Standard Chartered

$25,000

8 months

0.4% p.a.

HSBC

$30,000

9 months

0.5% p.a.

Note that most of these promotional interest rates, which change monthly and the bank can change the rates anytime. The exception is DBS’ fixed deposit rate, which is non-promotional.

CIMB fixed deposit rates (January 2022)

CIMB fixed deposit rate

Interest rate

0.75% p.a.

Deposit amount

Min. $10,000

Tenure

18 months

Malaysian bank CIMB tops the fixed deposit chart for the month with their 0.75% p.a. promotion if you are not a CIMB Preferred customer.

This promo is for deposits of at least $10,000. However, to enjoy this rate, you need to lock it up for 18 months. This promo extends to both new and existing CIMB Personal Banking and CIMB Preferred customers.

Hong Leong Finance fixed deposit rates (January 2022)

Hong Leong Finance fixed deposit rate

Interest rate

0.9% p.a.

Deposit amount

Min. $20,000

Tenure

36 months

Apart from the big banks like DBS, UOB and OCBC, the fixed deposit aficionado should also look at non-bank financial institutions like Hong Leong Finance as they also offer promotions. They may not be quite as risk-free as banks, though.

This month, Hong Leong is offering 0.9% for 36 months, 0.8% p.a. for 24 months, or 0.6% for 12 months, but it also requires a significant sum of $20,000, and this promotion has been ongoing since Deepavali to Chinese New Year.

Before you lock up that much in a fixed deposit, make sure you have sufficient emergency funds first.

DBS fixed deposit rates (January 2022)

DBS fixed deposit rate

Interest rate

0.6% p.a.

Deposit amount

$1,000 to $19,999

Tenure

8 months

The current highest DBS fixed deposit rate is 1.3% p.a. for those who have $1,000 – $19,999 for 18 months. However, DBS has stopped taking in fixed deposits above 8 months. So, if you’re already on an existing DBS fixed deposit programme, heng ah!

If you’re opening a new fixed deposit account, the highest you can go is 0.6% p.a. for 8 months. The only consolations are that the lock-in period is relatively short, and the minimum of $1,000 is quite a manageable amount.

DBS logo
DBS logo

Total Interest Earned

S$40

Total Interest Earned

DBS Singapore Dollar Fixed Deposit

Min. Deposit

S$1,000

Tenure

1 to 60 months

Interest Rate (p.a.)

0.6%

Total Interest Earned

S$40

Read More

More Details

Key Features

  • Low minimum replacement of S$1,000 with tenures ranging from 1 month to 36 months

  • Access credit facilities secured against your deposit

See all card details

ICBC fixed deposit rates (January 2022)

ICBC fixed deposit rate

Interest rate

0.6% p.a.

Deposit amount

Min. $500

Tenure

12 months

It used to be that you needed at least $20,000 lying around in order to benefit from the higher promotional interest rates. However, now that the general rates have gone down, suddenly the lower-commitment options are a lot more competitive.

All the above fixed deposits have pretty low barriers to entry, but Chinese bank ICBC takes the cake by requiring just a $500 minimum deposit.

You get an okay-ish 0.6% p.a. (if you apply for this fixed deposit online via ICBC e-banking) with a commitment period of 12 months.

Maybank fixed deposit rates (January 2022)

Maybank fixed deposit rate

Interest rate

0.6% p.a.

Deposit amount

Min. $1,000

Tenure

36 months

You can earn 0.6% p.a. with Maybank’s Singapore Dollar Time Deposit. Unfortunately you have to leave it in for 36 months (3 whole years!) to earn that measly 0.6% p.a.

If you don’t want to commit for the time it takes to build a BTO flat, there are shorter commitment fixed deposits like 0.5% for 24 months or 0.4% for 18 months.

Maybank logo
Maybank logo

Total Interest Earned

S$615

Total Interest Earned

Maybank Singapore Dollar Time Deposit

Min. Deposit

S$1,000

Tenure

1 to 36 months

Interest Rate (p.a.)

2.05%

Total Interest Earned

S$615

Read More

More Details

Key Features

  • Low minimum replacement of S$1,000 with tenures ranging from 1 month to 36 months

  • Access overdraft Facilities

  • Enjoy auto-renewal

See all card details

UOB fixed deposit rates (January 2022)

UOB fixed deposit rate

Interest rate

0.5% p.a.

Deposit amount

Min. $20,000

Tenure

10 months

Right now, local bank UOB is offering only 0.5% p.a. on their 10-month fixed deposits. The saving grace is that the lock-in period is relatively short.

Note that if you have an UOB fixed deposit that’s maturing this month, UOB will auto-renew your account at the current “promotional” rate. You might want to check and update your standing instructions.

UOB logo
UOB logo

Total Interest Earned

S$37.50

Total Interest Earned

UOB Singapore Dollar Fixed Deposit

Min. Deposit

S$5,000

Tenure

1 to 36 months

Interest Rate (p.a.)

0.45%

Total Interest Earned

S$37.50

Read More

More Details

Key Features

  • Interest paid annually for 24 and 36 month tenures

  • Access overdraft facilities

  • Enjoy auto-renewal

See all card details

RHB fixed deposit rates (January 2022)

RHB fixed deposit rate

Interest rate

0.5% p.a.

Deposit amount

Min. $20,000

Tenure

12 months

If you have $20,000 to spare, another fixed deposit promo to consider is with Malaysian bank RHB. If you are an RHB Premier customer, you get a higher 0.55% interest rate instead.

RHB logo
RHB logo

Total Interest Earned

S$136

Total Interest Earned

RHB Singapore Dollar Fixed Deposit (Premier Banking)

Min. Deposit

S$20,000

Tenure

12 months

Interest Rate (p.a.)

0.68%

Total Interest Earned

S$136

Read More

More Details

Key Features

  • Offer of $60 shall be credited into the account for an amount of $200K and above. This offer is valid till the end of Aug ’21.

  • For other tenures, kindly refer to the RHB website for the latest rates

  • Flexible choice of deposit tenure

  • Enjoy auto-renewal

  • Terms and Conditions Apply

See all card details

What about HSBC, Standard Chartered and OCBC fixed deposits?

The rest of the banks — OCBC, Standard Chartered and HSBC — are offering even poorer deals on their fixed deposits, which is hardly worth your time.

In fact, you can get 1% p.a. on your savings (up to $10,000) with no lock-in just by opening a regular CIMB FastSaver account and applying/ activating a CIMB Visa Signature Credit Card.

Of course, banks are notoriously fickle about their interest rates, and all these could easily change next month. For the latest promotional rates, remember to bookmark this page and our MoneySmart fixed deposit comparison page before you commit.

Plus, here’s a quick and easy summary of what you need to know about fixed deposits.

Fixed deposit vs savings account — what’s the difference?

Once an attractive alternative to the 0.05% p.a. interest on savings accounts, fixed deposits are fading from collective memory. Today, every bank in Singapore is competing for your dollar with high interest savings accounts, which may actually offer better returns.

Here are the differences between fixed deposits and savings accounts at a glance:

Fixed deposit

Savings account

Tenure

As low as 3 months, but go for at least 12 months for better rates

None

Interest rate

The longer the tenure, the better the interest rate

Usually the same regardless of tenure

Amount to deposit

Fixed amount, usually at least $10,000

Smaller initial deposit and minimum monthly balance ($500 to $3,000)

Currency

SGD by default, but some banks offer higher interest rates for foreign currency

SGD by default. There are a few multi-currency accounts, but no difference in interest rate

Can you withdraw?

Contrary to popular belief, yes, but you lose the interest

Yes, no impact on interest, but don’t fall below the minimum balance

Interest payments

Quarterly or annually

Monthly

Risk level

Virtually risk-free, insured up to $75,000 by Singapore Deposit Insurance Corporation (SDIC)

Fixed deposit vs Singapore Savings Bonds (SSB) — which is better?

In an earlier article, we compared the Singapore Savings Bonds to fixed deposits. There are a few key distinctions between these virtually risk-free investment vehicles.

First, interest rates. Believe it or not, fixed deposit interest rates are actually higher than SSBs. The March 2021 issue of SSBs offers a measly 0.35% p.a. interest average return after the first 2 years… and you thought the fixed deposit interest rates were low.

Next, entry point. It takes just $500 to invest in Singapore Savings Bonds, which is lower than the $1,000 or more for most fixed deposits. That said, ICBC fixed deposits only require $500 to start. (On the flip side, there’s a cap of $200,000 you can put into Singapore Savings Bonds. There’s no cap for fixed deposits.)

Finally, tenure. Fixed deposits are shorter term investments. After the lock-in period is over, you should shop around again for another place to park your money.

With SSBs, however, the interest rate climbs every year, so the longer you keep the money in there (up to a maximum of 10 years) the more you get. At the same time, SSBs have higher liquidity than fixed deposits. You will not be penalised if you withdraw your money at any point. You do have to pay a $2 transaction fee each time you buy or redeem a bond, though.

Know anyone who likes to park their cash in fixed deposits? Share this article with them.

The post 7 Best Fixed Deposit Rates in Singapore (Jan 2022) — DBS, CIMB & More appeared first on the MoneySmart blog.

MoneySmart.sg helps you maximize your money. Like us on Facebook to keep up to date with our latest news and articles.

Compare and shop for the best deals on Loans, Insurance and Credit Cards on our site now!

The post 7 Best Fixed Deposit Rates in Singapore (Jan 2022) — DBS, CIMB & More appeared first on MoneySmart.sg.

Original article: 7 Best Fixed Deposit Rates in Singapore (Jan 2022) — DBS, CIMB & More.

© 2009-2018 Catapult Ventures Pte Ltd. All rights reserved.

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting