The Best Fixed Deposit Accounts in Singapore (2018)
Fixed deposit or time deposit accounts are basically investments that earn you interest over a fixed tenure. 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 them. Fixed deposits are an extremely low risk way to grow your money.
Highest fixed deposit interest rates in Singapore 2018
Most banks have standard fixed deposit interest rates but as a rule of thumb, it is not worth it to open a fixed deposit unless there’s a good promotion going on. So I looked at promotional interest rates for SGD time deposits on the market.
Bank/financial institution | Min. deposit amount | Tenure | Promotional interest rate |
$10,000 | 12 months | 1.9% p.a. (online only, expires 30 Nov) | |
$20,000 | 12 months | 1.88% p.a. (with $2,000 deposit in current/savings account) | |
$30,000 | 12 months | 1.8% p.a. (expires 30 Nov) | |
$20,000 | 12 months | 1.75% p.a. (with $2,000 deposit in current account) | |
$20,000 | 24 months | 1.75% p.a. | |
$100,000 | 15 months | 1.75% p.a. | |
$10,000 | 6 months | 1.7% p.a. (online only, expires 30 Nov) | |
$30,000 | 6 months | 1.7% p.a. (expires 30 Nov) | |
$50,000 | 15 months | 1.7% p.a. | |
$100,000 | 12 months | 1.7% p.a. | |
$50,001 | 12 months | 1.65% p.a. (online iSAVvy only) | |
ICBC (Step-Up Fixed Deposit) | $5,000 | 12 months | Approx. 1.62% p.a. |
$20,000 | 12 months | 1.6% p.a. | |
$20,000 | 15 months | 1.6% p.a. | |
$25,000 | 12 months | 1.6% p.a. (expires 15 Nov) | |
$50,000 | 12 months | 1.6% p.a. | |
$20,000 | 10 months | 1.58% p.a. (expires 30 Nov) | |
$20,000 | 12 months | 1.55% p.a. | |
$100,000 | 6 months | 1.55% p.a. | |
$10,000 | 3 months | 1.5% p.a. (online only, expires 30 Nov) | |
$50,000 | 6 months | 1.5% p.a. | |
$25,000 | 7 months | 1.5% p.a. (expires 15 Nov) | |
$20,000 | 6 months | 1.4% p.a. |
Disclaimer 1: I’ve ignored the crazy-high deposit amounts that banks use to inflate their interest rates because I know how disappointing it is to click on an advert for “1.9% p.a. fixed deposit” only to realise it’s for $1m deposits and up.
Disclaimer 2: Also, some banks have higher interest rates for foreign currencies (RMB, USD usually) but most regular Singaporeans don’t have huge sums of those lying around, so I’ll focus on the SGD ones here.
Disclaimer 3: Many of these promotional rates change monthly. Although some do not have a specified expiry date, the bank can change the rates anytime.
It’s a tad overwhelming, so I’ll split this into tiers based on the deposit amount in the following sections.
Best fixed deposit interest rates for $10,000 deposit or less
Bank/financial institution | Min. deposit amount | Tenure | Promotional interest rate |
$10,000 | 12 months | 1.9% p.a. (online only, expires 30 Nov) | |
$10,000 | 6 months | 1.7% p.a. (online only, expires 30 Nov) | |
ICBC (Step-Up Fixed Deposit) | $5,000 | 12 months | Approx. 1.62% p.a. |
$10,000 | 3 months | 1.5% p.a. (online only, expires 30 Nov) |
Usually, you’ll need at least $20,000 lying around in order to benefit from decent promotional interest rates.
However, the current promotional rates for CIMB are very attractive even for relatively low deposits. The minimum deposit is $10,000 across the board, and the best rate is 1.9% p.a. if you lock it in for 1 year. You can’t beat this rate, even with a higher deposit amount.
If you only have $5,000 to deposit, you can consider ICBC’s Step-Up Fixed Deposit account which awards a different interest each month, working out to about 1.618% interest p.a. Alternatively, just stick to a good savings account.
Best fixed deposit interest rates for $20,000 to $30,000 deposit
Bank/financial institution | Min. deposit amount | Tenure | Promotional interest rate |
$10,000 | 12 months | 1.9% p.a. (online only, expires 30 Nov) | |
$20,000 | 12 months | 1.88% p.a. (with $2,000 deposit in current/savings account) | |
$30,000 | 12 months | 1.8% p.a. (expires 30 Nov) | |
$20,000 | 12 months | 1.75% p.a. (with $2,000 deposit in current account) | |
$20,000 | 24 months | 1.75% p.a. |
To be honest, CIMB has all the competition beat in November. Again. With a rate like 1.9% p.a. for such a low commitment ($10,000 deposit, 12-month tenure), it makes sense to park anything over $10,000 with them.
Another option to consider is Maybank’s Time Deposit bundle as the interest rate is pretty high at 1.88% p.a. However, this bundle concept is a little annoying because you also need to have at least $2,000 in a current/savings account with Maybank. (Each $1,000 in your current/savings account “entitles” you to a fixed deposit of $10,000 at this rate… confused yet? Wait till you read the T&Cs on Maybank’s website.)
HSBC is offering an attractive fixed deposit interest rate of 1.8%, but it’s exclusive to HSBC Advance customers. Don’t be too put off by the exclusivity though: HSBC Advance is one of the most attainable priority banking programmes in Singapore, requiring just a $3,500 recurring monthly salary credit.
Of course, banks are notoriously fickle about their interest rates, and this 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 dirty summary of what you need to know about fixed deposits.
Fixed deposit vs savings account – what’s the difference?
Once an attractive alternative to that pathetic 0.05% p.a. interest on savings accounts, fixed deposits – like so many ageing Channel 8 starlets – are fading from collective memory. Today, every bank in Singapore is competing for your dollar with high interest savings accounts, so it’s actually possible to earn 2% or 3% p.a. on your savings. What a time to be alive!
Here are the differences between fixed deposits and savings accounts at a glance:
Fixed deposit | Savings account | |
Tenure | As low as 1 month, 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 $50,000 by Singapore Deposit Insurance Corporation (SDIC) |
Fixed Deposit vs. Savings AccountsWhat was that term?Fixed deposit (FD/Time Deposit)It’s a type of bank account where you deposit a sum of money and leave it untouched for a time in exchange for interestFixed DepositSavings AccountTenureAround 1 to 12 monthsNo tenureInterestRateAmountto depositCurrencyCan youwithdraw?InterestpaymentsRisk levelInterest rates are better with longer tenureInterest rates are unaffected by tenuremin. $10,000$500 to $3,000Smaller initial deposit and minimum monthly balanceFixed amountSome banks offer higher interest rates for foreign currencyDifferent currencies have no effect on the interest rateYes, but you’ll lose the interestYes, and it has no impact on interestMonthlyQuarterly or annuallyVirtually risk-free, insured up to $50,000 by Singapore Deposit Insurance Corporation (SDIC)
Fixed deposit vs Singapore Savings Bonds – which is better?
In an earlier article, we compared the Singapore Savings Bonds to fixed deposits.
Back then, the expected interest rates for the Singapore Savings Bonds were far better than any of the current interest rates offered by banks. But this has changed quite rapidly as banks have upped their game recently and started offering WAY better fixed deposit interest rates.
However, compared to fixed deposits, Singapore Savings Bonds also have higher liquidity. You will not be penalised if you withdraw from the Singapore Savings Bonds.
Of course, unlike the Singapore Savings Bonds, you are able to open a fixed deposit account at any time. Also, there is a cap of $100,000 you can put into Singapore Savings Bonds. There is generally no cap for fixed deposits.
Fixed Deposits vs.Singapore Savings BondsWhat was that term?Singapore Savings Bonds (SSB)It’s a type of bond. When you buy a bond, you lend money to the issuer. The issuer in this case is the Singapore government.Fixed DepositSingapore SavingsBonds• Better interest rates•You can open an account at any time•No cap for how much you put into the account•You get penalized for withdrawing your money• High liquidity, there are no penalties for withdrawals•The process of opening and managing your account is more complicated•There is a $100,000 cap for the amount you can put into Singapore Savings Bonds
Would you consider parking your money in a fixed deposit account? Why or why not?
Related articles
What Every Singaporean Needs to Know About Fixed Deposit Accounts
Singapore Savings Bonds: Is It Better Than When It First Launched in 2015?
Your Savings Account Sucks, Here Are Some That Don’t – 2018 Edition
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