Best Fixed Deposit Offers | Low Risk Fixed Deposit in Singapore
Bank Accounts | Fixed Depositsby Priyadarshini 15 September 2021
Fixed deposit accounts are low-risk investments that pay interest over a set period of time. You don’t have to do anything to earn this interest; simply deposit your funds in a bank. And the bank will give out interest on the amount for a particular tenure. In this blog, we tell you about the best fixed deposit offers by various banks in Singapore.
You can consider fixed deposits ideal if you have a large sum of money lying around. And don’t want to risk investing it. Fixed deposits are a very low-risk way of growing your money. We have selected the highest fixed deposit rates for SGD in deposit amounts that are attainable (i.e. $50,000 and less). It is important to note that these promotional rates change on a monthly basis, and the bank reserves the right to change the rates at any time.
Best Fixed Deposit Offers:
Malaysian bank CIMB tops the fixed deposit chart thanks to a 0.8% p.a. promotion for CIMB Preferred customers. If you are not a CIMB Preferred customer, the rates are still quite competitive, at 0.8%, which is higher than the rates offered by all other banks. However, this promotion is only available for deposits of at least $10,000. Also, in order to take advantage of this rate, you must commit to it for a period of two years. The offer is available to both new and existing CIMB customers.
Hong Leong Finance
Apart from big banks like DBS, UOB, and OCBC, fixed deposit enthusiasts can also consider non-bank financial institutions. For example, Hong Leong Finance, which offers various promotions. However, they may not be as risk-free as compared to banks. Hong Leong is offering 0.65% for 36 months, 0.6% per annum for 24 months, or 0.45% for 12 months. But it does require a significant deposit of $20,000. Before you put that much money in a fixed deposit, make sure you have enough emergency funds.
DBS Bank Fixed Deposit Rate
By today’s standards, the current highest DBS fixed deposit rate of 1.3% p.a. is considered sky-high. It is, however, only available to those who have existing DBS fixed deposits that are due for renewal. If you open a new fixed deposit account, the maximum rate you can get is 0.6% per year for 8 months. The only consolation is that the lock-in period is relatively short, and the minimum payment of $1,000 is quite manageable.
With Maybank’s Singapore Dollar Time Deposit, you can earn 0.6% per year. Unfortunately, you must leave it in for 36 months (3 years!) in order to earn 0.6% p.a. If you don’t want to commit to that time, there are shorter-term fixed deposits available. For example, 0.5% for 24 months or 0.4% for 18 months.
Local bank UOB is currently offering only 0.5% p.a. on 10-month fixed deposits. The fact that the lock-in period is relatively short is a saving grace. Please keep in mind that if you have a UOB fixed deposit maturing this month, UOB will auto-renew your account at the current “promotional” rate. You should review and update your standing instructions.
With so many banks in Singapore competing for your dollar and offering various promotions, you can make the right choice that is suitable for you. With the best fixed deposit offers, you can reap the benefits of good returns with minimum risk as compared to other investments.
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