Attractive Savings Instrument | Fixed Deposits in Singapore
Fixed Deposits | Singaporeby Bienu 2 October 2020
Fixed Deposits: Attractive Savings Instrument
Fixed Deposits are fixed tenure deposits with a fixed interest rate till it reaches maturity. It is easiest and risk-free instrument preferred by people who don’t want to invest their money in market driven instruments. Here the interest rate is higher than a regular savings account and provide risk-free guaranteed returns. The tenure is flexible and can be withdrawal even before completion of tenure, may be for some penalty.
This was we see that these are a safe, secure, low-risk investment that can help you reap interest over a fixed tenure. All fixed deposit accounts let you to put your savings away for a set amount of time without touching it. The longer, the tenure, the higher the interest rate you get. Almost all banks in Singapore offer fixed deposits and provide higher interest over savings bank account.
You can apply for a fixed deposit with any of the banks in Singapore:
- DBS / POSB
- Hong Leong Finance
- Standard Chartered
In Singapore banks keep on offering promotional rates which can change monthly, so you are advised to look for best interest rates during this period. Here the interest rates range from 1% to 2%. But if you come across higher than usual interest rate like 2.5% or more, time is to know the reason – it usually applies to fixed deposit sums of $50,000 or more, and usually in the form of “fresh funds” (this means that you cannot transfer funds from a savings or current account within the same bank).
The withdrawal can be made of your fixed deposit but if reaches maturity, but you may need to incur an incur an early withdrawal fee and/or lose the interest income on your fixed deposit. Banks in Singapore do not charge any fees when the withdrawal is made within 30 days after the opening of the account, but other terms and conditions may apply depending on the bank policies.
Banks provide higher interest rates for the longer tenure (at least 12 months) and for higher fixed deposit amount, which are generally paid out at quarterly or annual intervals.
Fixed deposit accounts work the same as any other interest-bearing bank deposit account, except that they have a specified maturity date and the funds cannot be withdrawn during the term of maturity.
If you keep fixed as actually fixed, your money will earn money!
Relocation company in Singapore