Fixed Deposits | Higher Interests | Fixed Deposits offers by Banks in Singapore
Fixed Deposits | Singaporeby Bienu 2 October 2020
Fixed Deposits: There is some more to it!
Your savings account is showing some substantial funds stashed in it which is earning low interest on it. You can keep this money in Fixed Deposits for a fixed tenure and fixed rate of interest. It will earn higher interest depending on your bank in Singapore. You can check the bank’s promotional offers, but don’t forget to run through the fine print.
So, you have put the money in fixed deposits for 12 months, and as time moves, there is some more money which got accumulated over a period of time.
Can you top up that on your earlier FD?
You may not top up your fixed deposit account. When you open a fixed deposit account, the sum of money you put into the account will stay in that account until the term of maturity. You can invest these additional funds in a separate fixed deposit as you cannot top it up. Please note that interest rates for the new fixed deposit account could differ based on the bank’s current policy/promotion.
You must know that the interest income received from deposits with approved banks or licensed finance companies in Singapore is not taxable.
What makes fixed deposit an attractive investment option:
You have a considerable cash amount which is earning lower interest in your savings account.
You are looking at a virtually risk-free investment option. Even if something happens to the bank, your deposits and interest earned are still protected (up to $75,000 thanks to the SDIC).
You want regular cash flow with interest payments, which are being paid out regularly at quarterly or annual intervals.
You need liquidity in your investments. A partial or full withdrawal of fixed deposits can be done at any time so your cash is always liquid.
Please be aware you might lose out on any interest to be paid if the money is withdrawn before the fixed deposit reaches full maturity.
So, have a long – term vision while investing in FD.