Best fixed deposit rates in Singapore (November 2022): DBS, UOB, OCBC and more
PHOTO: The Straits Times
PUBLISHED ONDecember 02, 2022 4:07 AMByMoneySmart
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 mould on a piece of bread. Just leave it out in the open and mould 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 extremely low risk ways to grow your money.
You'll be happy to learn that the fixed deposit rates are looking up again! Fixed deposit interest rates took a hit during Covid-19 but now the rates are back to pre-Covid days!
If you've been holding out for the interest rates to pick back up, now might be a good time to park your spare money with a bank.
1. Best fixed deposit rates in Singapore
| Bank/financial institution | Min. deposit amount | Tenure | Interest rates |
|---|---|---|---|
| Hong Leong Bank | $5,000 | 12 months | 4 per cent per annum |
| Hong Leong Finance | $20,000 | 13 months | 3.45 per cent per annum |
| Citigold Time Deposit | $50,000 | 12 months | 3.40 per cent per annum |
| CIMB | $10,000 | 18 months | 3.85 per cent per annum |
| RHB | $20,000 | 24 months | 4.10 per cent per annum |
| DBS | $1,000 | 18 months | 1.70 per cent per annum |
| ICBC | $500 | 12 months | 3.75 per cent per annum |
| Maybank | $20,000 | 15 months | 3.05 per cent per annum |
| UOB | $5,000 | 12 months | 3.40 per cent per annum |
| HSBC | $5,000 | 12 months | 0.15 per cent per annum |
| OCBC | $20,000 | 12 months | 3.40 per cent per annum |
| Standard Chartered | $25,000 | 12 months | 3.40 per cent per annum |
| Bank of China | $5,000 | 12 months | 2.90 per cent per annum |
| State Bank of India | $50,000 | 18 months | 2.25 per cent per annum |
Note that most of these promotional interest rates, which change monthly and the bank can change the rates anytime.
2. Hong Leong Bank fixed deposit rates
| Hong Leong Bank fixed deposit rate | |
|---|---|
| Interest rate | 4 per cent per annum |
| Deposit amount | $5,000 |
| Tenure | 12 months |
Apart from the big banks like DBS, UOB and OCBC, the fixed deposit aficionado should also look at other banks like Hong Leong Bank as they also offer attractive promotions.
Given its current fixed deposit interest rate of 4 per cent per annum for a lock-in period of 12 months (promotion ends Dec 31), it ranks amongst the highest in terms of interest rate across the board. It also has a relatively short lock-in period of a little over a year.
It also has a relatively low minimum deposit amount of $5,000, making it pretty worthwhile to put your money with Hong Leong Bank.
3. Bank of China fixed deposit rates
| Bank of China fixed deposit rate | |
|---|---|
| Interest rate | 2.90 per cent per annum |
| Deposit amount | Min. $5,000 |
| Tenure | 12 months |
Bank of China's fixed deposit promotional rate offers a 2.90 per cent per annum interest and it gets better.
The best part about Bank of China's fixed deposit rate is that you only need a minimum deposit of $5,000 to earn the 2.90 per cent interest rate. Typically, most banks require a minimum deposit of at least $10,000.
If you're looking to get the most out of a smaller sum of your savings, you can still leverage on Bank of China's 2.90 per cent per annum which is far better than your POSB eMySavings Account's 0.05 per cent per annum interest.
Plus, you only have to stash your money away for a year to earn the 2.90 per cent interest.
4. State Bank of India fixed deposit rates
| State Bank of India fixed deposit rate | |
|---|---|
| Interest rate | 2.25 per cent per annum |
| Deposit amount | Min. $50,000 |
| Tenure | 18 months |
The State Bank of India Singapore's interest rate is quite low at 2.25 per cent per annum for 18 months (minimum $50,000). If you're looking for a lower minimum deposit, you can opt for a shorter fixed deposit tenure.
The State Bank of India Singapore offers an interest rate of 1.75 per cent for a year. If you can afford to stash it away for a longer period of 36 months, you can earn up to 2.85 per cent per annum.
5. Hong Leong Finance fixed deposit rates
| Hong Leong Finance fixed deposit rate | |
|---|---|
| Interest rate | 3.45 per cent per annum |
| Deposit amount | Min. $20,000 |
| Tenure | 13 months |
Besides putting your money with banks, it's also worthwhile looking into other financial institutions which also offer competitive fixed deposit rates.
Hong Leong Finance is one such institution. Don't get it confused with Hong Leong Bank, though.
While the two share the same name, they offer entirely different fixed deposit rates.
Hong Leong Finance is currently offering a fixed deposit rate of 3.45 per cent per annum with a lock-in period of 13 months.
This interest rate might not be the best across the board but if you're looking to start your savings with a lower amount of $20,000 onwards, Hong Leong Finance is definitely one to consider.
6. CIMB fixed deposit rates
| CIMB fixed deposit rate | |
|---|---|
| Interest rate | 3.85 per cent per annum |
| Deposit amount | Min. $10,000 |
| Tenure | 18 months |
Malaysian bank CIMB offers a pretty decent fixed deposit rate for the month with their 3.85 per cent per annum promotion if you are just a regular banking customer (not a CIMB Preferred customer).
If you're a CIMB Preferred customer, you'll enjoy an even higher rate of 3.90 per cent.
This promo is for deposits of at least $10,000. To enjoy this rate, you need to lock up your money for 18 months. This promo extends to both new and existing CIMB Personal Banking and CIMB Preferred customers. To be eligible, you have to apply and deposit your money online.
If you're looking to deposit smaller amounts of your savings into a fixed deposit account, CIMB only offers 0.2 per cent to 0.3 per cent per annum.
In this instance, you would be better off placing your money with DBS at 1.7 per cent (from $1,000) or Bank of China where you can earn 2.90 per cent per annum (from $5,000).
7. DBS fixed deposit rates
| DBS fixed deposit rate | |
|---|---|
| Interest rate | 1.70 per cent per annum |
| Deposit amount | $1,000 to $19,999 |
| Tenure | 18 months |
The current highest DBS fixed deposit rate is 1.70 per cent per annum for those who have $1,000 to $19,999 for 18 months.
However, DBS has stopped accepting fixed deposits for 12 months and below. So, if you're already on an existing DBS fixed deposit programme, heng ah!
If you're opening a new fixed deposit account, the next tier you can apply for is 18 months and beyond.
The only consolations are that the lock-in period is relatively short, and the minimum of $1,000 is quite a manageable amount. Still beats having your cash parked in a regular savings account!
8. ICBC fixed deposit rates
| ICBC fixed deposit rate | |
|---|---|
| Interest rate | 3.75 per cent per annum |
| 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, the lower-commitment options have become a lot more competitive of late.
There are a few fixed deposits which have pretty low barriers to entry on this list, but Chinese bank ICBC takes the cake by requiring just a $500 minimum deposit.
ICBC's interest rates are also slightly above average when compared across the board. You get a 3.74 per cent per annum (if you apply for this fixed deposit online via ICBC e-banking) with a commitment period of 12 months.
When you do it the old school way, you'll get a lower 3.70 per cent per annum for 12 months and you'll have to hit a minimum deposit requirement of $20,000.
If you're looking to start somewhere, ICBC has a low barrier of entry, a good fixed deposit rate to offer and a low commitment period of only a year.
9. Maybank fixed deposit rates
| Maybank fixed deposit rate | |
|---|---|
| Interest rate | 3.05 per cent per annum |
| Deposit amount | Min. $20,000 |
| Tenure | 15 months |
You can earn 3.05 per cent per annum. with Maybank's Singapore Dollar Time Deposit. Maybank's fixed deposit rate this month pales in comparison across the board. Plus, you have to leave your money in for 15 months.
If you can commit to a longer two years, you can earn a higher interest rate of 3.20 per cent per annum with the same $20,000 minimum deposit amount as RHB.
However, if you're looking to commit for a shorter time period, Maybank also offers 3 per cent per annum for 12 months.
10. UOB fixed deposit rates
| UOB fixed deposit rate | |
|---|---|
| Interest rate | 3.40 per cent per annum |
| Deposit amount | Min. $5,000 |
| Tenure | 12 months |
Right now, local bank UOB is offering 3.40 per cent per annum on their 12-month fixed deposits. The lock-in period is relatively short at a year, and the minimum deposit of $5,000 is reasonably low as well.
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.
11. RHB fixed deposit rates
| RHB fixed deposit rate | |
|---|---|
| Interest rate | 4.10 per cent per annum |
| Deposit amount | Min. $20,000 |
| Tenure | 24 months |
Malaysian bank RHB is offering 4.10 per cent per annum fixed deposit interest rate, which is among the higher ones offered in the market at the moment.
However, with RHB, you have to stash your funds away for two whole years and it also has a slightly higher minimum deposit requirement of $20,000.
12. Standard Chartered fixed deposit rates
| Standard Chartered fixed deposit rate | |
|---|---|
| Interest rate | 3.40 per cent per annum |
| Deposit amount | Min. $25,000 |
| Tenure | 12 months |
Standard Chartered's fixed deposit rates is nothing to scream and shout about. At 3.40 per cent per annum interest rate for a lock-in period of a year, Standard Chartered's ongoing fixed deposit rate promotion is amongst the lowest.
If you have $25,000 to stash away for a year, you'll earn a better fixed deposit rate with most other banks.
13. HSBC fixed deposit rates
| HSBC fixed deposit rate | |
|---|---|
| Interest rate | 0.15 per cent per annum |
| Deposit amount | Min. $5,000 |
| Tenure | 12 months |
HSBC offers one of the lowest interest rate of 0.15 per cent per annum. for a tenure of 12 months. However, it requires an initial deposit of $5,000 which is quite low as compared to many others.
14. OCBC fixed deposit rates
| OCBC fixed deposit rate | |
|---|---|
| Interest rate | 3.40 per cent per annum |
| Deposit amount | Min. $20,000 |
| Tenure | 12 months |
OCBC offers a pretty standard fixed deposit interest rate of 3.40 per cent per annum for a tenure of 12 months.
With the other banks having increased their fixed deposit rate offerings, OCBC's current rates are trying to keep up with the competition. In the same tenure period of a year, you can earn a higher interest rate with Hong Leong Bank or ICBC.
15. Citibank fixed deposit rates
| Citibank fixed deposit rate | |
|---|---|
| Interest rate | 3.40 per cent per annum |
| Deposit amount | Min. $50,000 |
| Tenure | 12 months |
Citibank's fixed deposit rate is pretty average, just like OCBC's 3.40 per cent per annum for a tenure of 12 months. However, it does have a high minimum deposit amount of $50,000 as compared to most banks like Standard Chartered and OCBC.
If you're certain you won't be needing the extra cash on your hands for the next 12 months, Citibank is definitely a good place to put your cash and let it work for you.
Now that we've had a look at the interest rates banks have to offer, 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 per cent per annum 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 three 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 $5,000 | 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?
There are a few key distinctions between these virtually risk-free investment vehicles.
First, interest rates. Believe it or not, fixed deposit interest rates were actually higher than SSBs in 2021. The March 2021 issue of SSBs offered a measly 0.35 per cent p.a. interest average return after the first two years. However, things have completely changed in the past year.
In fact, the SSB interest rates are better than they have ever been.
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The August 2022 SSB has a ten-year average return of 3 per cent per annum, while even two-year rates are 2 per cent per annum average return.
The September 2022 SSB is slightly lower but still with an optimistic ten-year average return of 2.8 per cent per annum.
While fixed deposit interest rates might be more attractive than SBSs in the short term, SBSs outperform fixed deposit rates in the long run.
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.
This article was first published in MoneySmart.