Best fixed deposit rates in Singapore (August 2022): DBS, UOB, OCBC and more
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PUBLISHED ONAugust 02, 2022 3:53 AM
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 (August 2022)
We’ve picked the highest fixed deposit rates for SGD in attainable deposit amounts (i.e. $50,000 and below).
| Bank/financial institution | Min. deposit amount | Tenure | Interest rates |
| Hong Leong Finance | $10,000 | 30 months | 2.33 per cent p.a. |
| CIMB | $10,000 | 18 months | 2.25 per cent p.a. |
| RHB | $20,000 | 24 months | 2.25 per cent p.a. |
| DBS | $1,000 | 18 months | 1.3 per cent p.a. |
| ICBC | $500 | 12 months | 1.75 per cent p.a. |
| Maybank | $20,000 | 24 months | 2.05 per cent p.a. |
| UOB | $20,000 | 15 months | 2 per cent p.a. |
| HSBC | $30,000 | 12 months | 2 per cent p.a. |
| OCBC | $20,000 | 24 months | 2.2 per cent p.a. |
| Standard Chartered | $25,000 | 12 months | 2.2 per cent p.a. |
| Bank of China | $5,000 | 24 months | 2.3 per cent p.a. |
| State Bank of India | $25,000 | 18 months | 2.25 per cent p.a. |
Note that most of these promotional interest rates, which change monthly and the bank can change the rates anytime. The exception is DBS’ fixed deposit rate, which is non-promotional.
2. State Bank of India Singapore fixed deposit rates (August 2022)
| State Bank of India Singapore fixed deposit rate | |
| Interest rate | 2.25 per cent p.a. |
| Deposit amount | Min. $25,000 |
| Tenure | 18 months |
The State Bank of India Singapore’s interest rate is one of the highest amongst the banks here with its ongoing promotion of 2.25 per cent p.a. for 18 months (minimum $25,000).
If you’re looking for a lower minimum deposit of $5,000, you can opt for a shorter fixed deposit tenure. The State Bank of India Singapore offers an interest rate of 1.6% for a year. If you can afford to stash it away for a longer period of 36 months, you can earn up to 2.3% p.a..
Either way, it’s interest rates across the board are rather attractive and worth looking into regardless of the inconvenience of banking with a foreign bank.
3. Bank of China fixed deposit rates (August 2022)
| Bank of China fixed deposit rate | |
| Interest rate | 2.3 per cent p.a. |
| Deposit amount | Min. $5,000 |
| Tenure | 24 months |
Bank of China’s fixed deposit promotional rate ranks one of the highest across the board at 2.3 per cent p.a. 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 get earn the 2.3 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 2.3 per cent p.a. which is far better than the 0.05 per cent p.a. interest you would earn with a regular savings account.
4. Hong Leong Finance fixed deposit rates (August 2022)
| Hong Leong Finance fixed deposit rate | |
| Interest rate | 2.33 per cent p.a. |
| Deposit amount | Min. $10,000 |
| Tenure | 30 months |
Apart from the big banks like DBS, UOB and OCBC, the fixed deposit aficionado should also look at non-bank financial institutions like Hong Leong Finance as they also offer promotions. They may not be quite as risk-free as banks, though.
Given its current fixed deposit interest rate of 2.33% p.a. for a lock-in period of 30 months, its the highest across the board. However, it does require a rather lengthy lock-in period of 30 months. If you’re certain you won’t be needing extra cash on your hands for the next two and a half years, Hong Leong Finance is a good place to put your cash and let it work for you.
5. CIMB fixed deposit rates (August 2022)
| CIMB fixed deposit rate | |
| Interest rate | 2.25 per cent p.a. |
| Deposit amount | Min. $10,000 |
| Tenure | 18 months |
Malaysian bank CIMB offers pretty high fixed deposit rates for the month with their 2.25 per cent p.a. promotion (till Aug 31, 2022) if you are not a CIMB Preferred customer. If you’re a CIMB Preferred customer, you’ll enjoy an even higher rate of 2.3% p.a..
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.
If you’re looking to deposit smaller amounts of your savings into a fixed deposit account, CIMB only offers up to 0.3 per cent p.a.. In this instance, you would be better off placing your money with Bank of China where you can earn 2.3 per cent p.a..
6. DBS fixed deposit rates (August 2022)
| DBS fixed deposit rate | |
| Interest rate | 1.3 per cent p.a. |
| Deposit amount | $1,000 to $19,999 |
| Tenure | 18 months |
The current highest DBS fixed deposit rate is 1.3 per cent p.a. for those who have $1,000 – $19,999 for 18 months. However, DBS has stopped taking in fixed deposits above 8 months. So, if you’re already on an existing DBS fixed deposit programme, heng ah!
If you’re opening a new fixed deposit account, the highest you can go is 0.85 per cent p.a. for eight months. 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!
7. ICBC fixed deposit rates (August 2022)
| ICBC fixed deposit rate | |
| Interest rate | 1.75 per cent p.a. |
| 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.
With that said, ICBC’s interest rates when compared across the board are far from stellar. You get a 1.75 per cent p.a. (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 an even lower 1.70 per cent p.a. and you’ll have to hit a minimum deposit requirement of $5,000.
If you’re looking to start somewhere, ICBC has a low barrier of entry, a decent enough fixed deposit rate to offer and a low commitment period of only a year.
8. Maybank fixed deposit rates (August 2022)
| Maybank fixed deposit rate | |
| Interest rate | 2.05 per cent p.a. |
| Deposit amount | Min. $20,000 |
| Tenure | 24 months |
You can earn 2.05 per cent p.a. with Maybank’s Singapore Dollar Time Deposit. Unfortunately you have to leave it in for 24 months (two whole years!) to earn that amount. It is one of the highest across the board at the moment but if you don’t want to commit for the time it takes to build a BTO flat, there are shorter commitment fixed deposits.
For the same commitment period and minimum deposit amount of $20,000, you will get a higher interest rate with RHB or OCBC bank.
However, if you’re looking to commit for a shorter time period, Maybank also offers 1.8 per cent p.a. for 12 months or 1.9 per cent p.a. for 18 months.
9. UOB fixed deposit rates (August 2022)
| UOB fixed deposit rate | |
| Interest rate | 2 per cent p.a. |
| Deposit amount | Min. $20,000 |
| Tenure | 15 months |
Right now, local bank UOB is offering 2 per cent p.a. on their 15-month fixed deposits while promotion lasts till Aug 31, 2022. While the lock-in period is relatively short at a little over a year, it still does require a minimum deposit of $20,000.
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.
10. RHB fixed deposit rates (August 2022)
| RHB fixed deposit rate | |
| Interest rate | 2.25 per cent p.a. |
| Deposit amount | Min. $20,000 |
| Tenure | 24 months |
Malaysian bank RHB‘s interest rate is amongst the top of the table with an interest rate of 2.25 per cent per annum. If you have $20,000 to spare and lock away for two years, RHB is where you can go. If you are an RHB Premier customer, you get a higher 2.3 per cent p.a. interest rate instead.
Of course, not forgetting that RHB is also a foreign bank and you already know the risks involved with that. Whether the risk is worth taking, it’s your call.
11. Standard Chartered fixed deposit rates (August 2022)
| Standard Chartered fixed deposit rate | |
| Interest rate | 2.2% p.a. |
| Deposit amount | Min. $25,000 |
| Tenure | 12 months |
In the past, Standard Chartered’s fixed deposit rates have been nothing to scream and shout about. However, things have since changed. With its ongoing promotions for the month of August, Standard Chartered’s fixed deposit rates are definitely worthy of turning your attention to.
At 2.2 per cent p.a. interest rate for a lock-in period of a year, Standard Chartered’s promotional rate is rather attractive. If you have $@25,000 to stash away for a year, Standard Chartered is one to consider.
Plus, if your existing time deposit with Standard Chartered has recently matured, there’s also an ongoing renewal promotion. You can earn 2.0 per cent p.a. in interest if you renew your time deposit for another year.
The promotions end Aug 31, 2022. So, run, don’t walk!
HSBC offers a pretty decent 2 per cent p.a. for a tenure of 12 months but currently, its not the best deal you can get across the board. Also, do note that HSBC requires a very high initial deposit of $30,000. For a lower initial deposit of $25,000 and the same tenure period of 12 months, Standard Chartered bank offers you a higher a interest rate of 2.25 per cent p.a..
If you’re looking for a time deposit to park your cash, you’d definitely find a better deal elsewhere especially this month.
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.
12. Fixed deposit vs savings account — what’s the difference?
| HSBC fixed deposit rate | |
| Interest rate | 2 per cent p.a. |
| Deposit amount | Min. $30,000 |
| Tenure | 12 months |
Once an attractive alternative to the 0.05 per cent p.a. 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 3 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 $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 $75,000 by Singapore Deposit Insurance Corporation (SDIC) | |
13. Fixed deposit vs Singapore Savings Bonds (SSB) — which is better?
In an earlier article, we compared the Singapore Savings Bonds to fixed deposits. 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 Singapore Savings Bonds interest rates are better than they have ever been. The August 2022 Singapore Savings Bond (SSB) has a ten-year average return of 3 per cent p.a, while even two-year rates are 2 per cent p.a average return. 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.