Fixed Deposits vs. High-Yield Savings Accounts: Which Should I Choose?
Updated: 3 Oct 2025
Written bySingSaver Team
Team
Disclaimer: The information on this page is for general educational and informational purposes only and should not be considered financial or investment advice.
Fixed deposit vs savings account: the short answer
If you're wondering where to park your cash for safe, steady growth, fixed deposits (FDs) and high-yield savings accounts (HYSAs) are two solid contenders in Singapore. Both earn you interest, but they differ in returns, accessibility and flexibility.
Fixed deposits give you guaranteed returns, which is great if you won't need your funds for a while. High-yield savings accounts let you access your money anytime, often with the chance to earn more interest if you meet certain conditions.
In this guide, we break down the difference between a fixed deposit and a savings account, whether to open a savings account or fixed deposit, and how to move your FD funds back into savings when you need them.
Decision Guide
Before You Compare
Decide how long you can lock your money
Match the FD tenure to when you'll need the cash to avoid early-withdrawal penalties.
Check the minimum deposit
FDs often need S$500 to S$20,000 upfront. Many savings accounts need less.
Read the bonus interest criteria
HYSA headline rates usually require salary credit, card spend or investing.
Compare the effective rate, not the headline
Bonus rates often apply to a capped balance only. Work out your actual return.
Set your FD maturity instruction
Choose auto-renewal or credit to your savings account before the FD matures.
Difference between fixed deposit and savings account
| Fixed deposit | High-yield savings account | |
|---|---|---|
| Interest rate | Fixed and guaranteed for the full term | Variable; bonus tiers depend on monthly criteria |
| Access to funds | Locked in for the tenure | Withdraw or top up anytime |
| Early withdrawal | Interest may be forfeited or reduced | No penalty |
| Minimum deposit | Typically S$500 to S$20,000 | Often low or none |
| Conditions to earn | None beyond the deposit | Salary credit, card spend, investing or insurance |
| Best for | Spare cash for a fixed goal | Emergency funds and flexible goals |
| Main drawback | Low liquidity | Rates can be revised anytime |
Fixed deposits
What is a fixed deposit? A fixed deposit (FD) is a savings product where you place a lump sum of money with a bank for a set period—typically 3, 6, 12 or 24 months—in return for a guaranteed interest rate. During this period, your funds remain locked in, and early withdrawals often come with penalties or loss of interest.
In Singapore, FDs are offered by banks like DBS, OCBC, UOB, CIMB, Maybank and RHB, each with its own tenures and promotional interest rates. Promotional rates change often and usually depend on the deposit amount and tenure. Check the latest best fixed deposit rates before you commit.
When is a fixed deposit a good choice? FDs work well if you’ve got spare cash that you don’t need to access in the near term. They’re ideal for short- to medium-term goals, like saving for a wedding, renovation, or even a future holiday. The biggest trade-off is liquidity—your money stays untouched for the entire tenure, so be sure you won’t need to dip into it anytime soon.
>> Curious about what’s next for FD rates? Check out our fixed deposit forecast
To maximise your returns, consider shopping around during bank promotions, which often offer better rates for specific deposit amounts or durations.
Product Name | Hot Reward Pick | SingSaver Reward | ||
|---|---|---|---|---|
 | OCBC 360 Account | - | - | |
 | POSB Multiplier Account | - | - | |
 | DBS Multiplier Account | - | - | |
 | Maybank Save Up Programme | - | - | |
 | MoneyOwl | - | - | |
 | ICBC Fixed Deposit | - | - | |
 | Maybank Fixed Deposit | - | - | |
 | OCBC Fixed Deposit | - | - | |
 | RHB Fixed Deposit | - | - | |
 | Tiger Brokers | S$1,199 | ||
 | Webull Singapore | S$2,402 | ||
 | UOB Kay Hian | - | - | |
 | moomoo SG | S$130 Cash via PayNow | S$1,244 | |
 | POEMS | - | S$200 | |
 | CMC Invest | S$880 | ||
 | Longbridge | S$508 |
High-yield savings accounts
What is a high-yield savings account? A high-yield savings account is a type of bank account that offers better interest rates than standard savings accounts—without locking in your funds. These accounts are designed to help your money grow steadily while still keeping it within reach when you need it. HYSAs are commonly offered by major banks in Singapore, often with tiered interest structures based on your banking activity.
When is a HYSA a good choice? HYSAs are a great option if you want your savings to earn more interest without sacrificing accessibility. They’re particularly useful for building an emergency fund, managing short-term financial goals, or simply parking your cash while still keeping it flexible. There’s no fixed term, and you can typically make withdrawals and deposits whenever you like—penalty-free.
Some of the top HYSAs in Singapore include:
- DBS Multiplier: Earn up to 4.10% p.a. when you credit your income and transact in eligible categories, such as DBS credit cards, home loans, insurance or investments. The more categories you transact in, the higher your rate.
- OCBC 360: Earn up to 4.45% p.a. on your first S$100,000 if you meet the Salary, Save, Spend, Insure and Invest criteria. Without buying insurance or investments, the maximum is 1.95% p.a.
- UOB One: Earn up to 1.90% p.a. effective interest on balances up to S$150,000 when you spend at least S$500 a month on an eligible UOB card and credit a salary of at least S$1,600.
How do HYSA rates compare to fixed deposits? While FDs offer fixed, guaranteed returns over a set term, HYSA rates are variable and may fluctuate depending on your banking activity and the bank’s promotional structure. That said, some HYSAs offer rates on par with or even higher than short-term fixed deposits—making them worth a look if you want both returns and flexibility.
Things to keep in mind: HYSAs may require you to jump through some hoops to unlock the highest interest tiers. This can include crediting your salary, spending on linked credit cards, or purchasing investment or insurance products. And since the rates are not guaranteed, they may be revised at any time.
Still, if you prefer liquidity and are willing to meet a few conditions, HYSAs are a strong contender for your savings—offering a balance of accessibility and solid returns.
>> Read more about the best high-yield savings account in Singapore.
How to open a high-yield savings account or fixed deposit
You can open a high-yield savings account or fixed deposit in Singapore much like you would any other bank product—either online or by visiting a bank branch. Most banks support digital applications via MyInfo, which lets you sign up using your Singpass with minimal paperwork. You'll generally need to provide your NRIC or FIN and sometimes proof of address or income if you're applying for accounts with bonus interest tiers.
Fixed deposits can be opened through internet banking platforms, mobile apps, or in person at banks such as CIMB, Maybank, RHB, or UOB. Term and interest rates vary by provider, so it's a good idea to compare your options before deciding.
>> Having trouble opening a bank account? Check out our guide.
The minimum deposit amount is typically higher for fixed deposits—ranging from S$500 to S$20,000—while savings accounts may require as little as S$500 or none at all, depending on the provider.
Both Singapore-dollar fixed deposits and savings accounts at SDIC member banks are covered by deposit insurance, up to S$100,000 per depositor per member bank. That makes either option a low-risk place to park your cash.
Once you've picked the right account for your needs and completed the sign-up, the best part begins: watching your savings grow automatically and effortlessly.
How to transfer a fixed deposit to a savings account
There are two ways to move money from a fixed deposit into your savings account.
At maturity (recommended). Set a maturity instruction so the bank credits your principal and interest to your savings or current account when the FD ends. Otherwise, many FDs renew automatically.
- Log in to your bank's internet banking or mobile app.
- Go to your fixed deposit and find the maturity or renewal instructions.
- Choose to credit the principal and interest to your linked savings account.
- Save the instruction before the maturity date. Banks may need it a few working days in advance.
Before maturity (early withdrawal). Most banks let you withdraw an FD early through the app, internet banking or a branch. You'll usually lose some or all of the interest earned, and some banks charge a fee. Check your bank's terms before you withdraw.
Tip: Moving matured FD funds into a high-yield savings account keeps your cash earning interest while you decide on your next fixed deposit.
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About the author
SingSaver Team
At SingSaver, we make personal finance accessible with easy to understand personal finance reads, tools and money hacks that simplify all of life’s financial decisions for you.
The information on this page is for educational and informational purposes only and should not be considered financial or investment advice. While we review and compare financial products to help you find the best options, we do not provide personalised recommendations or investment advisory services. Always do your own research or consult a licensed financial professional before making any financial decisions.