Fixed Deposits vs. High-Yield Savings Accounts: Which Should I Choose?

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 help you earn interest, but they work quite differently when it comes to returns, accessibility, and flexibility.

Fixed deposits offer the security of guaranteed returns—great if you don’t need to touch your funds for a while. High-yield savings accounts, on the other hand, give you the freedom to access your money anytime, often with the potential to earn more interest if you meet certain conditions.

So which one should you go for? In this guide, we break down the difference between FD and savings account options, helping you decide based on how long you’re willing to set your money aside—and what you want to get out of it.

>> Skip to: Our comparison table of fixed deposits and high-yield savings account

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. As of 2025, banks such as Maybank and RHB are offering between 2.7% to 2.9% p.a. for 6- and 12-month terms, making FDs a strong option for those looking to earn stable, predictable returns. (Find out more about the best fixed deposit rates.)

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.

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 higher interest when you credit your salary and use DBS products like credit cards and investments.

• OCBC 360: Offers up to 4.65% p.a. if you meet multiple criteria, such as salary crediting, saving a minimum amount monthly, or purchasing insurance.

• UOB One: Provides attractive rates when you credit your salary and meet card spending requirements.

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.

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.

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.

• Difference between bank account types

• Best savings accounts in Singapore

• Best fixed deposit accounts in Singapore