Fixed Deposit Rates Outlook for 2025

In Singapore, FD rates are influenced by a combination of factors, including Monetary Authority of Singapore (MAS) policies and global economic trends. Let's explore the outlook for FD rates.

>> Read more: Best fixed deposit rates for 2025

To understand FD rate trends in Singapore, it's helpful to consider global trends, particularly in the U.S., where the Federal Reserve's decisions influence global liquidity. 

In Singapore, interest rate movements are reflected in local benchmarks like the Singapore Interbank Offered Rate (SIBOR) and the Singapore Overnight Rate Average (SORA). MAS policies also play a significant role in influencing banks' fixed deposit offerings. 

Given the current global economic climate and MAS's monetary policy stance, FD interest rates in Singapore are generally expected to remain stable, with potential for slight adjustments depending on prevailing market conditions.

>> Jump to historical fixed deposit rates in Singapore

MAS monetary policy plays a pivotal role in shaping these trends, influencing banks' decisions on FD interest rates. The recent statement suggests that while significant fluctuations in FD rates are unlikely, subtle adjustments may occur in response to evolving economic conditions.

>> Read more: How does the Fed interest rate cut affect borrowers in Singapore

FD rates in Singapore tend to mirror global economic trends, such as inflation and downturns, with fluctuations influenced by MAS policies to balance economic growth and price stability. In turn, FD offerings vary among major banks like DBS, OCBC, UOB, Maybank, Standard Chartered, and HSBC. 

Promotional FD rates are another factor, providing higher yields for limited periods and attracting savers with competitive offers. Meanwhile, standard FD rates, while generally lower, offer more consistent returns.

FD rates in 2025 are currently in the range of 2.3% to 2.85%*, and are expected to maintain relative stability with potential for minor adjustments. 

Compared to savings accounts, FDs may offer more predictable returns, though other low-risk options like Singapore Savings Bonds (SSBs) and Treasury Bills (T-bills) also present alternative yields. 

In a climate of moderate inflation, FD rate adjustments may be subtle. Keeping an eye on the FD rate forecast can help you to optimise your savings strategy.

*Figures updated on 18 March 2025

When considering investment options, it's worth noting how FD rates compare to other high-yield fixed-income instruments available to Singaporeans. For instance, Singapore Savings Bonds (SSBs) and Treasury Bills (T-bills) might offer competitive rates, depending on prevailing market conditions and auction outcomes. 

It's crucial to evaluate these alternatives to make an informed decision and maximise your returns.

Fixed deposit interest rate figures from March 2025
Average yield for T-Bills from January 2025 up til March 2025
Average return for SSBs from bond issuance in March 2025

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With potential shifts in the FD rate forecast, locking in competitive FD rates now could be a smart move. Here’s how:

Compare rates. Check current FD rates across major banks like DBS, OCBC, UOB, and Maybank to find the best accounts to park your money.

Consider promotional rates. Look out for limited-time promotional FD rates, which often offer higher yields.

Choose the right term. Select an FD term that aligns with your financial goals and liquidity needs to find the best way to invest your money.

Stay informed. Keep track of MAS policy updates and economic indicators that may influence FD interest rates.

Currently, banks like Bank of China and CitiBank are offering competitive FD rates in Singapore. Remember to check the bank’s website or contact their customer service for the most up-to-date information.

Explore your options to decide if FDs are the best option for you.

• When are fixed deposits better than Singapore savings bonds?

• Best alternatives to fixed deposit accounts in Singapore

• Fixed deposits vs. endowment plans vs. cash management accounts: Which should you choose?

• 4 ways to use fixed deposits (you never knew about)

In Singapore, FDs offer a secure way to grow your savings. You deposit a lump sum for a fixed period at a predetermined interest rate. At maturity, you receive your initial deposit plus the accrued interest, providing a predictable return. Learn more about your options below.

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