Best Fixed Deposits To Lock In Your Savings In Singapore (2021)

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Best Fixed Deposits in Singapore: Complete 2019 Guide | SingSaver

We give you the lowdown on how fixed deposits work, and round up the best fixed deposit offers in the market right now.

Imagine if you could stash away all the money you received as gifts throughout the year, forget about it for a while, and find it again with some extra cash on the side. Fixed deposits are somewhat like that, acting as a safe, secure, low-risk investment that can help you generate interest over a fixed commitment period.

All fixed deposits require you to put a predetermined sum of money away for a set amount of time without withdrawing it. The longer your money is in the bank, the higher the interest rate you receive. It’s an easy and surefire way to grow your money.

Additionally, fixed deposit accounts work the same as any other interest-bearing bank deposit account. This makes them a lot easier to understand compared to other investment options. However, they have a specified maturity date and the funds cannot be withdrawn during the term of maturity.

Generally, the longer the tenure (at least 12 months) and the higher the fixed deposit amount, the higher the interest rate you will earn. Interest payments are generally paid out at quarterly or annual intervals.

Here are the best fixed deposits for these amounts:

Check out FAQs regarding fixed deposits.

Best fixed deposit promotions in Singapore for ≤S$10,000

BankTenorPromotional Interest Rate (p.a.)Min. DepositPromo Expiry
CIMB3 months to 24 months0.3%$5,000 (for 1-2 months deposits)
DBS/POSB8 months
7 months
6 months
0.6%
0.4%
0.2%
$1,000Note: DBS/POSB is only accepting new placements for tenors 8 months and below
Hong Leong Finance18 months
12 months
10 months
6 months
0.3%
0.25%
0.15%
0.15%
$10,000 (for 1-2 months deposits), $500 for longer tenuresAdd on senior citizen rate of 0.125% p.a. if you are aged 55 or above; AND placement is for 12 months or more
ICBC (via e-Banking)12 months
9 months
6 months
3 months or 1 month
0.6%
0.5%
0.3%
0.25%
$500 (fresh funds)
Maybank36 months
24 months
18 months
12 or 9 months
6 months
3 months
1%
0.60%
0.5%
0.45%
0.35%
0.30%
$1,000 (Min. deposit for 1 month is $10,000)

Winner: ICBC / DBS

With the current economic slowdown, ICBC and DBS are leading the pack when it comes to accessible fixed deposits. ICBC offers 0.6% p.a. for 12-month tenures with an initial deposit of just $500 in fresh funds, while DBS offers 0.6% p.a. for 8-month or shorter tenures for new placements of $1,000 and above.

Alternatively, if you have plans to hold your fixed deposit for three years, Maybank is offering 1% p.a. for 36-month tenures.

Best fixed deposit promotions in Singapore for >S$10,000

BankTenorPromotional Interest Rate (p.a.)Min. DepositPromo Expiry
CIMB3 months to 24 months0.3%$5,000 (for 1-2 months deposits)
DBS/POSB8 months
7 months
6 months
0.6%
0.4%
0.2%
$1,000Note: DBS/POSB is only accepting new placements for tenors 8 months and below
Hong Leong Finance18 months
12 months
10 months
6 months
0.3%
0.25%
0.15%
0.15%
$10,000 (for 1-2 months deposits), $500 for longer tenuresAdd on senior citizen rate of 0.125% p.a. if you are aged 55 or above; AND placement is for 12 months or more
ICBC (via e-Banking)12 months
9 months
6 months
3 months or 1 month
0.6%
0.5%
0.3%
0.25%
$500 (fresh funds)
Maybank36 months
24 months
18 months
12 or 9 months
6 months
3 months
1%
0.60%
0.5%
0.45%
0.35%
0.30%
$1,000 (Min. deposit for 1 month is $10,000)
OCBC12 months0.4%$20,000 (fresh funds)
Standard Chartered6 months0.2%
0.3% (Priority banking preferential rate)
$25,000 (fresh funds)31 January 2021
UOB10 months0.5%$20,000 (fresh funds)30 January 2021

Winner: ICBC / DBS

Again, ICBC or DBS make good fixed deposit options even for larger sums of money, earning you 0.6% p.a.

You can also opt for Maybank’s fixed deposit that gives 1% p.a. for 36-month tenures.

Best foreign currency (USD) fixed deposit rates in Singapore

BankTenorPromotional Interest Rate (p.a.)CurrencyMin. DepositPromo Expiry
UOB6 months0.40%USD$20,000 (fresh funds)30 January 2021
ICBC12 months (via e-Banking)
12 months


6 months
0.5% (for fresh funds)

0.45% (for fresh funds)
0.30% (for non-fresh funds)
0.35% (for fresh funds)
0.25% (for non-fresh funds)
USD$500
OCBC6 months
3 months
0.18%
0.10%
USD$5,000

Winner: ICBC

Have a spare USD$500 lying around? Why not park it in an ICBC fixed deposit account for 12 months and let it earn 0.5% p.a.? Rates for non-fresh-funds draw an interest rate of 0.35% p.a. for the same period of time.

Frequently Asked Questions

What are the requirements to open a fixed deposit account?

If you are an existing account holder, you will have to log in to the bank’s internet banking platform to open a fixed deposit. If you do not have an existing account with the bank, you might be required to open an account. This would require the following:

  • Front and back of your NRIC (for Singaporeans / PRs)
  • Passport and Employment Pass (for foreigners)
  • Proof of residential address

How do I apply for a fixed deposit account?

You can apply for a fixed deposit with any bank in Singapore. These are the banks that offer fixed deposits:

Upon application, you will have to transfer your funds into the fixed deposit account to start earning interest on your money.

Can I top up a fixed deposit account?

Unlike a savings account, you may not top up your fixed deposit account. When you open a fixed deposit account, the sum of money you put into the account stays there until the term of maturity.

If you want to put more money into a fixed deposits, what you can do instead is to open another fixed deposit account. Keep in mind that the interest rates for the new fixed deposit account could differ based on the bank’s current promotion.

Can I withdraw my fixed deposit before the tenure is up? 

You can withdraw your fixed deposit before the tenure is up but you may incur an early withdrawal fee and/or lose the interest income that you have earned.

Banks in Singapore do not charge any fees when the withdrawal is made within 30 days after opening the account, but other terms and conditions may apply depending on the bank policies.

Are fixed deposits taxable in Singapore?

No, the interest received from deposits with approved banks or licensed finance companies in Singapore is not taxable.

Can foreigners open fixed deposits in Singapore?

Yes. If you are a foreigner, you will need your passport, proof of address, and an Employment Pass/Dependent Pass/S Pass/Student Pass or Long-Term Visit Pass, whichever is applicable.

Can I open a fixed deposit using foreign currency other than USD?

Yes. Many banks offer fixed deposits for common foreign currencies like the Australian dollar, Euro, and British pound sterling.

Check the fine print for issues relating to conversion fees or auto-renewal clauses. Remember to shop around for the best promotional rate before committing as well.

Why should I open a fixed deposit account?

Fixed deposit interest rates are generally low unless a bank decides to offer a promotional rate. Here are some situations when opening a fixed deposit account could be an attractive option for you. 

  • You’re sitting on a considerable amount of cash which is earning next to nothing (0.05% p.a.) in an ordinary savings account.
  • You want a virtually risk-free investment option. Even if something happens to the bank, your deposits and interest earned are still protected (up to $75,000 thanks to the SDIC). 
  • You want regular cash flow. Interest payments are paid out regularly at quarterly or annual intervals. 
  • You need liquidity in your investments. A partial or full withdrawal of fixed deposits can be done at any time so your cash is always liquid. However, you might lose out on any interest to be paid if the money is withdrawn before the fixed deposit reaches full maturity. 

When’s the best time to open a fixed deposit? 

Unless you’re sitting on a mountain of cash, wait for a promotion from the bank before committing. Remember, once your money is in, your money is ‘stuck’ until the fixed deposit matures (unless you don’t mind receiving partial or zero interest upon withdrawal).

As with all financial decisions, consider the opportunity costs. In the case of fixed deposits, consider that the money could have been invested in higher yield products, or spent on some other form of appreciating asset.

Banks are frequently offering promotional rates which can change monthly, so cross shop for best promotion. In general, promotional interest rates range from 0.6% – 1%.

If banks advertise a higher than usual interest rate like 1.5% or more, read the fine print. This usually applies to fixed deposit sums of $50,000 or more and usually in the form of “fresh funds” (meaning that you cannot transfer funds from a savings or current account within the same bank).

The interest rates offered also depends on the current interest rate environment. In today’s low interest rate environment, you can expect fixed deposits to have lower interest rates, similar to how savings accounts have also been lowering the interest you can earn in the account.

Fixed deposit vs Singapore Savings Bond (SSB): Which is better?

Other than fixed deposits, another popular low-risk investment product in Singapore is Singapore Savings Bonds (SSB). The current low interest rates have made both savings types less attractive, with insurance savings plans growing in popularity by offering higher rate of returns.

Fixed Deposit Singapore Savings Bond (SSB)
Interest rate (Updated January 2021) 0.1% – 1% p.a
This interest rate stays the same throughout the entire tenure.
0.32% – 1.63% p.a. (Average return of of 0.89% p.a. over 10 years)
This interest rate tends to increase the longer you hold your SSB.
Minimum amount $500 (Varies based on the provider and minimum amount is higher for 1-2 month tenures) $500
Maximum amount No limit $200,000
Tenure 1 month to 3 years 1 to 10 years

There are lots of similarities between the two. They both involve pledging a fixed amount of cash for a fixed amount of time to earn a reliable coupon rate. Both are also considered very low-risk investment products.

However, the maximum value you can invest in SSB is $200,000, whereas for fixed deposits, you can invest as much as you want. In fact, if you’re planning to place a huge amount in fixed deposits with the bank, you’ll most likely be able to negotiate for a higher-than-advertised coupon rate.

Fixed deposits also usually allow you to withdraw funds immediately (although you may incur certain penalties). SSB withdrawals can take up to 30 days but are penalty-free.

SSB also tends to have a higher interest rates when you hold your bonds for a longer period of time. However, the first few years generate low interest rates. To get a better idea of the interest rates you will receive for your SSB, you should refer to the average rate per annum.

Besides fixed deposits and SSBs, you can also consider high yield savings accounts to keep your cash liquid. These savings accounts can earn an interest rate of approximately 2% p.a. However, many of these accounts require you to jump through hoops to earn the higher interest rates.

You can also read this article on fixed deposit vs Singapore Savings Bond (SSB) vs savings accounts.

What are the pros and cons of fixed deposits?

ProsCons
Gives guaranteed returns as long as you keep your funds in the accountRelatively low interest rate when compared to other savings options such as a high yield savings account or investment vehicles
Does not require you to jump through hoops to earn the interestMoney has to stay in the account for the entire tenure. If you withdraw the money, you risk losing out on any interest earned and might even have to pay a penalty
Currently offers higher interest rates than other low-risk options such as Singapore Savings BondYou cannot make top ups to a fixed deposit account, you can only open a new fixed deposit account for your new funds

How does the bank calculate the interest return on a fixed deposit?

The interest rate offered by the bank depends on two factors:
1) The amount of money you are putting into the fixed deposit
2) The tenure of your fixed deposit

If you choose to withdraw your funds before the full tenure is up, the interest you receive could be less than the interest rate offered, or none at all. Rest assured that you will still receive your full principal amount.

The calculation of interest returns differs from bank to bank. For example, DBS calculates this based on the completed quarters of a calendar year. Do check the interest returns before you withdraw your funds.

Read these next:
Insurance Savings Plans: Singlife Account vs Etiqa Elastiq vs SingTel Dash EasyEarn
Fixed Deposit vs Singapore Savings Bond (SSB) vs Savings Account: Where To Put Your Money?
Endowment vs Insurance Savings vs Bank Savings: What’s The Difference?
Best Alternatives to Savings Accounts in Singapore (2021)
Regular Savings Plan (RSP): What They Are And The Best Ones To Invest In