Given the rising interest rate trend, it doesn’t seem like rates are dropping any time soon. If you’re looking for a place to grow your cash, could Sing Investments & Finance Ltd (SIF) be your safe harbour? Read on to find out.
Even if you’ve not been keeping up with the news, it’s hard to avoid the effects of rising interest rates — be it for home loans or savings accounts.
Is this a cause for concern? Or could the high interest rates actually benefit customers? What is the smartest thing to do with our extra cash?
We deep-dive into the key reasons why interest rates are spiking and whether it’s a good call to park your funds into low-risk investment vehicles like SIF’s fixed deposit and savings account to ride on the high interest.
Why are interest rates on the rise?
#1 Combat inflation
We’re first-hand witnesses to the recent sky-high inflation rates. Singapore’s core inflation rate has been on an upward trend for the past year, and reached 5.1 per cent year on year.
In order to combat inflation and keep up with the increasing prices of our daily necessities, it is no wonder that customers are always scrambling to find the next best thing to grow their wealth, be it in savings accounts, fixed deposits or endowment plans. Banks have been aggressively increasing their rates to attract customers.
#2 Higher profits for banks translate into higher returns for customers
But the interest rate hike doesn’t apply to just products that benefit customers. You’ve also probably seen how home loan rates are now on the rise.
Banks also have to turn up the heat on home loan rates to increase profits. And with higher profits, banks can translate them into higher returns for depositors.
And vice versa. When customers lock in their funds in products like fixed deposits for a few months or years, banks “borrow” that money to lend to others like loaners.
So to put it into perspective, interest rates have to be jacked up for banks to earn. Banks profit from the difference between the interest rate they charge borrowers and the interest rate they offer depositors.
Is it a good time to park your funds in low-risk investments?
In this current volatile stock market, are low-risk investments the right way to go?
Well, it does seem like the safest option for now. In this high-interest climate, low-risk investments prove to be of value to our money too, as we can take advantage of the high rates offered by banks to further stretch our dollar and combat inflation.
Not only can we maximise the value of our excess cash, but knowing that these investment products offer little to no risk makes us feel secure, knowing that our funds are not subjected to the volatility of the market.
For this reason, products like fixed deposits and bonds are getting increasingly popular these days, as banks are aggressively trying to compete in terms of offering the highest interest rate in the market.
This is where Sing Investments & Finance Ltd’s fixed deposit can bridge the gap and could be your best bet at hedging against inflation. Not only does it offer high interest, but it’s also extremely easy to open an account!
Psst, there is also an ongoing CNY promotion that gives you Cash Credit or an exclusive CNY Dual Purpose Leather Ang Pao Pouch/Tray!
Why should you accumulate wealth with Sing Investments & Finance Ltd (SIF) fixed deposit?
#1 High interest
When we think of fixed deposits, they are commonly associated with low interest rates that are not worth locking our money in for. But times have changed. Fixed deposits are proving to offer increasingly competitive rates, and with the short lock-in period, who can resist them?
Sing Investments & Finance Ltd fixed deposit is no exception. For one, they offer a whopping interest rate of 4.18% p.a.*, even higher than the interest offered to you by your CPF Ordinary Account! For just a short lock-in period of 12 months, the trade-off seems very worthwhile.
SIF Fixed Deposit (FD)
Fixed Deposit Amount
#2 Low risk, guaranteed returns
Of course, if you compare the interest rate returns with stocks, stocks will have a higher probability of better returns in the long run. But what fixed deposits have to offer is the high security that stocks cannot.
As an established company with a track record of over 50 years in the finance industry, rest assured that your money is in safe hands.
On top of that, you are also insured up to S$75,000 by Singapore Deposit Insurance Corporation (SDIC).
#3 Ideal for short-term goals
Unlike stocks which are more volatile, fixed deposits offer guaranteed returns, as long as you don’t touch your funds during the lock-in period.
And once you lock in your funds at the specific interest rate, the rates do not fluctuate according to market conditions. So even if the market goes bust during the period, the interest rate you can earn on your capital is still secured!
This means that if you only have a year or two to save up for a life goal like a wedding or a big-ticket purchase, you won’t have to worry about jeopardising your capital or taking on debt.
#4 Offers ultimate convenience
Opening a SIF fixed deposit is extremely convenient. There are two ways you can do it:
- Over the counter
- Online placements (SIF FD Online Account) via the SIF Mobile app
In case you didn’t know, SIF is the only finance company (as of 9 Jan 2023) that offers in-app fixed deposit online placement, allowing you to make online placements on the go — great for workaholics who don’t have time to head down to the bank physically. You can also change your maturity instruction in real-time, which gives your deposit greater flexibility.
How do you open a SIF fixed deposit online (FD Online) account?
To open a SIF FD Online Account, you need to first open the online savings account, i.e. SIF GoSavers Account, via the SIF Mobile app. Here are some steps to follow:
- Download the SIF Mobile app on the App Store or Google Play.
- Open a GoSavers Account via Myinfo with Singpass
- After verification and activation of your SIF GoSavers Account, you can perform a fixed deposit online placement
- Online fixed deposit placements (or SIF FD Online) must be via funds transfer from SIF GoSavers/Savings Account. You can instantly transfer funds into your GoSavers/Savings Account via FAST (Fast And Secure Transfer) online from any FAST-participating bank.
Alternatively, you can also head down to any SIF branch and do it over the counter.
[Promotion has ended]
As part of SIF’s Chinese New Year Fixed Deposit promotion, SIF is offering attractive cash credits and gifts up for grabs:
- Online fixed deposits: Get Cash Credit of S$10**, which will be credited to your SIF GoSavers/Savings Account
- Over-the-counter fixed deposit placements: Get an exclusive CNY Dual Purpose Leather Ang Pao Pouch/Tray^
In short, you’ll need to open a SIF GoSavers Account in order to open a SIF FD Online Account. Here’s how the GoSavers Account can help you reach your money goals and cope with inflation.
While the SIF GoSavers Account is an online savings account, it pays a high interest rate which is credited into your account at the end of the month!
You can download the app on the App Store or Google Play. You can open the GoSavers Account online with Myinfo.
#1 No hoops to jump through to earn high interest
We’re all too familiar with savings accounts that offer exceptionally high interest rates, but in return, require you to fulfil multiple criteria like salary crediting, a minimum credit card spend and purchasing insurance and investment products to attain them. And if you choose not to, the base interest rate offered can be minimal.
However, Sing Investments & Finance Ltd’s GoSavers Account does not require customers to jump through any hoops at all. The only variable is your account balance. The higher the account balance, the higher the interest rate you can earn, up to 3.50% p.a.* Yes, this savings account offers an interest rate like a fixed deposit!
Here’s a breakdown of the interest:
#2 Ideal as your primary savings account – increasing interest with higher balance
Unlike other savings accounts that “punish” you with a lower interest rate once you reach a certain amount in your account balance, the SIF GoSavers Account does the complete opposite.
For funds above S$250,000, you’ll be rewarded with the highest interest rate of 3.50% p.a.*
This means you won’t have to worry about switching to another account when your bank balance gets too high — you can still continue earning the highest interest rate tier with no cap on the balance!
This article is written in partnership with Sing Investments & Finance Ltd.
About Sing Investments & Finance Ltd.
Sing Investments & Finance Ltd (SIF) was incorporated in Singapore on 13 November 1964 and was listed on the Singapore Stock Exchange in July 1983. SIF is a finance company licensed by the Monetary Authority of Singapore (MAS). SIF has over 50 years of lending experience in the financing arena in Singapore and its suite of financial products includes accepting fixed and savings deposits from the public and providing loans and credit facilities to individuals and SMEs/corporations.
Terms & conditions apply
*Interest rate is subject to change without prior notice.
Insured up to S$75k by SDIC.
**Minimum deposit of S$20k. S$10 cash credit will be credited into your SIF GoSavers/Savings Account within 7 working days for every S$20k online fixed deposit placement.
^1 gift (worth $28) for every $80k fixed deposit placed over the counter. While stocks last.
The value of the gift/cash credit is to be refunded and no interest is payable if the fixed deposit is withdrawn before the maturity date.