When it comes to financial investment, fixed deposits emerge as the preferred choice for the majority of individuals who are beginners dipping their toes in. Touted as a popular investment, they are known for being virtually risk-free with guaranteed returns, in contrast to other high-risk investments such as stocks. Additionally, unlike Singapore Savings Bonds (SSBs), fixed deposits do not impose any allocation limitations, which may be less than what you desire to invest. If you’re looking to invest but feel inexperienced, consider taking a look at our guide on the best fixed deposit rates in Singapore, as well as other fundamental aspects you need to know.
What Exactly are Fixed Deposits and How Do They Work?
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Fixed deposits, also commonly known as time deposits, are financial instruments provided by banks and financial firms, in which depositors fund deposits with a predetermined rate for a fixed time frame. They are regarded as one of the preferred investment options for low-risk savings, offering stability and safety as they are not influenced by market volatility, unlike equities or mutual funds.
In essence, the money deposited into a fixed deposit account remains secured for a definite period, ranging from a few weeks to several years. During this time, the funds will generate an interest rate somewhat higher than that of a regular savings account. The interest rate is fixed and remains unchanged throughout the duration of the deposit. Once the tenure ends, the depositor will receive the principal amount deposited along with the accumulated interest.
In Singapore specifically, fixed deposits with higher rates may be subject to certain requirements, including minimum and maximum deposit limits, as well as additional agreements with the bank, such as credit card spending or insurance policies.
What are the Pros and Cons of Fixed Deposits?
If you’re a newbie in investment, there are several aspects you should consider about fixed deposits before committing to them. The benefits associated with fixed deposits include:
- Flexibility to select the preferred time frame
- No limitation on the maximum amount of money deposited
- Secured return on investment
- Streamlined ways to earn interest
However, the key points to consider are as follows:
- Low interest rates
- A minimum deposit requirement
- Inability to make additional deposits or top-ups to the account
- Low liquidity, which refers to penalties when withdrawing the fixed deposit funds before maturity. Depending on the stipulated conditions, you may receive less or no interest at all.
The Things to Consider Before Placing A Fixed Deposit
Once you have taken a look at the list of banks and made your choice, it is important to consider the preferred tenure, charges, and other key features that each one offers. In addition to this, you will also need to select the renewal action once the fixed deposit matures, whether automatic renewal or withdrawing either your interest or both principal and interest.
The List of the Best Fixed Deposit Rates in Singapore 2024
For the ultimate quick guide on the best fixed deposit rates in Singapore, we have compiled a list of banks that offer deposit rates, along with everything you need to know from their tenure and interest rates to requirements and more — for easy understanding.
1. DBS Bank Fixed Deposit Rates
| Tenure | Interest Rate | Minimum Deposit Amount | Key Features | Requirements |
| 1 month to 60 months | Up to 5% | $1,000 | 1. Options with nine foreign currencies 2. Fixed deposits can be placed on digibank app 3. The Premier Income Account (PIA) is a Singapore Dollar Fixed Deposit account for those 55 and above, with a minimum deposit of SGD10,000. | 1. At least 18 years old |
Click here to view the current fixed deposits rate of DBS bank
2. HSBC Time Deposit Account
| Tenure | Interest Rate | Minimum Deposit Amount | Key Features | Requirements |
| 3 month to 12 month | 2.85% (promotional SGD Time Deposits until 31st May 2024) | $5,000 | 1. Competitive interest rates 2. Flexible deposit tenure 3. Automatic renewal | 1. Singaporeans, PR and Foreigners |
Click here to view the current fixed deposits rate of HSBC
3. UOB Singapore Dollar Time/Fixed Deposit
| Tenure | Interest Rate | Minimum Deposit Amount | Key Features | Requirements |
| 1 month to 36 months | Up to 2.20% | A minimum of $5,000 for tenors of 1 month and above$250,000 for tenors of 7 days and 14 days$1,000,000 for tenors of less than 7 days | 1. Instant application 2. Automatic renewal 3. Higher interest | 1. 18 years old and above |
Click here to view the current fixed deposits rate of UOB
4. Citibank Singapore Dollar Time Deposit
| Tenure | Interest Rate | Minimum Deposit Amount | Key Features | Requirements |
| 1 week to 48 months | Up to 0.10% | $10,000 | 1. Competitive interest rates 2. Application can be made online 3. A variety range of tenure options | 1. At least 18 years old |
Click here to view the current fixed deposits rate of Citibank
5. Standard Chartered Singapore Dollar Time Deposit
| Tenure | Interest Rate | Minimum Deposit Amount | Key Features | Requirements |
| 1 month to 60 months | Up to 3.0% | A minimum of $25,000 for fresh funds promotion until 31st May 2024 | 1. High interest rate 2. For existing clients, placement can be made through online banking | 1. At least 18 years old |
Click here to view the current fixed deposits rate of Standard Chartered
6. RHB Singapore Dollar Fixed Deposit (Premier Banking)
| Tenure | Interest Rate | Minimum Deposit Amount | Key Features | Requirements |
| 3 to 36 months | Up to 3.30% (limited time promotion) | $20,000 | 1. Mobile banking placement available 2. Automatic renewal upon maturity 3. No premature penalty fee for SGD Fixed Deposit | 1. Singaporeans, PR and Foreigners 2. At least 18 years old |
Click here to view the current fixed deposits rate of RHB
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