Fixed deposits are one of the most preferred investment mediums available today. Thus, it’s no wonder that fixed deposits in Singapore have traditionally enjoyed massive support and the product continues to evolve in order to be a fuller, more customer friendly option. In essence, fixed deposits are a class of bank deposits that bestow a definite percentage of interest to the depositor after the deposit has hit its maturity date. Traditionally, fixed deposits have been the universal favorite when it comes to starting a savings portfolio and if the current trend in terms of fixed deposits in Singapore is to be considered, the craze isn’t going away anytime soon.
Fixed Deposit Interest Rates in Singapore
Displayed below are some of the top options for fixed deposits in Singapore with their associated interest rates-
|Product Name.||Bank.||Interest Rate (Amount- S$25,000 & tenure-12 months)||Return on Investment.|
|CIMB SGD Fixed Deposit (Promo)||CIMB Bank||1.25%||S$313|
|RHB Singapore Dollar Time Deposit||RHB Bank||0.63%||S$158|
|Bank of China SGD Time Deposit Account||Bank of China||0.60%||S$150|
|UOB Grand Senior Citizens Fixed Deposit||UOB Bank||0.38%||S$95|
|Standard Chartered Singapore Dollar Time Deposits||Standard Chartered Bank||0.35%||S$87|
|HSBC Singapore Dollar Time Deposit - HSBC Advance||HSBC Bank||0.25%||S$63|
|OCBC SGD Fixed Deposit||OCBC Bank||0.25%||S$63|
|POSB S$ Fixed Deposit||POSB Bank||0.25%||S$63|
|DBS S$ Fixed Deposit||DBS Bank||0.25%||S$63|
|ANZ Singapore Dollar Time Deposit||ANZ Singapore||0.22%||S$55|
|Citibank S$ Time Deposit||Citibank||0.10%||S$25|
Introduction to Fixed Deposits in Singapore
In Singapore, fixed deposits require a minimum input of S$1,000 to start and usually amounts to a tenure of 3 years (though shorter tenures are also quite popular). The logic is that, the longer the tenure of the fixed deposit, the better its returns. When the deposit completes its term, the depositor receives his investment along with the applicable interest amount. The interest applicable on fixed deposits differs from bank to bank.
Corporate / Company Fixed deposit
Corporate Fixed Deposits or Company Fixed Deposits are the type of deposits that are accepted by several financial institutions. Corporate Fixed Deposits are very similar to the bank fixed deposits. They also have interest rates and a fixed tenure. Corporate Fixed Deposits generally offer interest rates that are much higher than the regular fixed deposits of banks.
Under the schemes of Corporate Fixed Deposits, the customers and choose to deposit a particular sum of money with a certain company for a fixed tenure. The rate of interest remains fixed until the maturity period is reached. At the end of the holding period, the customers not only receive principal amount in return, but also, huge payouts as interests. The tenure of deposits can vary from 6 months to 7 years. Deposit certificates stating several important details including maturity date, interest rate, tenure, etc. are issued to the deposit holders by the companies. The interest that is earned on the company fixed deposits is taxable.
The company fixed deposits are not guaranteed at all in case of default. Different agencies like ICRA and CRISIL award rating points to the companies and their fixed deposit schemes. The frequency of compounding interest may vary. It could be annually, semi-annually, quarterly or monthly basis.
Fixed Deposit Advantages
It is definitely a great option to make your money work and earn more by investing in fixed deposit. A fixed deposit type is a beneficial investment which is deposited for a period of time, and at the end of the tenure you can enjoy the principal amount along with the interests as returns. There are several benefits of fixed deposit accounts.
- The primary advantage of having a fixed deposit account is that it encourages you to save money. The money in your fixed deposit account cannot be withdrawn for a particular tenure
- The interest rates are higher and earns you more profits at the end of the tenure than a saving account
- Your investment will definitely yield good returns
- In case of a cash flow squeeze, the fixed deposit account serves as a support system when there is a downfall in your business. It can also help to to meet money requirements in the future
- The interest earned on the fixed deposit amount is payable when it is mature. It depends on the tenure – annually or monthly
- It is up to you to choose the time frame for which you want the deposit the money. It could be as short as 30 days or as long as 10 years
- Depending on your various goals, you can maintain different fixed deposit accounts
Loan against Fixed Deposit
In order to avail funds for a small period of time, you can apply for loans against fixed deposit accounts from a particular bank. When in need of money, people either prematurely liquidate a fixed deposit or go for personal loans. While personal loans can come with heavy interest rates, there can be charges and penalty for prematurely liquidating a fixed deposit. It is advisable to go for a loan against the fixed deposits as the rate of interest charged is much less than the interest rates on personal loans.
The amount of loan granted against the deposit can be up to 90% of the total amount deposited in the FD account of the bank. The loan can be availed for a term which must not exceed the tenure of the fixed deposit.
Income Tax on Fixed Deposit
The interest earned on your fixed deposit amount is not tax free. Just as the tax slab for different people is different, similarly, the tax calculation on the fixed deposits also vary depending upon the amount earned by the individual in that year.
What is Fixed Deposit Maturity Amounts?
Fixed Deposits helps you save and earn at the same time. After the fixed deposit tenure ends, you get the principal amount as well as the interest amount on it as returns. This is known as the maturity amount.
Foreign Currency Fixed Deposit Schemes
If make a deposit in a foreign currency for a longer tenure, the rate of interest that you will earn will be higher than what you will earn if you deposit for a shorter tenure. There are many banks in Singapore that offer good foreign currency deposit schemes and these schemes are extremely beneficial for the customers.
Know More About Foreign Currency Fixed Deposit Schemes
Important Things to Keep in Mind While Applying for a Fixed Deposit
The following points illustrate the advantages of tying up your hard earned money in a competent fixed deposit, and serve as pointers to keep in mind before applying for a fixed deposit account in Singapore-
Highly Affordable- With a minimum payment of just S$1,000, fixed deposits are highly affordable.
Higher Rate of Interest- When compared to the usual savings account, the interest earned is higher.
Highly Flexible- Control the withdrawals and renewals as per your schedule, majorly customer centric.
Choose Your Coin- Flexibility to invest in a foreign currency fixed deposit- choose your currency.
Fill & Forget- Automatic renewal at current interest rate at end of term (unless specified otherwise).
More- In some cases, your fixed deposit will serve as collateral to apply for an overdraft facility.
Most importantly, fixed deposits are a ‘principal guaranteed’ financial product, this means that there is no way that you will lose your initial investment. Thus, fixed deposits in Singapore offer security with profits.
Top Singapore Banks with Fixed Deposit Products
- HSBC Bank
- ANZ Singapore
- RHB Bank
- DBS Bank
- OCBC Bank
- UOB Bank
- Bank of China
- Bank of East Asia Singapore
- Standard Chartered Bank
- POSB Bank
- ICBC Bank
- CIMB Bank
Why BankBazaar.sg for Fixed Deposits?
BankBazaar.sg offers ready, updated information about all the fixed deposit options available to you in Singapore, helping you compare between products and make an informed decision. Expounding,
Save Time and Patience- Check the varied features, including documentation, eligibility and other essential details in a matter of minutes. Saves the trip to the bank, and your fragile patience.
Find Everything you Need- Find details such as interest rates, essential terms and conditions, comparison against other fixed deposit options, literature that focuses on reviewing the fixed deposit as well as explaining its nuances, on BankBazaar.sg. Be informed, and revel in the interactive experience.
Compare and Review- BankBazaar.sg allows you to compare your chosen fixed deposit product against other options available in Singapore. Read reviews from your peers, and contact BankBazaar’s expert customer support team in case of any queries or concerns.
Privacy Assured- We treat all the information that you may provide us with the maximum care possible. All your information is circulated and stored on robust, encrypted systems that have 0% tolerance towards malicious intent.
Fixed Deposit Frequently Asked Questions
- What are the different types of fixed deposit options available in Singapore?
The following are the popular types of fixed deposit products available in Singapore-
- Fixed deposit schemes for individuals.
- Fixed deposit schemes for corporates.
- Foreign currency deposit schemes for individuals.
- Foreign currency schemes for corporates.
S$1,000 is the minimum required amount. There isn’t a particular ceiling with regards to the maximum amount.
The following need be supplied. Note that, the bank in its individual capacity can request for more documents.
For Permanent Residents,
- Photocopy of National Registration Identity Card (NRIC).
- Copy of Bank account statements for last 3 months.
- Photocopy of Passport
- Proof of address (i.e. utility bill, driving license etc.)
Yes. The option to open a fixed deposit under joint names is a possibility. These accounts can be operated under any of the following modes- Individually, jointly, Either or Survivor, Former or Survivor, etc.
The aptly named Deposit Insurance pertains to the S$50,000 insurance offered by the Singapore Deposit Insurance Corporation on all Singapore dollar deposits. This is mandatory by Singaporean law. If your fixed deposit is a foreign currency deposit, dual currency investment, invested by a corporation/non-individual, or other such investment products, then Deposit Insurance doesn’t apply to you.
In Conclusion- The option to save and earn a healthy interest rate through fixed deposits is open to any Singaporean who has the money to spare. It’s always a good time to invest in a fixed deposit in Singapore and save for the demands and expectations of the future. We at BankBazaar.sg are committed to helping you avail this handy option.
Latest Blog posts on Fixed Deposit
An Introduction to Fixed Deposits in Singapore
Saving money is of utmost importance to people from all walks of life. You need to save money so that you can be prepared for the rainy days and make sure that you can take care of your financial responsibilities in life. Read More…
News About Fixed Deposit
Is it possible to claim deposits with no paper records?
What will happen if my bank’s IT system fails and I do not have have hard copies of my account balance? How do I claim the money? Every Singaporean would’ve wondered about this. Banks in Singapore are expected to have procedures to recover data in case the data is lost during some IT infrastructure failure.
If the bank does not have backup of the data and is administered by SDIC (Singapore Deposit Insurance Corporation), the customer does not have to file a claim with SDIC as the bank would’ve provided all the details required to process compensation. The customer can look for announcements on media regarding the compensation.
11th April 2017
Private banks digging into the Asian business potential
With banks such as ABN Amro, ANZ and Barclays leaving Singapore for expansion of business in their home turfs, local companies are gaining traction. Private banks such as DBS Bank and Bank of Singapore (OCBC) are taking over the wealth and investment businesses from the exiting companies and making the most of the opportunities offered by Singapore in particular and Asia in general.
DBS has so far acquired ANZ’s wealth and retail division in Asia, the assets of Bowa Bank in Taiwan, the retail and commercial banking section of Royal Bank of Scotland in China; and Asian private banking business of Societe Generale.
DBS and Bank of Singapore chiefs are positive that the current slowdown in financial markets will wear down and the businesses in Asia will bear fruits in the long term. The banks are looking to create a sustainable wealth management business and adapt the products and services to suit the requirements of Asian customers.
04th January 2017
Singaporean investors in India will now have to pay capital gains tax
Singapore and India have decided to amend their tax treaty, making Indian investing less lucrative for Singaporean investors. The move follows India’s amendment of income and capital gains tax treaties with Mauritius and Cyprus.
Investments from Singapore will, from April 2017, be subject to capital gains tax as per the Indian tax regime. For the first 2 years – that is, from April 2017 to March 2019 – the capital gains tax would be 50% of the regular Indian rate. After that, the rates would be regularised as per prevailing rates.
The move follows the Narendra Modi government’s focus on reducing black money and corruption. Foreign Direct Investment (FDI) inflow from Singapore to India was at US$50.6 billion between April 2000 and Sept 2016. This was more than 16% of the total capital inflow to India.
04th January 2017
Singapore and the United Kingdom Sign Agreement for Sharing Account Information
The Inland Revenue Authority of Singapore (IRAS) and Her Majesty’s Revenue and Customs (HMRC) have entered into a deal to exchange financial information automatically as per Common Reporting Standard (CRS) regulations.
The CRS is a universally accepted standard associated with the method of exchanging financial information automatically.
Singapore and the United Kingdom will start AEOI by September 2018. According to the agreement, IRAS will automatically trade financial data of accounts in Singapore retained by the United Kingdom tax residents with the HMRC. On the other hand, the HMRC will automatically exchange financial information of accounts in the United Kingdom belonging to Singapore tax residents with IRAS.
08th November 2016
MAS Proposal to Reduce Restrictions in Investments
Insurance companies across the island will be imposed with lesser restrictions when investing in equities and bonds as MAS (Monetary Authority of Singapore) is proposing new rules. For the past 4 years, the draft risk-based capital framework has been in the pipeline with an aim to improve the risk cover and assess capital adequacy more efficiently compared to the framework of 2005.
The biggest advantage for insurers looking to make investments will be the broadening of eligibility criteria in the case of matching adjustment. This relaxation in the eligibility criteria will certainly help insurers in the management of their asset liability. This relaxation will also allow bonds in US Dollar to match liabilities in Singapore Dollar. However, this will only be applicable in case of an eligible currency swap and using callable bonds and cash flows only prior to the first call. Since majority of liabilities in the country are denominated in Singapore Dollar and US Dollar, MAS only addressed these two currencies.
26th July 2016
Singapore will be gaining from RMB rise
The development strategy by the Government of China is a unique framework. It is called One Belt, One Road and focusses on the cooperation and connectivity between China and other countries of Eurasia. There are two components of this particular plan. They are 21st Century Maritime Silk Road and Silk Road Economic Belt. This strategy (One Belt, One Road) will be helpful for connecting the growing economic potential of both European countries and East Asian countries. For the strategy to be executed, several measures have been undertaken by the Government of China. These measures include setting up different financial institutions for support like Silk Road Fund, AIIB (Asia Infrastructure Investment Bank) and New Development Bank.
The infrastructural projects will be facilitated by these institutions in all the developing countries. Singapore’s geographical position has made it the first offshore RMB unit outside Greater China. The island is an extremely important focus point in 21st Century Maritime Silk Road.
18th July 2016
UOB Deposits Savings Promotion
Runtime – This promotion is valid between July 1 and August 31, 2016.
• Earn bonus interest rate of up to 1.28% p.a. on your fresh funds balance:
• Bonus interest rate of 0.78% p.a. for incremental fresh funds balance between S$15,000 and S$50,000.
• Bonus interest rate of 0.98% p.a. for incremental fresh funds balance above S$50,000 and up to S$100,000.
• Bonus interest rate of 1.18% p.a. for incremental fresh funds balance above S$100,000 and up to S$1,000,000.
Note: An additional 0.10% Prevailing Interest Rate will be awarded for account balances of more than S$350,000.
• Get an Exclusive Gift on applying for a UOB Deposits Savings Account:
• Receive a National Day NETS FlashPlay Limited Edition Card on depositing S$51,000 worth of Fresh Funds within the promotional period.
• The cash value of each card is S$51.
• You can collect the full set of these limited edition cards in July and August, 2016.
Terms and Conditions:
• The maximum interest rate that can be earned on deposits in this account during the promotional period is 1.28% p.a. This includes the Bonus Rate + Prevailing Interest Rate.
• New/existing account holders who are earning preferential rates on this account cannot apply for this promotion.
• For further details on this promotion or for more information on the terms and conditions, please contact UOB.
ANZ Signature Promotion
Run Time – This is an ongoing promotional offer.
Particulars – ANZ bank offers promotional rates of interest with its fixed deposit account. Enjoy an interest rate of 1.50% per annum for a tenure of 18 months. The time deposit must be S$150,000 or above. Enjoy an interest rate of 1% per annum for a 18 month tenure when you deposit less than S$150,000.
Enjoy an interest rate of 0.90% per annum with your USD current account when you deposit $300,000 to less than $3,000,000. You can avail 0.50% per annum rate of interest when you deposit $50,000 to less than $300,000.
Avail an interest rate of 1.50% per annum when you deposit S$1,000,000 to S$3,000,000 in your ANZ Statement Savings Account (SGD). For deposits from S$150,000 to less than S$1,000,000, you can avail an interest rate of 1.20% per annum. Enjoy 1% per annum rate of interest for deposits of S$50,000 to less than S$150,000.
Enjoy cash rebate of 0.40% when you use your Visa debit card issued by ANZ to make purchases.
Terms and Conditions – Get in touch with ANZ Bank to know more about the terms and conditions of this particular promotional offer.
POSB Launches SAYE Account for NSFs Offering 2% Interest Rate
After the launch of the ‘Save-As-You-Serve’ scheme, POSB has now launched the Save-As-You-Earn (SAYE) account wherein our national servicemen will enjoy a 2% p.a. interest rate. This account is applicable to all newly enlisted as well as current NSFs who transfer their salaries into the SAYE account to earn 2% p.a. interest rate for a period of 24 months. Post 24 months, the account will earn the interest rate of an ordinary savings account. This interest rate offered by POSB is higher than that of POSB and DBS bank savings accounts and OCBC’s 360 account, all of which offer an interest rate of 0.05% p.a.
Additionally NSFs and NSmen will also enjoy a rebate of 2% on contactless payments made locally on their Safra DBS debit card or HomeTeamNS-PAssion-POSB Debit Card. Minimum spend of S$400 on the card is required of NSmen, however there is no minimum spend requirement for NSFs. The rebates that can be earned per month is capped at S$50.
21st June 2016
$80 million to be invested by IFC in CLO of United Overseas Bank
IFC (International Finance Corporation), World Bank’s private lending arm, has announced to invest $80 million in a brand new CLO (Collateralized Loan Obligation) of United Overseas Bank based in Singapore.
This investment will be carried out via several levels of mezzanine securities. The name of this Collateralized Loan Obligation is United Asia Loan Funding Private Limited. These financial instruments collect high yielding corporate debt and sells to for financing large buyouts. Lately, the market for these products has been quite tough. The loan funding will be used to provide security to the growing loan markets in Asia. International Finance Corporation’s objective is to encourage the Collateralized Loan Obligation market to spread in Asia that has stayed dormant since 2008 global financial crisis.
20th June 2016