Fixed or term deposits are risk-free investment instruments offered by banks and other financial institutions. With fixed deposits, your principal sum will be sheltered and at the same time, you will get guaranteed returns in the form of interest earned which is often lower than other investment instruments. After you deposit the money, you will not be able to take it out until the tenure that you have chosen elapses.
You can, however, withdraw your fixed deposit account funds prematurely but you will either earn no interest under such circumstances or earn interest on a pro-rata basis. Once the deposit matures, you will get back your original deposit along with the interest. Often, tenures for fixed deposits range from 1 month to 60 months. If you are considering parking your funds for a short period of time, you could opt for a one-year deposit. Many banks and financial institutions in Singapore are offering 12-month deposits at competitive interest rates. You can find out more about the best interest rates available on one-year SGD deposits here.
With SBI Singapore you will get an interest rate of up to 0.70% p.a. on the 12-month SGD term deposit. However, to get this rate of interest, you will have to place an amount of at least S$50,000. In addition, you can take a loan against your term deposit. You can borrow up to 90% of the deposit amount. The bank automatically renews your fixed deposit upon maturity.
Standard Chartered offers an interest rate of 0.35% p.a. on one-year SGD time deposits. The minimum initial deposit amount is S$5,000. You can operate your account and transactions at any time and from anywhere through Standard Chartered phone banking and online banking services. However, the bank also offers promotional interest rates from time-to-time.
RHB Bank currently has a promotional offer on its Singapore Dollar Fixed Deposit. For the one-year tenure, you will get an interest rate of 1.50% p.a. if you place at least S$50,000 and 1.45% p.a. on placing between S$20,000 and S$49,999. This offer is however valid only until 31 July 2018. In addition, the bank automatically renews your fixed deposit once it matures. You will also get an overdraft facility against your deposit amount at affordable rates.
With UOB Singapore Dollar fixed deposit, you will get an interest rate of 0.25% p.a. with a tenure of one year. However, you will have to place an amount of at least S$5,000. The interest that you earn will be credited to you at the end of the year. The bank automatically renews your fixed deposit upon maturity. With this deposit, you will enjoy financial flexibility with the overdraft facility associated with your i-Account.
OCBC is offering 0.25% p.a. interest on one-year SGD term deposits, regardless of the amount you place. With OCBC, you can place any amount in the range of S$5,000 to S$999,999. If you wish to place more than S$1 million, you will have to get in touch with the bank. OCBC also offers various online options to allow you to keep an eye on your investments on a regular basis. Like other banks, OCBC also offers promotional rate of interest which is now at 1.35% p.a. for a 1-year SGD Time Deposit.
Maybank offers between 0.70% p.a. and 0.75% p.a. interest on SGD deposits with a tenure of one year. For deposits in the range of S$1,000 to S$249,999, you will earn interest at a rate of 0.70% p.a. For deposits of S$250,000 to S$999,999, you will enjoy returns at 0.75% p.a. The bank is running a promotion offering an interest rate of 1.65% p.a. for a deposit amount between S$30,000 and S$300,000 and 1.75% p.a. for a deposit amount of S$300,000 and above when you pledge fresh funds into your Maybank savings or current accounts.
With DBS, you will earn at the rate of 0.60% p.a. on one-year SGD fixed deposits. The minimum placement required is S$1,000. You can apply for a DBS fixed deposit account online or you can visit the nearest branch. DBS also allows you to use your SGD deposit as collateral for a credit facility. Even a 12-year old is eligible to have a fixed deposit account with DBS. You can even convert your personal fixed deposit account into a joint account.
The rate of interest that you get with the 12-month fixed deposit is based on the relationship you have with the bank. If you are a Personal Banking or an Advance Banking customer, you will get an interest rate of 0.25% p.a. On the other hand, if you are an HSBC Premier Banking customer, you will get an interest rate of 0.28% p.a. The minimum placement amount is S$5,000 for all customers.
Hong Leong Finance offers up to 1.05% p.a. on Singapore Dollar deposits for one year, based on the amount you deposit. If your deposit is S$50,000 or less, you will earn 0.45% p.a. If the deposit amount is more than S$50,000 but less than S$100,000, you will enjoy interest at a rate of 1% p.a. For deposit amounts in the range of S$100,000-S$999,999, you will earn 1.05% p.a.
In addition, if you are a senior citizen (aged 55 or more) and are placing the amount for at least 12 months, you will earn an extra interest of 0.125% p.a.
Bank of China offers an interest rate of up to 0.6875% p.a. on their fixed deposits with 1-year tenures. Earn 0.60% p.a. on deposit amounts of up to S$499,999.99. If the amount you have deposited is S$500,000 or more with SGD time deposit, you will earn an interest of 0.6875% p.a. The minimum age to open this account is 15 years.
The deposits of non-bank investors are insured by the Singapore Deposit Insurance Corporation or SDIC, for up to S$50,000.
In addition to the fixed deposit mentioned above, there other financial institutions that offer one-year fixed deposit account.