Fixed deposits are excellent tools for beginner investors. These investments pose minimal risks, and they hone in decent profit without lifting a finger.
All you have to do is choose a bank, deposit your money and weight for interest to accumulate. Fixed deposit interest rates might not be high, but they’re better than nothing. Plus, they’re free.
For some, they will choose between Robo Advisors like StashAway or fixed deposit accounts.
This article is here to help you by providing you with the banks’ latest fixed deposit rates.
You have to factor in more than interest rates. The minimum required amount and tenure also influence your choice.
Here’s how your best options compare:
|Financial institution||Minimum amount||Tenure||Interest rates|
|Hong Leong Finance||$20,000||36 months||0.75% p.a.|
|DBS||$1,000||8 months||0.6% p.a.|
|Maybank||$1,000||36 months||0.6% p.a.|
|Standard Chartered||$25,000||3 months||0.5% p.a.|
|UOB||$20,000||10 months||0.45% p.a.|
|Hong Leong Finance fixed deposit rate|
|Interest rate||0.75% p.a.|
In terms of fixed deposits, their current package is one of the most alluring.
As you can see, Hong Leon Finance sports the most considerable fixed deposit interest rate: 0.75%.Hong Leong Finance isn’t a bank, but it’s a trustworthy financial institution. Besides, Hong Leong’s packages are on par with central Singapore banks, such as DBS and UOB. Many people on the island work with this institution thanks to its frequent promotions.
However, that means you’ll need to deposit your money with them for three years.
The other two deposit options aren’t that bad either, though:
You’ll get a 0.65% interest per year if you’re choosing the two-year deposit and 0.52% annual interest if you’re going with the 13-month account.
Before jumping in with Hong Leong, consider the downsides:
Firstly, some experts posit that non-banking institutions are riskier than banks.
Secondly, you’ll need to deposit at least $20,000 with them. If you’re like most Singaporeans, you may not have access to such an amount. But even if you do, tying that much money into a deposit isn’t an excellent idea.
For example, if something happens and you need quick cash before the tenure expires, you’ll need to take up a loan. If you have spent hours looking for a personal loan, let our system help you filter out the best financial institutions! You can click here to use our free tool.
But there’s another drawback: Singapore’s inflation rate for 2021 is estimated at 2.2%. That’s one of the worse news for people who’ve tied most of their funds into fixed deposits because inflation affects purchasing power. Therefore, even if you technically withdraw around $20,450 at the end of your tenure, that money might not be worth the same.
Other than that, Hone Leong Finance offers the quickest way to getting rich-ish if you already have $20,000 to spare.
|DBS fixed deposit rate|
|Interest rate||0.6% p.a.|
|Deposit amount||$1,000 to $19,999|
If you visit the DBS website, your heart will skip a beat, and you’ll think we tricked you. DBS’s fixed deposit interest rates can get up to 1.3%!
But only if you already have an open deposit account with them that’s coming to a close.
So, DBS’s best offer goes to its already loyal customers to stop them from withdrawing their money. No surprise there.
New customers have some advantages in store too.
For example, 0.6% per year is still pretty reasonable and close to what Hong Leong Finance offers. The clear advantage, in this case, is that you’re not required to hone in $20,000 minimum.
In fact, DBS targets people who can’t make the Hon Leong threshold, as their deposit limits vary between $1,000 and $19,999.
That’s good news because $1,000 is something most people can gather.
Now let’s look at the 8-month tenure. You might believe that eight months aren’t enough for more money to accumulate. But who’s to say DBS won’t come up with a better offer at the end of the year? You can always renew your fixed deposit then.
Besides, remember what we discussed above about how inflation affects your fixed deposits? With upcoming high inflation in Singapore, short-term deposits are a reasonable idea.
Here’s another reason to choose DBS: it caters to Singaporeans, PRs and foreigners who are at least 12 years old.
|Maybank fixed deposit rate|
|Interest rate||0.6% p.a.|
|Minimum deposit amount||$1,000|
Maybank has a competitive offer with its fixed deposit interest rate of 0.6%/ year. Besides, the minimum sum you can deposit is a manageable $1,000, just like with DBS. But unlike DBS, you don’t have a maximum cap to worry about.
Warning: this interest rate is only valid for the 36-month account.
So, if you liked DBS’s offer but want a longer commitment from your bank, choose Maybank’s fixed deposit. If you park in $1,000 with Maybank, you’ll withdraw almost $1020 at the end of these 36 months.
But if you’re worried about inflation and the such, Maybank’s fixed deposit has shorter tenures:
Besides, this fixed deposit addresses Singaporeans, PRs and foreigners who are at least 16 years old. The even better news is the lack of fees you can expect.
|Standard Chartered fixed deposit rate|
|Interest rate||0.5% p.a.|
|Minimum deposit amount||$25,000|
Standard Chartered caters to people who have a high amount of money to spare and want to beat inflation. As such, their minimum deposit amount is $25,000, and tenure is three months.
Their 0.5% / year interest rates are mediocre but not to be discarded. You won’t win heaps of money during your three-month tenure, but your interest will accumulate.
So, we recommend this option to people who only want to deposit their money for a short time. This might be the case with you if:
Alternatively, choose the 1-60-month tenure for a minimum of $5,000 deposit and 0.1% interest.
|UOB fixed deposit rate|
|Interest rate||0.45% p.a.|
|Minimum deposit amount||$20,000|
UOB is competing with Standard Chartered with a short-term medium-interest fixed deposit package. As such, you’ll need less money to spare that at Standard Chartered: $20,000. Conversely, the tenure is longer at ten months, and the interest is equally appealing (or not, depending on your perspective) at 0.45% per year.
However, Hong Leong Finance’s offer is best out of these three if you have $20,000+ to deposit because its interest is 0.52% p.a. for 13 months.
UOB’s fixed deposit is somewhat more trustworthy than Hong Leong, although a year-long tenure is pretty safe anyway.
Fixed deposit accounts are reliable assets if you’re looking to diversify your portfolio with a very low-risk investment. Other investment options include ETFs, Options, Cryptocurrencies, the S&P 500 and more.
Choose carefully from the options above, considering all your needs, preferences, and market conditions.
Remember to have enough liquidity apart from your investments in case of a financial emergency or consolidate and clear up your debts. Some financial institutions require penalties if you withdraw your money before the deadline.
Also, consider the current inflation and plethora of tempting offers that might arise before setting your tenure. Take into account the possibility of opening a savings account, too, especially as their interests are on par with fixed deposit interest rates.
And while it is important to manage your finances, remember to get enough rest and chill whenever you can! Mental health is important too!
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