Looking for ways to grow your money? Fixed deposits remain a reliable choice for steady returns. In June 2025, several banks offer competitive deposit rates, making it easier to maximize your savings.
DBS leads with a 2.45% return on 12-month terms, while CIMB and Citibank follow closely. Shorter tenures, like 3-6 months, may suit those needing quicker access to funds. Alternatives like StashAway Simple™ also provide flexible options.
Rates have adjusted since their 2023 peak, so staying updated ensures you secure the most favorable terms. Compare providers to find the right fit for your financial goals.
Key Takeaways
- DBS offers the highest return at 2.45% for 12-month fixed deposits.
- Shorter tenures (3-6 months) provide lower but quicker returns.
- Bank of China’s mobile promo includes a 2.15% rate with a low minimum deposit.
- StashAway Simple™ projects higher returns for flexible savings.
- Monthly updates help track changing deposit rates.
Introduction to Fixed Deposits in Singapore
Want a secure way to grow your savings? A fixed deposit locks in your money for a set period, offering guaranteed returns. These accounts are ideal for short-term goals or emergency funds.
What Is a Fixed Deposit?
A fixed deposit (FD) is a low-risk product where you deposit a lump sum for 1 month to 3 years. Banks pay a fixed interest rate, higher than regular savings accounts. Early withdrawals may forfeit earnings—like Maybank’s 6-month FD at 2.45% for $20k.
Key features:
- Regulated by MAS and insured by SDIC up to $75k.
- Predictable returns, unlike volatile stocks.
- Low entry barriers (e.g., $500 at Bank of China).
Why Choose Fixed Deposits?
FDs balance safety and growth. Here’s why they stand out:
- Capital protection: Your principal is secure.
- Flexible tenures: Match timelines to goals (e.g., 3 months for vacations).
- Higher rates: Outperform standard savings accounts.
Note: Current FD rates (~2.45%) may lag behind inflation. Diversify if long-term growth is your aim.
Best Interest Rate Singapore: Top Fixed Deposit Rates in June 2025
June 2025 brings fresh opportunities for savers. Banks are competing with standout deposit rates, ideal for short-term goals or parking emergency funds. Below, we break down the top offers and key details.
Current Market Overview
This month’s rates range from 1.90% to 2.45%, with tenures as short as 3 months. Promotions and digital exclusives add extra value. Always check minimum deposits—some require just $500.
Bank of China: Mobile-Exclusive Deals
Using their app unlocks a 2.15% rate for 12-month terms, doubling the counter rate of 1.90%. The minimum drops to $500 (vs. $20k in-branch). Perfect for tech-savvy savers.
Citibank’s New Funds Promotion
Deposit $50k+ for 3–6 months to earn 2.10%. *New funds* are required—transfers from other Citibank accounts won’t qualify. Ideal for lump-sum investors.
DBS/POSB: Tiered Rates
Their 12-month best fixed deposit pays 2.45%, but only for balances under $20k. Larger sums drop to 2.20%. Great for modest savers.
HSBC Premier vs. Standard
Premier clients earn 2.00% with $30k in wealth holdings. Regular accounts cap at 1.85%. A tiered system rewarding loyalty.
| Bank | Tenure | Rate | Minimum Deposit |
|---|---|---|---|
| Bank of China (App) | 12 months | 2.15% | $500 |
| Citibank | 3–6 months | 2.10% | $50k |
| DBS/POSB | 12 months | 2.45% | $1k–$19k |
| HSBC Premier | 12 months | 2.00% | $30k* |
*Requires linked investment products. Rates valid until June 30, 2025.
How to Compare Fixed Deposit Rates
Not all fixed deposits are created equal—here’s how to pick wisely. Focus on tenure, minimum deposits, and promotional terms to avoid hidden pitfalls.
Key Factors to Consider
Tenure flexibility matters. A 12-month deposit might offer 2.45%, while a 3-month term could drop to 1.90%. Match the timeline to your goals.
Minimum requirements vary widely. Bank of China accepts $500, but Citigold demands $50k. Always check entry barriers before committing.
Watch for penalties. Early withdrawals often incur 0.5%–1% fees. Lock funds only if you’re sure you won’t need them.
Understanding Promotional Rates
Banks lure customers with limited-time deals. Maybank’s bundle promo pays extra if you maintain $2k in a linked account. HLF Digital even throws in a $10 cash credit.
Beware of fine print. Promos often require fresh funds—transfers from existing accounts won’t count. Read the definitions carefully.
- Rate locks: Time your deposit around Fed announcements for potential hikes.
- Linked products: Some banks boost rates if you hold investments with them.
Fixed Deposits vs. Other Low-Risk Investments
Fixed deposits aren’t the only way to earn steady returns—here’s how they stack up. Whether you prioritize liquidity, tax benefits, or ease of access, each investment has unique perks.
Fixed Deposits vs. Singapore Savings Bonds (SSB)
SSBs offer tax-free returns of 2.20%–2.56% over 10 years. Unlike fixed deposits, you can exit penalty-free any month. However, rates adjust every 6 months, unlike FDs’ locked-in terms.
Best for: Long-term savers who value flexibility.
Fixed Deposits vs. Treasury Bills (T-Bills)
T-Bills yield 2.30% for 6-month terms, slightly edging out some FDs. They’re backed by the government, making them ultra-low risk. But minimum bids start at $1,000, higher than many bank deposits.
Best for: Those with larger cash reserves seeking safety.
Fixed Deposits vs. High-Yield Savings Accounts
Accounts like OCBC 360 offer up to 6.30%, but require meeting conditions (e.g., salary credits). Unlike FDs, your money stays liquid. Yet rates can drop anytime—no guarantees.
- Liquidity: HYSAs win for instant access.
- Effort: FDs require no monthly hoops.
Best for: Active savers who can meet bonus criteria.
Top Banks Offering Competitive Fixed Deposit Rates
Several banks stand out for their attractive deposit offers this season. Whether you’re investing a small sum or a large lump sum, options abound to match your needs.
Bank of China: Best for Small Deposits
Bank of China’s mobile app offers 2.15% for 12-month terms—double the counter rate of 1.90%. The minimum deposit drops to just $500, ideal for beginners. Pro tip: Always check for app-exclusive promos.
Citibank: High-Tier Benefits
Citigold clients enjoy rates up to 2.30% for larger deposits. Private banking tiers unlock even better terms. Note: New funds are required—transfers from existing accounts won’t qualify.
DBS/POSB: Rate Cliff Alert
DBS leads with 2.45% for 12-month deposits under $20k. Larger sums drop to 2.20%. Pair with a Multiplier Account to maximize earnings.
HSBC: Premier Perks
HSBC Premier clients earn 2.00% with linked investments. Their USD fixed deposits cater to expats, adding currency flexibility. Reliability ratings (Moody’s/SP) add peace of mind.
“Fixed deposits are a cornerstone of low-risk portfolios—choose a bank that aligns with your cash flow needs.”
- Bank of China: Mobile rates beat in-branch offers.
- Citibank: Tiered rewards for high-net-worth clients.
- DBS: Watch the $20k threshold for optimal rates.
- HSBC: Premier status unlocks exclusive benefits.
Factors to Consider When Choosing a Fixed Deposit
Smart savers evaluate multiple factors before locking in their funds. While the interest rate grabs attention, other details—like tenure flexibility and hidden fees—can make or break your returns.
Interest Rates
Rates have dipped since 2023’s peak of 3.5%, but June 2025 still offers competitive deals. For example, SIF provides 2.05% for a $10k deposit over 3 months—if applied online. Always check if promotions require minimum deposit thresholds or fresh funds.
Tenure Options
Shorter terms (3–6 months) suit emergency funds, while 12-month locks maximize earnings. A laddering strategy—splitting funds across 3/6/12-month tenures—balances liquidity and returns. Note: Senior citizens may qualify for bonuses (e.g., HLF’s +0.25%).
Minimum Deposit Requirements
Banks like RHB Premier demand $20k, while others accept $500. Smaller deposits may face processing fees. Use FD calculators to project earnings before committing. Remember, higher wealth tiers often unlock better rates.
“Align your deposit’s tenure with upcoming expenses—locking funds you’ll need soon risks penalties.”
- Rate trends: Compare current offers to historical highs.
- Flexibility: Some banks allow partial withdrawals without penalties.
- Promotions: Digital-only deals (like SIF’s) often beat in-branch rates.
Understanding Fixed Deposit Promotions
Banks often sweeten fixed deposit deals with time-sensitive promotions. These limited-time offers can boost your earnings, but they come with specific requirements. Knowing how to navigate them ensures you lock in the best terms.
How Promotions Affect Rates
Promotional rates typically exceed standard offers by 0.20%–0.50%. For example, CIMB Preferred Banking pays 2.20% for 3-month deposits of $10k—higher than their base rate. Some promotions include bonus interest for meeting conditions like maintaining linked accounts.
Watch for fine print. Citibank’s June-only 2.10% offer applies only to new funds. Transfers from existing accounts won’t qualify. Always verify eligibility before committing.
Examples of Current Promotions
Here’s what’s available in June 2025:
- Maybank Bundle Promo: Earn an extra 0.30% by keeping $2k in a linked savings account.
- HLF Digital: Get a $10 cash credit for signing up online.
- OCBC Insurance Tie-Up: Higher rates when you buy eligible products.
“Promotions are a double-edged sword—read the terms to avoid post-offer rate drops.”
Negotiation tip: Ask relationship managers about unadvertised deals, especially for larger deposits. Banks may waive fees or offer better terms to retain clients.
Alternatives to Fixed Deposits
Exploring diverse savings options can enhance your financial strategy. While fixed deposits offer stability, tools like cash management accounts and foreign currency products provide flexibility or higher potential returns.
Cash Management Accounts: Liquidity Without Penalties
Platforms like StashAway Simple™ yield 2.8% with no lock-in period. Unlike FDs, these accounts allow instant withdrawals—ideal for emergency funds. Syfe Cash+ guarantees 2.25% for 3-month terms, blending safety with accessibility.
| Feature | Fixed Deposits | Cash Management |
|---|---|---|
| Liquidity | Penalties for early withdrawal | Instant access |
| Returns | Fixed (e.g., 2.45%) | Variable (e.g., 2.8%) |
| Minimum Deposit | $500–$50k | Often $0–$1k |
Foreign Currency Fixed Deposits: High Rewards, Higher Risks
Bank of China’s USD FD offers 4.60%, but it’s not SDIC-insured. Exchange rate fluctuations add volatility—a 5% SGD/USD swing could erase gains. MAS regulates foreign banks, yet tax treaties may reduce withholding on USD interest.
“Currency deposits suit those comfortable with forex markets—hedge risks by diversifying across tenures.”
- Forex examples: A 6-month USD FD gained 3% in 2024 but lost 2% during SGD rallies.
- Regulations: Check MAS licensing for non-local banks.
- Taxes: 15–30% withholding on USD earnings may apply.
How to Maximize Your Returns with Fixed Deposits
Boosting your savings with fixed deposits requires smart strategies. Beyond comparing rates, timing and allocation play crucial roles. Here’s how to optimize your earnings while keeping risks low.
Strategies for Higher Returns
Ladder your deposits. Split your funds across 3-, 6-, and 12-month tenures. This balances liquidity and higher interest opportunities. For example, reinvest maturing 3-month deposits if rates rise.
Track rate cycles. The Fed’s Q3 2025 cut forecasts suggest locking in longer terms soon. MAS policy statements often hint at local trends. Bulk deposits ($100k+) may qualify for corporate rates—ask your bank.
“Auto-renewal can cost you—banks default to lower rates. Always manually review terms.”
When to Lock in Your Rates
Act before economic shifts. The OECD’s 2.1% growth projection may slow rate hikes. For returns stability, consider secondary markets for FDs or hedge with T-Bill auctions.
Short-term needs? Park cash in 1–3-month FDs. For goals beyond 12 months, mix FDs with SSBs to diversify. Avoid penalties by aligning tenures with upcoming expenses.
- Rate alerts: Set notifications for bank promotions.
- Flexibility: Some banks allow partial withdrawals without fees.
- Currency diversification: USD FDs offer 4.6% but carry forex risks.
Common Mistakes to Avoid with Fixed Deposits
Even savvy investors can stumble when managing fixed deposits—here’s how to steer clear of pitfalls. From overlooked fees to inflation risks, small missteps can shrink your returns. We’ll break down key errors and smarter alternatives.
Overlooking Early Withdrawal Penalties
Need cash before maturity? Banks like UOB charge 0.75% on withdrawn amounts. This fee can erase months of interest, especially on short-term deposits. Always check:
- Partial withdrawal policies (some banks allow penalty-free access to 50% of funds).
- Grace periods—OCBC gives 7 days post-maturity to withdraw without penalties.
| Bank | Early Withdrawal Fee | Partial Withdrawal Allowed? |
|---|---|---|
| UOB | 0.75% | No |
| DBS | 0.50% | Yes (up to 50%) |
| Maybank | 1.00% | No |
Ignoring Inflation Rates
2025’s projected 2.8% inflation outpaces average FD rates of 2.45%. That’s a -0.35% real return. Consider:
“CPI-linked bonds or T-Bills often adjust for inflation—pair them with FDs to hedge purchasing power loss.”
Stagger deposits across tenures to reinvest if rates climb. For long-term goals, mix FDs with SSBs for better inflation protection.
Pro tips:
- Set calendar reminders for maturity dates—auto-renewals often default to lower rates.
- Update FD nominee details to avoid probate delays (MAS requires separate forms for each deposit).
Future Trends in Fixed Deposit Rates
Economic shifts in 2025 will reshape fixed deposit strategies. With the OECD revising GDP growth to 2.1% and MAS core inflation hitting 3.5%, savers must stay agile. This section explores how global economic trends and policy changes could impact your returns.
Predictions for 2025 and Beyond
The Fed’s potential rate cuts may soften SGD fixed deposit rates. Analysts suggest locking in longer tenures now before dips occur. China’s property crisis adds uncertainty—offshore capital flows could tighten local liquidity.
Singapore’s 2025 GST hike may spur MAS to stabilize inflation with tighter policies. Green bonds are gaining traction, offering 2.8% returns with sustainability perks. Digital banks like Trust Bank disrupt traditional models with lower overheads and higher yields.
How Global Economic Trends Affect Rates
Forex volatility impacts USD-denominated FDs. A strong SGD could erode gains from higher-yielding foreign deposits. Diversify your wealth across currencies and tenures to mitigate risks.
- Fed watch: Delayed cuts may extend current FD rate peaks.
- China’s slowdown: Reduced investment could lower regional rates.
- Digital disruption: Neo-banks may pressure traditional lenders to compete.
“The next 12 months will test fixed deposits’ resilience—stay informed to capitalize on short-term opportunities.”
Conclusion
Locking in steady returns requires smart choices—here’s a recap. DBS leads with a 2.45% return for 12-month terms, while Bank of China’s mobile-exclusive offers make small savings work harder.
Diversify your strategy. Pair shorter fixed deposit tenures with SSBs to balance liquidity and growth. Remember, inflation can erode gains—stay proactive.
Track rates regularly. Banks adjust promotions often, so compare live updates on their portals. Ready to act? Explore your options today.
