Looking for a safe way to grow your savings? Fixed deposits are a popular choice for Singaporeans who want steady returns with low risk. These financial tools lock your money for a set period, offering predictable interest rates that often outperform regular savings accounts.
In 2021, options range from short-term placements (as little as one week) to longer commitments of up to three years. Minimum deposits start at S$500, making it accessible for different budgets. Some banks even offer special promotions with higher rates for new customers or senior citizens.
Before choosing, consider factors like early withdrawal penalties and how interest gets calculated. Most accounts are insured up to S$100k by SDIC, adding an extra layer of security. Learn more about fixed deposit basics to make informed decisions.
Key Takeaways
- Secure investment option with guaranteed returns
- Multiple tenure choices from one week to three years
- Minimum deposits start as low as S$500
- Special rates available for senior citizens
- Early withdrawals may incur penalties
Introduction to Fixed Deposits in Singapore
Want predictable returns without market risks? A fixed deposit is a simple agreement where you lock funds with a bank for a set period. In return, you earn a guaranteed interest rate, often higher than standard savings accounts.
These contracts range from one month to three years. Shorter tenures suit those needing quick access, while longer terms usually offer better deposit rates. Interest can be paid monthly, quarterly, or at maturity—choose what fits your cash flow needs.
In 2021, rates dipped due to COVID-19’s reduced credit demand. Banks adjusted offers, but recovery began in 2022. Here’s how SGD and foreign currency options compare:
| Feature | SGD Fixed Deposits | Foreign Currency FDs |
|---|---|---|
| Available Currencies | SGD only | USD, EUR, AUD, JPY + 4 others |
| Typical Rates (2021) | 0.8%–1.2% | 1.5%–2.5% (higher volatility) |
| Best For | Stability, SDIC insurance | Diversification, stronger currencies |
This tool attracts risk-averse savers, retirees, and those building emergency funds. Your money stays secure, and you know exactly when it’ll grow.
Best Fixed Deposit Rates in Singapore 2021: Top Banks Compared
Exploring top banking options for secure savings growth? Three institutions stand out for their flexible terms and competitive interest rates. Below, we break down key features to help you decide.
Maybank: Tiered Rates for All Ages
Maybank offers yields from 0.1% to 0.6% across 1–36 months. Minimum deposits start at S$1,000, but seniors (55+) enjoy higher deposit rates through Privilege Plus accounts.
Hong Leong Finance: Promotions and Perks
With tenures as short as one week, Hong Leong suits flexible savers. Rates range from 0.3% to 0.65%, and seniors get an extra 0.125% bonus. Watch for prize draws with select promotions.
Standard Chartered: Short-Term Focus
This bank targets 6–8-month commitments, offering 0.05%–0.4% for fresh funds. The S$25,000 minimum suits larger investors.
| Feature | Maybank | Hong Leong | Standard Chartered |
|---|---|---|---|
| Rate Range | 0.1%–0.6% | 0.3%–0.65% | 0.05%–0.4% |
| Minimum Deposit | S$1,000 | S$500 | S$25,000 |
| Best For | Seniors, long-term | Flexibility, bonuses | Short-term, bulk funds |
Pro tip: ICBC accepts deposits as low as S$500, ideal for small savers.
Maybank Fixed Deposit: Rates and Promotions
Need stable returns with minimal hassle? Maybank’s fixed deposit options cater to savers seeking predictability. With tenures from one to 36 months, their deposit rates range from 0.1% for short terms to 0.6% for longer commitments.
Seniors aged 55+ unlock higher yields—up to 0.6%—via Privilege Plus accounts. Here’s how rates break down:
| Tenure | Standard Rate | Privilege Plus (55+) |
|---|---|---|
| 1 month | 0.1% | 0.15% |
| 12 months | 0.3% | 0.4% |
| 36 months | 0.5% | 0.6% |
Foreign currency options (USD, AUD, GBP) were available but offered 0% interest in 2021. Stick to SGD for guaranteed returns.
“Maybank’s auto-renewal feature saves time—your funds reinvest seamlessly unless you opt out.”
Prefer digital convenience? Online placements process instantly, while branch visits allow rate negotiation for larger deposits (S$50k+).
COVID-19 pushed rates below historical averages, but Maybank’s 2021 offers still outpaced competitors. Compare fixed deposits to maximize your earnings.
Hong Leong Finance: Competitive Rates for Long Tenures
How does Hong Leong Finance stand out for extended tenures? With yields up to 2.33% for 30-month commitments in 2022, it’s a strong choice for savers eyeing gradual growth. Their 13+ month tenures unlock bonus higher interest, while digital account openings streamline the process.
Deposit size matters here. Place S$50,000 or more to access top-tier rates, while smaller amounts start at 0.65%. Unlike traditional banks, Leong Finance operates as a non-bank entity—meaning deposits aren’t SDIC-insured. Weigh this against their aggressive promotions.
| Tenure (Months) | 2021 Rate | 2022 Rate |
|---|---|---|
| 12 | 0.65% | 1.8% |
| 30 | N/A | 2.33% |
“Hong Leong’s digital perks—like e-vouchers for online placements—make locking in long tenures hassle-free.”
Early withdrawals? You’ll forfeit accrued interest. But with months-long tenures offering stable returns, patience pays off. Compare options carefully before committing.
Standard Chartered’s Fixed Deposit Options
Considering short-term savings with flexible options? Standard Chartered specializes in 6–8 month tenures, offering a 2021 promotional rate of 0.4% for S$25k+ deposits. Unlike banks with 3-year locks, this suits those needing quicker access to funds.
Foreign currency placements start at S$5k equivalents, maxing at 0.25% for USD or EUR. These cater to diversifiers but lack SDIC coverage. Compare 2021 and 2022 rates below:
| Tenure | 2021 Rate | 2022 Rate |
|---|---|---|
| 8 months | 0.4% | 0.8% |
| USD 12 months | 0.25% | 0.6% |
Priority Banking clients unlock waived fees and personalized promotions. Deposits above S$200k may qualify for negotiated rates—always ask your relationship manager.
“Standard Chartered’s tiered benefits make larger amounts work harder, especially for expats holding multiple currencies.”
While 2021 rates were subdued, 2022’s rebound highlights the bank’s appeal for short-term, high-value savers.
CIMB and Bank of China: Hidden Gems for Savers
Searching for lesser-known but rewarding savings options? CIMB and Bank of China offer niche interest opportunities often overlooked. Both cater to diverse needs, from Shariah-compliant plans to multi-currency flexibility.
CIMB’s standout feature is its Islamic fixed deposit, adhering to Shariah principles. New customers enjoy 0.5%–0.75% for a minimum deposit of S$1,000. Tenures range from 1 to 12 months, ideal for short-to-mid-term goals.
Bank of China appeals to global savers. Their USD and GBP options yield 0.35%, outperforming SGD rates (0.23%–0.75%). Note the higher S$5,000 minimum deposit and forex risks—no SDIC coverage for foreign currencies.
| Feature | CIMB | Bank of China |
|---|---|---|
| Rate Range | 0.5%–0.75% | 0.23%–0.75% |
| Minimum Deposit | S$1,000 | S$5,000 |
| Best For | Ethical savings | Currency diversification |
“Bank of China’s AUD/NZD options suit expats earning in these currencies—bypass conversion fees.”
Fresh funds often secure better interest at both banks. Existing customers may see lower yields, so compare promotions before committing. For long tenures (12+ months), lock in rates before potential dips.
Fixed Deposits vs. Singapore Savings Bonds (SSB)
Deciding between secure investment options? Both fixed deposits and Singapore Savings Bonds (SSB) offer low-risk growth, but their structures differ significantly. Here’s how they stack up in 2021.
SSBs allow withdrawals with just one month’s notice—no penalties. FDs, however, charge fees for early access. Need flexibility? SSBs win. Prefer locked-in *returns*? FDs guarantee fixed rates.
| Feature | Fixed Deposits | SSB |
|---|---|---|
| Average 2021 Yield | 0.75% | 0.35% |
| Minimum Deposit | S$1,000 | S$500 |
| Liquidity | Penalties apply | 1-month redemption |
“SSB’s *step-up rates* reward longer holdings—ideal for patient savers. FDs suit those needing predictable cash flow.”
Safety varies too. FDs are SDIC-insured (up to S$100k), while SSBs are backed by the Singapore government. For *savings* under S$500, SSBs are the only option.
Choose SSBs for emergency funds or short-term goals. Opt for FDs if you can lock funds for higher *returns*. Both *accounts* serve different needs—align them with your timeline.
How Fixed Deposits Stack Up Against High-Interest Savings Accounts
Wondering where to park your cash for better earnings? Savings accounts and fixed deposits serve different needs. While FDs offer locked-in interest rates, savings accounts provide flexibility with variable yields.
In 2021, UOB One’s savings account offered up to 3.30%, dwarfing the 0.75% FD cap. But these higher interest rates come with strings attached—like maintaining a S$50,000 balance or completing monthly transactions.
| Feature | Fixed Deposits | High-Interest Savings |
|---|---|---|
| Rate Stability | Guaranteed | Variable (bonus-driven) |
| Minimum Amount | S$1,000 | S$500–S$50,000 |
| Liquidity | Penalties apply | Instant access |
DBS/POSB’s 7.68% promo accounts are tempting but require credit card spending. For steady growth, combine both tools—park emergency funds in savings accounts and lock surplus amounts in FDs.
“Hybrid strategies balance liquidity and returns. Use savings accounts for short-term goals and FDs for predictable long-term growth.”
Prefer hassle-free earnings? FDs win. Willing to jump through hoops for bonuses? Savings accounts might suit you better.
Foreign Currency Fixed Deposits: Are They Worth It?
Curious about diversifying your savings across currencies? Foreign currency FDs promise higher interest but come with unique risks. Let’s break down key considerations before converting your money.
In 2021, USD options averaged 0.35% versus SGD’s 0.75%. The gap narrows when accounting for forex swings—a strong USD that year boosted returns by 3.2% for holders.
| Currency | Rate (2021) | Forex Risk |
|---|---|---|
| USD | 0.35% | High |
| AUD | 0.28% | Moderate |
| GBP | 0.25% | High |
Watch for hidden costs. Dual currency FDs may auto-convert funds at maturity—often at unfavorable rates. Always check the bank’s conversion terms.
“Currency FDs work best for those earning in foreign currencies. Converting SGD to USD just for slightly higher interest rarely pays off after fees.”
Key risks to know:
- No SDIC protection for non-SGD deposits
- Exchange rate losses can erase interest gains
- Early withdrawal fees up to 1.5% of principal
Hedging strategy: Pair currency FDs with offsetting forex positions. For example, if holding USD FDs, consider SGD investments to balance exposure.
Bottom line? These work best for expats or those with existing foreign money. Most Singaporeans fare better with SGD options.
Tips to Maximize Your Fixed Deposit Returns
Want to make your money work smarter, not harder? Smart savers use strategies like laddering to balance liquidity and earnings. Split your funds across 3-, 6-, and 12-month tenures. This way, you’ll access cash periodically while earning higher yields on longer terms.
Negotiate better deals with bulk placements. Banks often offer premium options for deposits above S$50k. For S$100k+, you might unlock exclusive rates—always ask.
Loyalty pays off. Priority banking customers get perks like waived fees or personalized rates. Maintain relationships to access these hidden benefits.
“Set rate alerts with tools like MAS’ comparator. Banks rarely notify you when better promotions drop.”
Avoid common traps:
- Auto-renewals may lock you into lower rates—mark maturity dates.
- Promo rates often require fresh funds. Read terms carefully.
With these tactics, you’ll turn a best fixed strategy into steady growth. Start small, stay informed, and watch your savings climb.
Conclusion
Planning your next financial move? In 2021, conservative yields dominated the landscape, with *interest* hovering below 1% for most tenures. Top performers like BOC and CIMB offered niche perks, while Maybank catered to seniors with tailored rates.
Looking ahead, 2022’s projected rate hikes may revive earnings. Diversify by splitting funds across short and long-term commitments—this balances liquidity and growth.
Final checklist:
- Compare tenures and penalties
- Negotiate for bulk deposits
- Monitor promotions for fresh funds
With the right strategy, even low-risk tools can deliver steady returns over *time*.
