What is the Best Highest Interest Rate in Singapore

 

What is the Best Highest Interest Rate in Singapore

Low Interest Returns on Deposits

Singapore deposits earn very low interest from banks and it has been consistently lower than 2.00% per annum since 2002. However, it is still better to get the paltry 1.00% to 2.00% interest as compared to the 0.05% to 0.15% interest you get from the basic savings deposit account.

Foreign Banks and Finance Companies vs Local Banks

Foreign banks and finance companies generally offer better interest rates for deposits as compared to our three local banks (DBS, UOB and OCBC). Even though that is so, local banks offer greater accessibility with their large number of branches island-wide. It is interesting to note that several foreign banks such as Standard Chartered, Bank of China, Maybank and Citibank have managed to narrow this gap and are already operating many branches in the heartlands. There is not much difference where your money is placed in terms of security as the Singapore Deposit Insurance Corporation insure all your deposits in any individual bank or finance company operating in Singapore for a sum of up to $50,000. Click here for more information about the Deposit Insurance Scheme.

Fixed Term Deposits vs Current or Savings Deposits

Fixed term deposits usually offer a much higher interest (about 1.00% to 1.50% difference) as compared to the interest rate you get from your average current or savings deposit accounts. The catch is that you are penalised if you were to withdraw your money before the deposit reaches your fixed term maturity date. The penalty differs between banks but it is usually a portion of interest that you could have got if you had let the fixed deposit reach maturity.

Some current or savings accounts offer attractive interest rates that could be higher than a fixed term deposit interest rate. However, it is important to note these accounts usually require the depositor to fulfill certain conditions to attain the higher interest rate for a specific period. The conditions could be in the form of spending on credit cards or saving a certain amount of money. The conditions and interest rates can be changed anytime by the Bank. Comparatively, fixed term deposit interest rates are set in stone from the moment you deposit your money in it.

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The Highest Fixed Term Deposit Rate

Maybank Fixed Deposit offers an interesting time deposit and deposit account bundle which allows depositors to earn 1.40% interest per annum with a tenure of 18 months for funds of $50,000 and above. However, depositors must place a minimum $5,000 deposit into a designated Maybank savings account to qualify for this promotion.

Bank of China Fixed Deposit offers the next highest fixed term deposit rate of 1.30% interest per annum with a tenure of 6 + 6 months for funds of $200,000 and above. Similarly, ICBC Fixed Deposit offers a fixed term deposit rate of 1.30% interest per annum with a tenure of 12 months but for funds of $200,000 and above.

UOB Fixed Deposit offers the highest local bank fixed term deposit rate with a 1.10% interest per annum for fresh funds above $20,000. This promotional offer has a tenure of 10 months. Similarly, OCBC Fixed Deposit also offers 1.00% interest per annum on fresh funds above $20,000 for a different tenure of 12 months.

Depositors who do not mind depositing at finance companies will be able to get 1.35% interest per annum with a tenure of 15 months for deposits above $200,000 at Hong Leong Finance Fixed Deposit. Similarly, Sing Investments and Finance Fixed Deposit will pay 1.23% interest per annum with a tenure of 13 months for deposits above $50,000. Deposits in any individual bank or finance company operating in Singapore will be insured by the Singapore Deposit Insurance Corporation for a sum of up to $50,000.

Check out our other Fixed Time Deposit for other bank offers.

The Highest Current or Savings Deposits

Standard Chartered Bonus$aver Current Account offers up to 3.88% interest per annum up to $100,000 deposit when depositors credit their salary, insure or invest with Standard Chartered Bank, pay any 3 bills and spend at least $2,000 or $500 on their linked Bonus$aver World MasterCard Credit Card or Debit Card.

Bank of China Multi Currency Savings Account holders can enroll in Bank of China SmartSaver Plan to receive up to 3.55% interest per annum up to $60,000 deposit when they their salary, pay any 3 bills or 1 mortgage and spend at least $500 on Bank of China Credit Cards.

OCBC 360 Account offers up to 3.05% interest per annum up to $70,000 deposit when depositors credit their salary, insure or invest with OCBC, pay any 3 bills and spend at least $500 on their OCBC Credit Cards every month.

Maybank SaveUp Account awards depositors with up to 3.00% interest per annum on up to $50,000 deposit when they take up up to 3 financial products from Maybank. This account offers greater flexibility as compared to the other accounts as depositors can choose from a wide range of financial products and are not restricted to only a few.

UOB One Account rewards depositors with up to 2.43% interest per annum on up to $50,000 deposit. Depositors are required to spend a minimum of $500 monthly on the UOB One Card and Credit Salary / make 3 GIRO debit transactions to obtan the stated interest rate on their deposits.

Mortgagees looking to hedge their property loan can consider Citibank MaxiGain Savings Account which has a base interest rate that is pegged to 80% of 1 month SIBOR and allows current depositors to earn up to 2.00% interest rate per annum.

Depositors looking to save a portion of their salary every month and yet get rewarded for higher interest can consider the POSB SAYE Savings Account which award depositors with 2.05% interest per annum on monthly savings over a period of 2 years.

Check out our other Current or Savings Deposit for other bank offers or Best Savings Account or Current Account in Singapore for a more detailed comparison and review on the different deposit accounts in SIngapore.

 

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