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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 per
annum from fixed deposit promotions as compared to the 0.05% to
0.15% interest per annum 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 per annum) 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.
The Highest Fixed Term Deposit Rate
Bank
of East Asia Fixed Deposit offers
the highest fixed term deposit rate for banks with a 1.95%
interest per annum for tenure of 12 months and funds of $100,000
and above. Similarly, ICBC
Fixed Deposit offers an interest rate of 1.95%
p.a. with a tenure of 12 months but for funds of $200,000 and above
for placement via e-banking. Another alternative is the CIMB
Why Wait Fixed Deposit which offers
a no frills fixed deposit interest rate of 1.90%
per annum for tenure of 12 months for online placements of $10,000
and above.
UOB Fixed Deposit
offers the highest local bank fixed term deposit rate with a 1.65%
interest per annum for tenure of 10 months and funds of
$20,000 and above. Comparatively, OCBC
Fixed Deposit also offers 1.65% interest per
annum on fresh funds above $20,000 but for a different tenure of
12 months.
Depositors who do not mind depositing at finance companies will
be able to get 1.90% interest per annum with a
tenure of 15 months for deposits above $200,000 at Hong
Leong Finance. Comparatively, Sing
Investments and Finance Fixed Deposit will pay 1.85%
interest per annum with a tenure of 24 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 $50,000.
Check out our other Fixed
Time Deposit for other bank offers or Highest
Fixed Deposit Interest Rates Promotion in Singapore for a more
detailed comparison and review on the highest fixed deposit accounts
in Singapore.
The Highest Current or Savings Deposits
Standard
Chartered Bonus$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
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.
DBS Multiplier Account
offers interest rate of up to 3.50% interest per
annum with no minimum monthly salary credit or credit card spend.
Account holders earn interest based on monthly transaction amount
for the account. Transactions from salary crediting, credit card
spending, home loan installments, insurance premiums and investments
can be used up to calculate the monthly transaction amount.
OCBC 360 Account offers
up to 3.45% interest per annum up to $70,000 deposit
when depositors credit their salary, insure or invest with OCBC,
increase balance by at least $500 from previous month 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 2.44% interest per annum
on up to $75,000 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 2.41%
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 Interest Rates Promotion in Singapore for a
more detailed comparison and review on the different deposit accounts
in Singapore.
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Reviews or Comments (4)
Maybank seems to offer a good deal for their fixed deposits as compared to local banks and finance companies.
Cimb
Why is Convert not on the list?
We have highlighted some of the deposits with higher deposit rates on this page while most of the deposits for major banks can be found on http://www.moneylobang.com/best-deposit-rates.php. Please feel free to suggest any other deposit that offers a higher rate for depositors in Singapore.