Last updated on 2023-04-01
1. Why are Deposit Interest Rates so Low?
2. Which Bank is Best for Savings in Singapore?
3. What is the Difference Between Fixed Deposits and Savings Account and Current Account?
4. Which Bank Offers Highest FD Rate in Singapore?
5. Which is the Best High Yield Savings Account in Singapore?
Singapore deposits earn very low interest from banks due to our strong fiscal and stable monetary policies and it has been consistently lower than 2.00% per annum since 2002. Interest rates have bottomed out in 2021 and have soared to record highs in the past year. Depositors can enjoy the best fixed deposit rates in more than 15 years as they can enjoy rates of up to 4.10% interest per annum as compared to the 0.05% to 0.15% interest per annum you get from the basic savings deposit account. The current Money Lobang National Average Fixed Deposit Rates for April 2023 is 3.06% p.a.
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 $75,000. Click here for more information about the Deposit Insurance Scheme.
Fixed term deposits usually offer a much higher interest (about 2.00% to 3.50% 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 sum 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.
HL Bank leads the pack with the highest fixed deposit with an interest rate of 3.95% interest per annum for funds of $500,000 and above for a tenure of 6 or 12 months. Comparatively, RHB offers a fixed deposit interest rate of 3.90% interest per annum for tenure of 12 or 24 months and minimum deposit of $20,000 and above for online placements only.
UOB offers a fixed term deposit rate at 3.55% interest per annum for tenure of 6 or 10 months and funds of $10,000 and above. Comparatively, OCBC Fixed Deposit offers 3.50% interest per annum for funds of $20,000 and above for a tenure of 6 months for online fixed deposit placement.
Depositors who do not mind depositing at finance companies will be able to get 3.85% interest per annum with a tenure of 12 months for deposits above $20,000 with Sing Investments and Finance. Comparatively, Hong Leong Finance will pay 3.80% interest per annum for tenure of 12 months for deposits above $500,000. 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 $75,000.
Check out our other Fixed Time Deposit for other bank offers or Highest Fixed Deposit Interest Rates Promotion in Singapore for a more detailed comparison and review on the highest fixed deposit accounts in Singapore.
Standard Chartered Bonus$aver Current Account offers up to 7.88% interest per annum up to $100,000 deposit when depositors credit their salary, insure, invest, pay any 3 bills and spend at least $2,000 or $500 on their linked Bonus$aver World MasterCard Credit Card or Debit Card.
OCBC 360 Account offers up to a whopping 7.65% interest per annum up to $100,000 deposit when depositors credit their salary, insure, invest with OCBC, spend at least $500 on selected OCBC Credit Cards and increase balance by at least $500 from previous month.
Bank of China Account holders can enroll in Bank of China SmartSaver Plan to receive up to 7.00% interest per annum up to $100,000 deposit when they their salary, pay any 3 bills or 1 mortgage, purchase wealth products and spend at least $500 on Bank of China Credit Cards.
UOB One Account rewards depositors with up to 5.00% interest per annum on up to $100,000 deposit. Depositors are required to spend a minimum of $500 monthly on selected UOB Credit Cards and deposit their salary in the account to obtan the stated interest rate on their deposits.
DBS Multiplier Account offers interest rate of up to 4.10% 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.
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 a high 3.55% interest per annum on monthly savings over a period of 2 years.
CIMB StarSaver Account is a no-frills savings account that offers up to 3.50% p.a. for all deposit above $250,000. The account also offers 1.50% p.a. and 2.50% p.a. for first $100,000 in deposits and next $250,000. There is no requirements to earn the stated interest.
The Sing Investments GoSavers Account is another excellent basic savings account which offers 3.50% p.a. for all deposits above $250,000, 2.50% p.a. for first $100,000 deposit and 3.00% p.a. for next $150,000 deposit. It is a no-frills savings account with higher interest rates and yet liquidity if you need it. This account is useful for depositors who want to keep a large amount of liquid cash on hand and yet earn a decent interest on them.
UOB Stash Account is a tiered savings account that offers up to 3.005% p.a. effective interest rate for $100,000 deposit. However, depositors are required to increase or maintain monthly average balance compared to previous to score the bonus interest. There is also a minimum $10,000 deposit balance to earn bonus interest.
Maybank SaveUp Account awards depositors with up to 2.99% 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.
Bank of China SuperSaver Account is a tiered saving accounts that offers an effective interest rate of 2.62% p.a. for first $100,000 in deposits. The account also offers 1.20% p.a. for deposits above $100,000.
Similarly, the CIMB FastSaver Account offers an effective interest rate of 2.50% p.a. for first $75,000 in deposits. The account also offers 0.80% p.a. for deposits above $75,000. There are no monthly fees or multiple conditions to fulfill and is an excellent no-frills account.
Stan Chart JumpStart Account also offers up to 2.50% p.a. for depositors on up to $20,000 deposit with depositors only needing to be 1 investment trade a month with Standard Chartered Bank to obtain the additional 0.50%p.a. bonus interest. However, it is only avaliable for young adults below 26 years old.
The newly launched Trust Bank Savings Account by the new digital bank Trust Bank offers a competitive interest rate of 2.50% / 2.00% p.a. for the first $75,000 in deposits for NTUC members / non-NTUC members. Depositors are required to make 5 transactions in a month on Trust Bank Link Card in order to earn the stated interest rate.
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.