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 0.50% to 1.00% 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. The current Money Lobang National Average Fixed Deposit Rates is currently at 0.47% p.a.
Foreign Banks and Finance Companies vs
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 vs Current or Savings
Fixed term deposits usually offer a much higher interest (about 0.50% to 1.00% 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.
The Highest Fixed Term Deposit Rate
HSBC Fixed Deposit leads the pack with the highest fixed deposit interest rate of 1.10% interest per annum for funds of $5,000 and above and capped at $49,999 for a tenure of 24 months. This is followed by Maybank Fixed Deposit which offers a fixed deposit interest rate of 1.00% interest per annum for tenure of 36 months and minimum deposit of $25,000 and above
DBS Fixed Deposit offers the highest local bank fixed term deposit rate at 1.30% interest per annum on funds of $1,000 and above capped at $19,999 for a tenure of 18 months. This rate is only applicable to rollover placements of the same tenure. Depositors who do not have existing fixed deposits placements that can be rolled over will have to settle for less with a 0.60% interest per annum on funds of $1,000 and above capped at $19,999 for a tenure of 8 months. Comparatively, UOB Fixed Deposit offers 0.50% interest per annum for tenure of 10 months and funds of $20,000 and above for all depositors.
Depositors who do not mind depositing at finance companies will be able to get 0.75% interest per annum with a tenure of 36 months for deposits above $30,000 with Sing Investments Fixed Deposit. Comparatively, Hong Leong Finance Fixed Deposit will pay 0.65% interest per annum but with a tenure of 24 months for deposits above $20,000. 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.
The Highest Current or Savings Deposits
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.
Bank of China Account holders can enroll in Bank of China SmartSaver Plan to receive up to 2.95% interest per annum up to $80,000 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.
OCBC 360 Account offers up to 2.68% interest per annum up to $75,000 deposit when depositors credit their salary, insure, invest with OCBC and increase balance by at least $500 from previous month.
DBS Multiplier Account offers interest rate of up to 2.50% interest per annum with no minimum monthly salary credit or credit card spend. Account holders earn interest based on monthly transaction amount for the account. Transactions from salary crediting, credit card spending, home loan installments, insurance premiums and investments can be used up to calculate the monthly transaction amount.
Standard Chartered Bonus$aver Current Account offers up to 2.60% interest per annum up to $80,000 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.
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.
UOB One Account rewards depositors with up to 1.25% 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 and deposit their salary in the account to obtan the stated interest rate on their deposits.
The RHB High Yield Savings Plus Account is a no-frills savings account which offers up to 0.875% p.a. with $100,000 deposit and no fall below fees. It is the basic savings account with the highest interest rate in Singapore today and can provide higher interest rates and yet liquidity if you need it.
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.