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Guide to best fixed deposit rate in Singapore [June 2023]

01 Jun 2023

Get the latest information on the highest fixed deposit rates in Singapore with this comprehensive guide. Stay ahead of the game and secure your savings today!
Best fixed deposit interest rate Singapore

TL;DR

  • Banks in Singapore continue to lower their interest rates on fixed deposit accounts in June 2023.
  • For example, OCBC has brought down its 6-month fixed deposit rate from 3.20% p.a. to 3.00% p.a. It has also temporarily halted its CPF fixed deposit offering.  
  • The best 12-month fixed deposit rate we found was 3.55% p.a. offered by RHB and Maybank, and the best 3-month fixed deposit rate we found was 3.55% p.a. offered by ICBC.
  • The best 6-month fixed deposit rate we found was 3.55% p.a., which is below the cut-off yield of the latest 6-month T-bill auction. 

The Telegram community has shown keen interest in a few instruments instruments – fixed deposit accounts, regular deposit accounts, T-Bill and Singapore Savings Bond (SSB).

If you are struggling to choose where to park your money, then you should continue to read on.

I will share with you my strategy and thoughts. (it’s free to read on so why not!)

The best fixed deposit rate in Singapore (June 2023) 

Let’s start by talking a little more about fixed deposits. 

Fixed deposits earn you a guaranteed amount of interest for the money you put in over a specific period of time. 

Typically, you will lock in a sum of money (usually a minimum of $10,000) and the bank will pay you interest after a fixed period. 

The downside to a fixed deposit is that you will have to pay a penalty fee if you want withdraw your money early.

What many people have been talking about recently are the mouth-watering interest rates for fixed deposits. 

However, what we noticed for the latest fixed deposit rate in Singapore for June 2023 is that some banks have continued to lower their interest rates.

For example, OCBC has brought down its 6-month fixed deposit rate to from 3.20% p.a. to 3.00% p.a. OCBC has also temporarily halted its CPF fixed deposit offering.  

  • The best 12-month fixed deposit rate we found was 3.55% p.a. offered by RHB/Maybank. 
  • The best 6-month fixed deposit rate we found was 3.55% p.a. offered by RHB.
  • The best 3-month fixed deposit rate we found was 3.55% p.a. offered by ICBC.
  • Amongst the local banks, DBS is offering a fixed deposit interest rate of 3.20% p.a. for 12-month fixed deposit, with a maximum deposit amount of S$19,999.

While Maybank has a headline 3.90% interest rate for a 12-month fixed deposit, it comes with additional requirements of deposits into their current or savings accounts which comes with a lower interest rate. This would lower the effective interest rate to about 3.55% p.a. for a 12-month deposit. 

As an incentive for you to read this article, I’ve compiled a list of the fixed deposit interest rates offered by banks in Singapore.  

BankInterest rate per annum TenureMinimum amount
RHB3.55% (mobile placement)6/12 monthsS$20,000
Maybank3.55% (deposit bundle promotion)12 monthsS$22,000
ICBC3.55% (mobile placement)3 monthsS$500
 3.40% (mobile placement)6/9/12 monthsS$500
Bank of China3.50% (mobile placement)3 monthsS$5,000
 3.45% (mobile placement)6 monthsS$5,000
 3.40% (mobile placement)9 monthsS$5,000
 3.35% (mobile placement)12 monthsS$5,000
HSBC3.50%3 monthsS$30,000
 3.40%6 monthsS$30,000
 3.30%12 monthsS$30,000
SBI3.50%12 monthsS$50,000
HL Bank3.50%3/6 monthsS$100,000
Citibank3.48%6 monthsS$250,000
CIMB3.35%9 monthsS$10,000
Hong Leong Finance3.20%5 monthsS$50,000
 3.15%10 monthsS$50,000
DBS/POSB3.20%12 monthsS$1,000 (max S$19,999)
Standard Chartered3.20%6 monthsS$25,000
UOB3.10%6/10 monthsS$10,000
OCBC3.00%6 monthsS$30,000
Source: Various bank websites as of 1 June 2023

To compare the best fixed deposit rate and the best interest rates on savings accounts, use our Cash Optimiser Tool. 

Join the Beansprout Telegram group to get the latest updates on the best fixed deposit rates.

How do fixed deposit rates compare to Singapore treasury bill (T-bill) and Singapore Savings Bonds?

Beansprout has written enough on the Singapore treasury bill and the Singapore Savings Bond, so I will not be going into too much detail on them. 

The yield for the most recent 6-month Singapore T-bill auction was 3.85%, higher than the best 6-month fixed deposit rate offered by banks.

The yield for the most recent 1-year Singapore T-bill auction was 3.58%, close to the best 12-month fixed deposit rate offered by the banks.

The 1-year return on the most recent issuance of the Singapore Savings Bonds (SSB) is 2.76%, lower than than the best 12-month fixed deposit rate offered by the banks.

What is also important to note is that fixed deposits are covered under the Deposit Insurance Scheme.

This means that in the event that the bank faces problems repaying your money, all your insured deposits will be insured up to S$75,000 by the Singapore Deposit Insurance Corporation Limited (SDIC).

The Singapore T-bill and SSB are backed by the Singapore Government, but this does not make them entirely risk free. 

For example, you may lose part of your capital if you decide to sell your T-bill before six months. In this case, it might not just be the interest rates you are losing out on! 

Also, the interest rate in the recent T-bill auctions has been falling, and there is no guarantee that it will remain at current levels.

Let me try to summarize my thoughts in the table below –

 What I likeWhat I do not like
Singapore 6-month T- bill
  • Principal sum is locked up for 6 months only
  • Low risk of default
  • Minimum investment of S$1000
  • May not be liquid in the secondary market
Singapore Savings Bond
  • Step-up interest rate of up to 10 years
  • Redeemable at any point but have to wait for up to a month for payment
  • Low risk of default
  • Minimum investment of S$500
  • 1-year return is lower than both Singapore T-bill and Fixed Deposits
Fixed Deposits
  • More attractive interest rates currently
  • Low risk of default
  • Principal sum is locked up for at least 6-12 months
  • Potential penalty for early withdrawal
  • Usually higher deposit amount 

How do fixed deposit accounts compare to best savings accounts in Singapore?

As seen from the Telegram group, many people are also interested in the best savings accounts apart from fixed deposit accounts. 

However, do note that the interest rates offered by savings accounts are subject to change, and you are not able to ‘lock-in’ the interest rates like for fixed deposits.

The highest maximum effective interest rate offered by savings accounts currently is 7.88%, above the best fixed deposit rate.  

You can compare the best fixed deposit rate and the best interest rates on savings accounts using our Cash Optimiser Tool.

How do fixed deposit rates compare to best foreign currency fixed deposit rates in Singapore?

Some of you may have noticed that foreign currency fixed deposit accounts are now offering a higher interest rate compared to Singapore dollar fixed deposit accounts.  

This is because banks in Singapore have raised their foreign currency fixed deposit rates in with higher US interest rates.

The best 6-month US Dollar fixed deposit rate we found was 5.04% p.a. offered by UOB, for a minimum deposit of US$50,000. The best 12-month US Dollar fixed deposit rate we found was 4.92% p.a. offered by UOB, for a minimum deposit of US$50,000.

While USD fixed deposit rates are higher compared to Singapore dollar fixed deposit rates, you should beware of foreign currency risk. Also, foreign currency fixed deposits are not covered by the Singapore Deposit Insurance Scheme.

Final thoughts on fixed deposit

After many months of competing for the highest fixed deposit rate in Singapore, it is worthwhile to note that some have now started to lower their interest rates once again.

It will be interesting to see whether other banks will follow suit in bringing down the interest rates on fixed deposit accounts in the next few months.

As usual, you can get updates on the best fixed deposit rates on Beansprout's Telegram group.

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