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

01 Feb 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 have started to lower their interest rates on fixed deposit accounts in February 2023, following the fall in yields in recent T-bill auctions.
  • For example, CIMB's 6-month fixed deposit interest rate has been brought down to 3.65% from 3.95% in January. Likewise, the 12-month fixed deposit rate at CIMB has fallen to 3.45% from 4.15% previously. 
  • The best 1-year and 6-month fixed deposit rates we found was 4.00% p.a. offered by HL Bank. The best 24-month fixed deposit rate was 4.1% offered by RHB. OCBC is offering a 8-month fixed deposit rate of 4.08%. 
  • The best fixed deposit rate is still slightly above the yield on the T-bill and Singapore Savings Bonds (SSBs).

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 (February 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 February 2023 is that some banks have started to lower their interest rates.

For example, CIMB's fixed deposit interest rate has been brought down to 3.65% from 3.95% in January. Likewise, the 12-month fixed deposit rate at CIMB has fallen to 3.45% from 4.15% previously. 

The good news is that you will still be able to find a few banks in Singapore offering fixed deposit rates that are close to or above 4%.

For example, RHB has a fixed deposit rate offering 4.1% for mobile placement of 24 months, with a mimimum deposit of S$20,000.

OCBC has a fixed deposit rate of 4.08% for 8 months, with a minimum deposit of S$20,000. 

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 (As of 1st Feb)TenureMinimum amount
RHB

4.1% (Mobile placement)

24 monthsS$20,000
 3.90%12 monthsS$20,000
OCBC

4.08%

8 monthsS$20,000
HL Bank4.00%12 monthsS$100,000
 4.00%6 monthsS$100,000
 3.40%3 monthsS$100,000
Bank of China

4.00% (mobile placement) 

12 monthsS$5,000
 3.90%12 monthsS$5,000
Maybank3.80%24 monthsS$20,000
 3.90%12 monthsS$20,000
 3.50%6 monthsS$20,000
ICBC3.70%12 monthsS$20,000
Hong Leong Finance3.60%10 monthsS$20,000
UOB3.55%12 monthsS$10,000
CIMB3.45%12 monthsS$10,000
 3.65%6 monthsS$10,000
HSBC3.20%12 monthsS$30,000
 4.00%7 monthsS$30,000
DBS/POSB3.20%12 monthsS$10,000
Standard Chartered1.35%12 monthsS$25,000
Citibank0.10%12 monthsS$50,000

Source: Various bank websites as of 1 February 2023

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 interest rate for the most recent 6-month Singapore T-bill auction was 4.0%, similar to the best fixed deposit rate offered by banks.

The interest rate for the most recent 1-year Singapore T-bill auction was 3.87%, close to the best 12 month fixed deposit rate of about 4%.

The latest issuance of Singapore Saving Bond (SBMAR23 GX23030A) offers an interest rate of 2.76% for 12 months. This is lower than the best 12-month fixed deposit rate of 4%.

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 of 2.76% 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
  • Need to pay penalty fees for early withdrawal, and this could be 1%. 
  • Usually higher deposit amount of at least S$20,000

How do fixed deposit accounts compare to normal deposit accounts?

As seen from the Telegram group, there is a trend where various banks are increasing interest in their flagship savings accounts. 

The one that stood out to me was the most updated UOB One Account interest rate, where you can earn up to a whopping 7.8% p.a.! 

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.

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.

A caveat – your strategy may differ if your plan is different from mine. That is ok and I am not here to convince you otherwise! (this is not financial advice!)

Be sure to stay tuned because I will be here to share my strategy. 

As usual, you can catch me on the Telegram group channel

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