Savings
Guide to best fixed deposit rate in Singapore [March 2023]
01 Mar 2023
TL;DR
- Banks in Singapore continue to lower their interest rates on fixed deposit accounts in March 2023.
- For example, OCBC has taken down its 8-month fixed deposit promo rate of 4.08% p.a., and is currently offering 3.55% p.a. for a 5-month fixed deposit.
- The best 1-year and 6-month fixed deposit rates we found was 4.00% p.a. offered by HL Bank.
- The best fixed deposit rate is now slightly higher than the yield on the 6-month T-bill.
[Updated on 23 March 2023 to reflect latest rates by HSBC]
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 (March 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 March 2023 is that some banks have started to lower their interest rates.
For example, OCBC has ended its 8-month promo rate of 4.08% p.a., and is currently offering 3.55% p.a. for a 5-month deposit. HSBC has also lowered its fixed deposit interest rate to 3.90% p.a. for a 7-month deposit from 4.00% previously.
HL Bank has a fixed deposit rate of 4.0% p.a. for 6 and 12 months, but it will require a minimum deposit of S$100,000. SBI also has a fixed deposit rate of 4.0% for 12 months with a minimum deposit of S$50,000.
If you are looking for a fixed deposit account with a even lower minimum deposit, RHB, HL Bank and HSBC are currently offering 3.90% p.a. across various tenures.
Amongst the local banks, UOB and OCBC are both offering a fixed deposit interest rate of 3.55% p.a. across various tenures.
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.
| Bank | Interest rate per annum | Tenure | Minimum amount |
| HL Bank | 4.00% | 12 months | S$100,000 |
4.00% | 6 months | S$100,000 | |
| 3.40% | 3 months | S$100,000 | |
| SBI | 4.00% | 12 months | S$50,000 |
| HSBC | 3.90% | 7 months | S$30,000 |
| 3.80% | 12 months | S$30,000 | |
3.80% | 3 months | S$30,000 | |
| RHB | 3.90% (mobile placement) | 12 months | S$20,000 |
3.90% (mobile placement) | 24 months | S$20,000 | |
| Maybank | 3.90% | 12 months | S$20,000 |
| 3.80% | 15 months | S$20,000 | |
| 3.50% | 3 months | S$20,000 | |
| Bank of China | 3.85% (mobile placement) | 12 months
| S$50,000 |
| 3.80% (mobile placement) | 12 months | S$5,000 | |
| ICBC | 3.75% (mobile placement) | 12 months | S$500 |
| Hong Leong Finance | 3.60% | 10 months | S$20,000 |
| CIMB | 3.55% | 6 months | S$10,000 |
| OCBC | 3.55% | 5 months | S$20,000 |
| UOB | 3.55% | 6/10 months | S$10,000 |
| DBS/POSB | 3.20% | 12 months | S$10,000 |
| Standard Chartered | 1.35% | 12 months | S$25,000 |
| Citibank | 0.10% | 12 months | S$50,000 |
Source: Various bank websites as of 23 March 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 3.65%, lower than the best fixed deposit rate offered by banks.
The interest rate for the most recent 1-year Singapore T-bill auction was 3.87%, also similar to the best 12 month fixed deposit rate.
The latest issuance of Singapore Saving Bond offers an interest rate of 3.01% for 12 months. This is lower than the best 12-month fixed deposit rate.
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 like | What I do not like | |
| Singapore 6-month T- bill |
|
|
| Singapore Savings Bond |
|
|
| Fixed Deposits |
|
|
How do fixed deposit accounts compare to normal deposit accounts?
As seen from the Telegram group, many people are also interested in savings accounts apart from fixed deposit 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.!
Also, UOB Stash just raised its interest rate to up to 5% p.a., with very few requirements to earn a higher rate unlike the UOB One Account.
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.