In 2024, fixed deposits (FDs) remain one of the most secure and reliable investment options for Singaporeans looking to grow their savings with minimal risk. Despite the evolving economic landscape, fixed deposits continue to offer predictable returns and peace of mind, making them a favored choice for conservative investors. Here’s a comprehensive guide to the best fixed deposit rates in Singapore for June 2024, helping you to maximise your savings.
1. Understanding Fixed Deposits
A fixed deposit is a financial instrument provided by banks and financial institutions, where you deposit a lump sum of money for a predetermined period at a fixed interest rate. The principal amount and interest are paid out at the end of the term, offering a safe investment with guaranteed returns as insured depositors will be compensated up to a maximum of S$100,000 under the Deposit Insurance (DI) Scheme by the Singapore Deposit Insurance Corporation (SDIC). The interest rates on fixed deposits can vary based on the tenure, the amount deposited and ongoing promotions by the banks.
2. Key Factors to Consider
Interest Rates: Higher rates typically yield better returns, but it’s essential to consider your cash flow needs based on the coming months or years.
Tenure: Fixed deposits come with varying tenures, from as short as one month to a year. Longer tenures generally offer higher interest rates but whatever amount you invest will remain fixed during the lock-in period.
Minimum Deposit: Ensure you meet the minimum deposit requirements, which can vary significantly between banks, even online and over the counter/branch rates.
Premature Withdrawal Penalties: Be aware of any penalties or interest loss if you need to withdraw your funds before maturity.
3. Top Fixed Deposit Rates in Singapore for Jun 2024
Here are some of the banks offering the most competitive fixed deposit rates in Singapore for new placements / fresh funds, do check the validity dates.
Bank | Tenure | Interest Rate p.a. | Minimum Amount SGD |
Bank of China (This promotional rate is only applicable to personal banking customers with placement via BOC Mobile Banking.) | 3 months | 3.40% | $500 |
6 months | 3.20% | $500 | |
9 months | 3.05% | $500 | |
12 months | 3.05% | $500 | |
3 months | 2.50% | $50,000 (max $3 million) | |
6 months | 2.50% | $50,000 (max $3 million) | |
CIMB (online promo interest rate) | 3 months | 3.25% | $10,000 |
6 months | 3.20% | $10,000 | |
9 months | 3.25% | $10,000 | |
12 months | 2.95% | $10,000 | |
3 months | 1% | $1,000 (max $19,999) | |
6 months | 2.90% | $1,000 (max $19,999) | |
9 months | 3.10% | $1,000 (max $19,999) | |
12 months | 3.20% | $1,000 (max $19,999) | |
3 months | 3.20% | $30,000 (max $10,000,000) | |
6 months | 3.20% | $30,000 (max $10,000,000) | |
12 months | 2.95% | $30,000 (max $10,000,000) | |
3 months | 2.85% | $20,000 to <$50,000 | |
9 months | 2.75% | $20,000 to <$50,000 | |
ICBC (Via E-banking) | 3 months | 3.40% | $500 |
6 months | 3.15% | $500 | |
9 months | 3.05% | $500 | |
12 months | 3.05% | $500 | |
Maybank (Deposit bundle promotion) | 12 months | 3.30% | $20,000 |
OCBC (online banking) | 6 months | 2.60% | $30,000 |
8 months | 2.80% | $30,000 | |
12 months | 2.60% | $30,000 | |
3 months | 3.25% | $20,000 | |
6 months | 3.25% | $20,000 | |
12 months | 3.25% | $20,000 | |
6 months | 2.90% | $25,000 | |
6 months | 2.70% | $10,000 | |
10 months | 2.60% | $10,000 |
Source: BOC, Citigroup, CIMB, DBS, HSBC, HL Finance, ICBC, Maybank, OCBC, RHB, SC, UOB as at 2 Jun 2024
4. Strategies to Maximise Your Savings
Laddering: Spread your investment across multiple fixed deposits with different maturities. This strategy allows you to take advantage of higher rates for longer terms while keeping some funds accessible.
Promotional Rates: Keep an eye out for promotional rates which often provide higher returns for new customers or limited-time offers.
Deposit Larger Amounts: Some banks offer better rates for larger deposits. Consider pooling resources or consolidating smaller deposits to benefit from these enhanced rates.
Stay Informed: Regularly review and compare fixed deposit rates as they can change with market conditions. Staying informed ensures that you are getting the better deal.
For example, if you need the cash flow on a shorter term, for the 3 months tenure, BOC and ICBC offer the highest rates of 3.4% for a low of minimum $500 via their e-banking platforms. If you can lock in rates on a longer term for 12 months, Maybank is offering 3.3% but a minimum amount of $20,000. There’s DBS at 3.2% for a lower amount of $1,000 to $19,999 for consideration alternatively. For other similarly low-risk investment options, you can also consider the Singapore Savings Bond (SSB) for higher interest rates.
You can also check out two investment platforms, StashAway and Syfe, which offer access to cash management portfolios that invest into fixed deposits with banks.
Tenor | StashAway Simple ™ Guaranteed Guaranteed Rates (p.a.) | Syfe Cash+ Guaranteed Guaranteed Rates (p.a.) |
1 month | 3.5% | nil |
3 months | 3.75% | 3.75% |
6 months | 3.6% | 3.75% |
12 months | 3.5% | 3.6% |
Source: StashAway, Syfe at 2 Jun 2024
There is no minimum amount but these are also not SDIC insured.
Fixed deposits remain a cornerstone of secure investment strategies in Singapore, offering stability and predictable returns. If you plan to withdraw your fixed deposit before the tenure is up though, you will likely lose any interest returns that you have earned. By carefully considering the interest rates, tenure, and additional benefits offered by each bank, you can maximise your returns and achieve your financial goals.
Master Your Finances Wisely,
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