Saving vs investing calculator

Singapore banks use simple interest for FDs: Interest = Principal × Rate × (Tenure in years). For example, S$50,000 at 3% p.a. for 12 months earns S$1,500. The interest is paid at maturity, on the original principal only.

Yes, up to limits. Singapore Dollar deposits at SDIC member banks (most major retail banks) are insured by the Singapore Deposit Insurance Corporation up to S$100,000 per depositor per bank. Above that threshold or in foreign currency, deposits aren't covered. Spreading large sums across banks is one way to extend coverage.

Over rolling 10–20 year windows, a globally diversified portfolio of equities and bonds (e.g., 60% global equities / 40% bonds) has historically returned around 5–7% per year before fees. Returns are NOT guaranteed and any given year can be sharply negative. But the longer you stay invested, the more reliably this range plays out.

Short horizons (under 2 years) and capital that you absolutely cannot afford to see drop. For a downpayment due next year or a planned wedding expense, locking in a known FD rate is usually the right move, because you trade upside for certainty. For 5+ year horizons, the certainty of FDs comes at the cost of significant compounded growth.

This is the silent killer of long-term FDs. Singapore's long-run inflation runs around 2–3%. A 2.5% FD just keeps pace; a 2% FD slowly loses purchasing power. A diversified portfolio aiming for ~5–7% nominal returns clears inflation comfortably most years, which is why long-horizon money usually does better invested.

Personal interest income from Singapore-licensed banks is generally exempt from Singapore income tax for individuals, which slightly improves the FD's net return. Capital gains from investments are also untaxed for individuals. Both vehicles benefit from Singapore's investor-friendly tax regime, so the comparison comes down to gross returns and risk tolerance.

Most people should. A common framework: keep 3–6 months of essential expenses in instant-access savings, ladder some FDs or T-bills for medium-term needs (1–3 years), and put long-term money (5+ year goals like retirement) into a diversified investment portfolio. The split depends on your goals, horizon, and how you sleep when markets fall.

In October 2026 the best 12-month promos pay about 1.6% to 1.7% (UOB 1.70%, OCBC 1.65% online), while DBS's 12-month board rate is 1.00%. Rates change constantly and depend on tenure and minimum deposit, so always check the bank's current board rate before locking in.

All are very low risk. Fixed deposits are simple and SDIC-insured up to S$100,000. T-bills (6-month/1-year) are bought at auction and can yield more, with no early-withdrawal at par. Singapore Savings Bonds are flexible (redeem any month, no penalty) and step up over 10 years. Compare the latest yields. The gaps are small in 2026.

Splitting your money across FDs that mature at staggered dates (e.g. 3, 6, 9 and 12 months). As each matures you reinvest at the latest rate, so you keep regular access to some cash while still earning FD rates, a hedge against locking everything in just before rates move.