By MoneyBees
Work out fixed deposit interest by tenor, compare up to 4 offers on a yearly basis, see what early withdrawal costs and check the latest T-bill and SSB rates.
Banks pay simple interest: amount x yearly rate x months / 12, paid at maturity. S$10,000 at 3.2% for 12 months earns S$320. S$50,000 at 2% for 6 months earns S$500.
Turn both into a yearly yield. A 3-month deposit at 2% renewed four times at the same rate earns about 2.015% for the year. That only holds if the renewal rate stays the same, which the bank does not promise.
MoneySense warns that you may get no interest or only part of it, and some banks charge a fee. With a fee and no interest you can get back less than you deposited. Check the early withdrawal terms before you place the money.
Singapore dollar fixed deposits with SDIC member banks and finance companies are insured up to S$100,000 per depositor per bank, added together with your savings and current accounts there. The limit rose from S$75,000 on 1 Apr 2024.
Compare the yearly yield of your fixed deposit against the latest 6-month T-bill cut-off yield and the 1-year T-bill on this page, both from MAS. T-bills are auctioned, so the yield is only known after the auction, and you cannot sell a T-bill back to MAS early.
An SSB pays a rate that steps up each year and can be redeemed in any month with no penalty. Its year 1 rate is often below a fixed deposit's, but it has no lock-in. This page shows the latest SSB year 1 rate and 10-year average from MAS.
No. IRAS does not tax interest on deposits with approved banks and licensed finance companies in Singapore. Interest from non-approved banks or loans to others is taxable.
Rates change often and promotions come with conditions such as fresh funds or a minimum amount. Type the rate from the bank's own page or letter so the result matches the offer you can actually get.
Junxiong-WFG Organisation is an authorised representative of AIA Financial Advisers Private Limited (Reg. No. 201715016G).