Bank deposit locked for a fixed tenure (1m – 3yrs) in exchange for a higher rate than savings accounts. Protected up to S$100k per bank by SDIC.
A Fixed Deposit (FD) is a savings instrument from a bank where you lock a sum of money for a fixed tenure in exchange for a higher interest rate than a savings account would pay.
FDs are a Singapore staple. They're SDIC-insured up to S$100,000 per bank per depositor, predictable, and unaffected by market movement. The trade-off: your money is locked, with significant penalty if you withdraw early.
Tenures: typically 1 month to 36 months. Singapore banks heavily promote 3-, 6-, 12-month tenures.
Minimums: S$5,000 – S$20,000 at most retail banks. Some promotional rates require S$50,000+.
Rate fixing: agreed at booking, paid at maturity (or monthly for longer-tenure FDs).
Auto-renewal: at maturity, FDs typically auto-renew at the bank's prevailing rate — often much lower than the original promo rate. Diary the maturity to redeem or roll into a fresh promo.
T-bills: 6-month tenures, government-guaranteed (effectively zero credit risk), tradable on secondary market. Recent yields have often beaten FDs.
Singapore Savings Bonds: redeemable any month, no penalty, step-up coupons over 10 years. Better for emergency-fund proximity.
High-yield savings accounts (DBS Multiplier, OCBC 360, UOB One): can offer 2% – 4% effective on first S$50k – S$100k, with daily liquidity. Beats FDs if you meet the salary + spending criteria.
Cash management accounts (Endowus Cash Smart, MoneyOwl WiseSaver): similar yields to FDs but daily liquidity. Slight credit risk (uninsured by SDIC, but invested in MMFs and short-dated bonds).
Ladder maturity dates: split FD across 3, 6, 12, and 18-month tenures so something is maturing each quarter. Combines liquidity with longer-tenure yields.
Watch promo rates: Singapore retail banks compete aggressively. Maybank, RHB, ICBC, and CIMB often top the rate tables — typically 0.5% – 1% above the major local banks.
Don't break early unless essential: early withdrawal usually forfeits all accrued interest plus an admin fee. The capital is safe but the returns are gone.
Tax: FD interest is tax-exempt for Singapore residents (interest from approved banks).
Good for parked cash, not for long-term wealth building. Rates of 3% – 4% on promotional FDs match short-term Singapore inflation, so you're not losing real value — but you're not building it either. Equities and broad ETFs should be the long-term core.
Yes — fixed deposits at SDIC member banks (all major Singapore retail banks) are insured up to S$100,000 per depositor per bank. Spread across multiple banks if you have more than that to park.
Most banks forfeit all accrued interest plus charge an admin fee. The principal is safe but you lose the return. Don't lock cash you might need before maturity into FDs.
Often T-bill — yields have frequently exceeded FD promotional rates in 2023 – 2025, and you can use CPF OA for T-bills (which FDs don't allow). FD remains simpler operationally and SDIC-insured; T-bills are government-backed (equivalent credit safety).