While I thought CIMB currently offer the best fixed deposit promotion at 1.90% per annum, I found another fixed deposit promotion that offers even higher interest rate at 2.05% per annum! Maybank offers an interest rate of 2.05% per annum for 12 months time deposit. The promotion has been ongoing since 17 January 2019 and I wonder why I didn’t find this when I googled for fixed deposit promotions.
As mentioned previously, with the interest rates of Singapore Savings Bonds declining, short term fixed deposits may not be a bad idea to park your money which easily earns you interests.
A minimum of S$20,000 per placement is required for this promotion.
Using S$20,000 as an illustration,
If you place a fixed deposit for 12 months, the total accrued amount (principal + interest) that you will receive is
A = 20000(1 + (0.0205 × 1)) = 20410
A = $20,410.00
Parking $20,000 into a short term 12 month time deposit with Maybank easily earns you an interest of $410.
Are you sure you are reporting accurately?
You have missed out the following:
“Every S$1,000 deposited into Maybank Current or Savings accounts
Hi Chon Chon, yes you are right. I checked MayBank’s website again.
For every S$1,000 deposited into the CASA Account, S$10,000 can be placed into the Singapore Dollar Time Deposit, subject to a minimum of S$20,000 in Time Deposit and the corresponding minimum deposit of S$2,000 in the CASA Account.
This works out to 10000x 0.25% + 100000×2.05%= 2075/110000= 1.88%
Is it 1.86 % in actual fact if as those amounts in Savings Account is also freeze during that FD period …?
The effective interest rate of this promotion is lower than 2.05%, as there is a need to park an amount equivalent to 10% of the FD principal into specific CASA account for the same duration as the FD.