With falling interest rates, are you wondering which bank offers the best fixed deposit in October 2024? The cutoff yield for 6-Month Singapore Treasury Bills (T Bills) BS24119S is only 2.97% per annum. Is there any fixed deposit that can beat 2.97% per annum? Where is the best place to park your money?
Fixed deposits are a type of savings account offered by banks and financial institutions where a sum of money is deposited for a fixed period of time at a fixed interest rate. The duration of a fixed deposit can range from a few months to several years. The interest rate is usually higher than a regular savings account, making it an attractive option for those looking to earn a guaranteed return on their savings.
Fixed deposits are considered a safe investment as they are typically insured by the government up to a certain amount. However, the funds are locked in for the duration of the deposit, meaning they cannot be accessed until the maturity date without incurring a penalty.
Why Invest in Fixed Deposits When Singapore Reits Can Give You Higher Returns?
Investing in fixed deposits in Singapore can provide certain advantages that may suit some investors’ preferences. Fixed deposits are considered low-risk investments that offer a guaranteed return on your capital, making them a safer option for those who prioritize capital preservation.
Additionally, fixed deposits are backed by the Singapore Deposit Insurance Corporation, which provides protection for depositors in case of bank failures.
On the other hand, Singapore REITs may offer higher returns but come with higher risks due to market fluctuations and economic conditions. Investors looking for stable and predictable returns may find fixed deposits to be a more suitable investment option.
Which Bank Gives You the Best Fixed Deposit Returns?
Let us take a look at the interest rates offered by several Singapore Banks below.
CIMB Bank
Tenure: 3 Months or 6 months
Interest Rate: 2.75% p.a. (Personal Banking) / 2.80% p.a. (Preferred Banking)
Minimum Amount: S$10,000
Tenure: 9 Months or 12 months
Interest Rate: 2.55% p.a. (Personal Banking) / 2.60% p.a. (Preferred Banking)
Minimum Amount: S$10,000
UOB Fixed Deposit Rate
UOB has maintained its fixed deposit interest rates similar to September 2024.
Tenure: 6 Months
Interest Rate: 2.70% p.a.
Minimum Amount: S$10,000
Tenure: 10 Months
Interest Rate: 2.50% p.a.
Minimum Amount: S$10,000
OCBC Fixed Deposit Rate
Here are OCBC fixed deposit interest rates. The 6 months fixed deposit is 0.4% per annum lower than what UOB offered.
Tenure: 6 Months
Interest Rate: 2.30% p.a. (OCBC Branch)
Minimum Amount: S$30,000
Tenure: 12 Months
Interest Rate: 2.10% p.a. (OCBC Branch)
Minimum Amount: S$30,000
Tenure: 6 Months
Interest Rate: 2.60% p.a. (Internet Banking)
Minimum Amount: S$30,000
Tenure: 12 Months
Interest Rate: 2.40% p.a. (Internet Banking)
Minimum Amount: S$30,000
DBS Fixed Deposit Rate
Here are Singapore favourite bank DBS fixed deposit interest rates.
Tenure: 6 Months
Interest Rate: 2.90% p.a.
Minimum Amount: S$1,000 to $$19,999
Tenure: 7 Months
Interest Rate: 2.95% p.a.
Minimum Amount: S$1,000 to $$19,999
Tenure: 8 Months
Interest Rate: 3.00% p.a.
Minimum Amount: S$1,000 to $$19,999
Tenure: 9 Months
Interest Rate: 3.10% p.a.
Minimum Amount: S$1,000 to $$19,999
Tenure: 10 or 11 Months
Interest Rate: 3.15% p.a.
Minimum Amount: S$1,000 to $$19,999
Tenure: 12 Months
Interest Rate: 3.20% p.a.
Minimum Amount: S$1,000 to $$19,999
Hong Leong Finance
Tenure: 6 or 7 Months
Interest Rate: 2.65% p.a.
Minimum Amount: S$20,000 to S$49,999
Tenure: 11 Months
Interest Rate: 2.50% p.a.
Minimum Amount: S$20,000 to S$49,999
Tenure: 6 or 7 Months
Interest Rate: 2.70% p.a.
Minimum Amount: S$50,000 and above
Tenure: 11 Months
Interest Rate: 2.55% p.a.
Minimum Amount: S$50,000 and above
RHB Bank
You could earn up to 3.70% p.a. for 3, 6 or 12-months fixed deposit placement with RHB Bank if you sign up for their Wealth Product.
Tenure: 3 Months
Interest Rate: 2.70% p.a. (Personal Banking) / 2.75% p.a. (Premier Banking)
Minimum Amount: S$20,000
Tenure: 6 Months
Interest Rate: 2.60% p.a. (Personal Banking) / 2.65% p.a. (Premier Banking)
Minimum Amount: S$20,000
Tenure: 12 Months
Interest Rate: 2.50% p.a. (Personal Banking) / 2.55% p.a. (Premier Banking)
Minimum Amount: S$20,000
Which bank fixed deposit is the best?
Let us take S$20,000 as an example. In my opinion, CIMB offers the best competitive fixed deposit interest rate at 2.75% p.a. for a 6-month fixed deposit placement.
Having said that, none of the above fixed deposit can beat previous Singapore T Bill’s cut off yield (BS24119S) at 2.97% per annum. Thus, you may wish to check out the next issue of Singapore Treasury Bills whereby the interest rate may not be too far off.
If you would like to do a 12-month fixed deposit placement, I will opt for DBS Bank as they offer the highest interest rate in town at 3.20% p.a. for deposits between S$1,000 to $$19,999. I am very surprised DBS did not revise their fixed deposit rates.