Below are the best fixed deposit rates offered by the banks in Singapore in December 2024. The Fed is on course to cut its benchmark fed funds rate by 0.25 percentage points when they next meet between 17th to 18th December. Singapore’s interest rates are heavily impacted by global rates and generally mirror the trends seen in other central banks, particularly the Fed. Thus, the yield from fixed deposits and government securities like Treasury bills (T-bills) and Singapore Savings Bonds may decrease as a result of the Fed’s interest rate reduction.
In December, some of us will be collecting our 13th month wage. The 13th month wage, also known as the Annual Wage Supplement (AWS), is a single annual payment on top of an employee’s total annual wage. It is typically paid at the end of the year, around December, and usually amounts to up to one month’s worth of gross monthly salary. Instead of splurging it, why not put the money into fixed deposits?
What are Fixed Deposits?
Fixed deposits are sometimes also termed as time deposits. Fixed deposits or time deposits are a type of investment offered by banks and financial institutions where an individual deposits a sum of money for a fixed period of time at a pre-determined interest rate. The money is locked in for the specified period, which can range from a few months to several years.
Fixed deposits are considered a safe investment option as they offer guaranteed returns and are not subject to market fluctuations. The interest earned on a fixed deposit is usually higher than that earned on a regular savings account, making it an attractive choice for individuals looking to grow their savings in a secure manner.
Fixed deposits provide a stable and reliable way to save money and earn a steady income over time.
Why Invest in Fixed Deposits When Singapore Reits Can Give You Higher Returns?
If you are a seasoned investors who can afford to take slightly higher risks, invest in Singapore REITs as REITs by its nature should give you higher returns in the form of dividends as compared to traditional fixed deposits. Having said that, Singapore REIT investors like me continued to park some money in fixed deposits because I believe fixed deposits still have its benefits.
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 Offer the Best Fixed Deposit Rate?
Is DBS fixed deposit rate still the best? Let us take a look at the interest rates offered by several Singapore Banks below.
CIMB Bank
The fixed interest rates offered by CIMB Bank remained unchanged as compared to November 2024.
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 had lowered its fixed deposit interest rates by 0.1% as compared to November 2024.
Tenure: 6 months
Interest Rate: 2.50% p.a.
Minimum Amount: S$10,000
Tenure: 10 months
Interest Rate: 2.30% p.a.
Minimum Amount: S$10,000
OCBC Fixed Deposit Rate
Similar to UOB, OCBC had reduced its interest rates for fixed deposits.
Tenure: 6 months
Interest Rate: 2.25% 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: 2.45% p.a. (Internet Banking)
Minimum Amount: S$30,000
Tenure: 12 months
Interest Rate: 2.30% p.a. (Internet Banking)
Minimum Amount: S$30,000
DBS Fixed Deposit Rate
Here are Singapore favourite bank DBS fixed deposit interest rates. In October, I had done a 12-months fixed deposit placement with DBS, locking in 3.20% per annum. The interest rates offered by DBS Bank remained unchanged.
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: 7 or 8 Months
Interest Rate: 2.70% p.a.
Minimum Amount: S$20,000 to S$49,999
Tenure: 10 or 11 Months
Interest Rate: 2.60% p.a.
Minimum Amount: S$20,000 to S$49,999
Tenure: 7 or 8 Months
Interest Rate: 2.75% p.a.
Minimum Amount: S$50,000 and above
Tenure: 10 or 11 Months
Interest Rate: 2.60% p.a.
Minimum Amount: S$50,000 and above
RHB Bank
Tenure: 3, 6, 12, 18 Months
Interest Rate: 2.90% p.a. (Personal Banking) / 3.00% p.a. (Premier Banking)
Minimum Amount: S$20,000
Can the latest Singapore Savings Bond Beat December Best Fixed Deposit Rates?
The latest issue of Singapore Savings Bond (SBJAN25 GX25010E) is giving you 2.73% if you held it for 1 year. Based on the best bank fixed deposit rates I shared above, the fixed deposit rates offered by Singapore local banks, UOB and OCBC could not match what Singapore Savings Bond (SBJAN25 GX25010E) can offer.
I would also not opt for CIMB’s 12-month fixed deposit given the lack lustre interest rates of 2.55% per annum as compared to Singapore Savings Bond of 2.73% for the first year.
DBS Bank and RHB are the only banks whereby their 12-month fixed deposit rates beat Singapore Savings Bond.
Which Bank Offers the Best Fixed Deposit Rates in December 2024?
DBS Bank continued to be the winner in terms of offering the best fixed deposit rates. The bank is still offering 3.20% per annum for a 12-months fixed deposit placement. I am not surprised given DBS was once the “World’s Best Bank“.
Where is the best place to park your money? I believe you should have the answer after reading so far.