Best Fixed Deposits in June 2024

One of my fixed deposit tranches is maturing and thus I am looking for the best fixed deposits available in June 2024. Investing in fixed deposits is one of the methods that I use to help me work towards retiring early in Singapore. The interests collected at the maturity of the fixed deposit acts as a form of passive income. Passive income is important if you want to retire early as it helps to mitigate against longevity and inflation.

What is a fixed deposit? Fixed deposit is a type of bank account where you deposit a lump sum of money for a predetermined duration. In return, the bank pays you a fixed rate of interest on that amount. Fixed deposits are low-risk investments because they are practically risk-free. In Singapore, your deposits are also insured by the Singapore Deposit Insurance Corporation (SDIC) for up to S$75,000.

I adopt a strategy called fixed deposit laddering. Fixed deposit laddering is a smart investment strategy that allowed me to optimize my returns while maintaining liquidity. I have created a ladder of fixed deposits. Instead of investing a lump sum amount in a single long-term fixed deposit, I spread my investment across multiple fixed deposits with varying tenures. Besides fixed deposit, the laddering strategy can be applied to other investment products such as Singapore Savings Bond as well.

Based on the fixed deposits I found, it seems that the interest rates for shorter term deposits are higher than long term (12 months). Below are the best fixed deposits in June 2024.

Best Fixed Deposits in June 2024

CIMB Bank

Tenure: 3, 9 Months
Interest Rate: 3.25% p.a. (Personal Banking) / 3.30% p.a. (Preferred Banking)
Minimum Amount: S$10,000

Tenure: 6 Months
Interest Rate: 3.20% p.a. (Personal Banking) / 3.25% p.a. (Preferred Banking)
Minimum Amount: S$10,000

Tenure: 12 Months
Interest Rate: 2.95% p.a. (Personal Banking) / 3.00% p.a. (Preferred Banking)
Minimum Amount: S$10,000

UOB Bank

Tenure: 6 Months
Interest Rate: 2.70% p.a.
Minimum Amount: S$10,000

Tenure: 10 Months
Interest Rate: 2.60% p.a.
Minimum Amount: S$10,000

OCBC Bank

Tenure: 6, 8, 12 Months
Interest Rate: 2.30% p.a. (OCBC Branch)
Minimum Amount: S$30,000

Tenure: 6, 12 Months
Interest Rate: 2.60% p.a. (Internet Banking)
Minimum Amount: S$30,000

Tenure: 8 Months
Interest Rate: 2.80% p.a. (Internet Banking)
Minimum Amount: S$30,000

DBS Bank

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, 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: 3, 4 Months
Interest Rate: 2.85% p.a.
Minimum Amount: S$20,000 to S$49,999

Tenure: 9, 10 Months
Interest Rate: 2.75% p.a.
Minimum Amount: S$20,000 to S$49,999

Tenure: 3, 4 Months
Interest Rate: 2.90% p.a.
Minimum Amount: S$50,000 and above

Tenure: 9, 10 Months
Interest Rate: 2.80% p.a.
Minimum Amount: S$50,000 and above

RHB Bank

Tenure: 3, 6, 12 Months
Interest Rate: 3.25% p.a. (Personal Banking) / 3.30% p.a. (Premier Banking)
Minimum Amount: S$20,000