12 Months Time Deposit Promotion Earns You 2.05%

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.

CIMB Chinese New Year 2019 Fixed Deposit Promotion

Looking for somewhere to park your Ang Bao money? Well, I always looked for Chinese New Year Fixed Deposit Promotions every year during this festive season. However, there are not many banks offering special higher interest rates because of Chinese New Year. The best one I have found so far is from CIMB Bank. CIMB Bank is offering an interest rate of up to 1.90% per annum. This is in fact the same as what CIMB has offered during their Birthday celebration and last year Christmas.

With the interest rates of Singapore Savings Bonds declining, CIMB’s fixed deposit promotion may not be a bad idea to park your money for a short duration of 12 months.

You can choose the duration of 3 months, 6 months or 12 months and if you apply online, they offer higher interest rates as shown in the table below.

Interest Rates (% p.a.)
3 Months 6 Months 12 Months
Branch Rate 1.30 1.45 1.55
Online Exclusive Rates 1.50 1.70 1.90

A minimum of S$10,000 per placement is required.

Using S$10,000 as an illustration,

If you place a fixed deposit for 3 months, the total accrued amount (principal + interest) that you will receive is

A = 10000(1 + (0.0150 × 0.25)) = 10037.50
A = $10,037.50

If you place a fixed deposit for 6 months, the total accrued amount (principal + interest) that you will receive is

A = 10000(1 + (0.0170 × 0.5)) = 10085
A = $10,085.00

If you place a fixed deposit for 12 months, the total accrued amount (principal + interest) that you will receive is

A = 10000(1 + (0.0190 × 1)) = 10190
A = $10,190.00

I believe the above is a good deal if you have extra cash to park aside for a short duration of maximum 12 months.

March 2019 Singapore Savings Bonds is 2.18%

Oh well, this month’s Singapore Savings Bonds may not be the best place to park your Ang Bao monies. The effective interest rate for March 2019 Singapore Savings Bonds (GX19030Z) is 2.18% if you held it for 10 years. As you can see from the chart above, the effective interest rate has dipped further from 2.20% to a pathetic 2.18%. Nevertheless, as usual, I shall be allocating a portion of my monthly salary into safe haven as the Singapore Savings Bonds acts as a form of emergency fund when the need arises.

If you didn’t know yet, SRS applications for Savings Bonds open from this month and individual limit has doubled to $200,000. I personally felt that the introduction of SRS application for Savings Bonds is an excellent initiative as the SRS currently earns a petite interest rate of 0.05% per annum.

If you hold a DBS Multiplier Account, you can perhaps try this hack to achieve a higher interest rate payout.

Earn More Interest With DBS Multiplier Account + Singapore Savings Bonds