Chinese New Year 2016 is approaching soon. Every year this time, banks will offer promotional fixed deposit rates.
Last year, I placed my money with POSB for 12 months at a promotional interest rate of 1.88 percent. I also got the S$88 lucky Ang Bao (“red packet”) that was offered for the first 10,000 customers.
Personally, I felt that the promotional interest rates this year was not fantastic and in fact, most banks are offering lower interest rates as compared to last year. If you compare it with the Singapore Savings Bonds, the interest rate look even worst.
February Singapore Savings Bonds offer an interest rate of 2.5% over 10 years with no lock in period. However, we know there are many factors to consider besides the interest rate. For example, you need to compare against the holding period between a bond and fixed deposit. Below is the summary of the promotions I found.
2016 Fixed Deposit Promotions
|Bank||Interest Rate||Minimum Sum||Holding Period||Special Condition|
|OCBC||1.70%||S$20,000||12 months||Fresh Funds|
|1.80 %||S$100,000||12 months||Fresh Funds, Premier Bank Customer|
|UOB||1.0% + 0.1%||S$15,000||12 months||Fresh Funds|
|1.20% + 0.1%||Above S$50,000 to S$100,000||12 months||Fresh Funds|
|1.40% + 0.1%||Above S$100,000 to S$1,000,000||12 months||Fresh Funds|
|Standard Chartered||1.65%||S$25,000||7 months||Fresh Funds|
|1.68%||S$25,000||7 months||Fresh Funds, Priority Banking Customer|
|1.85%||S$25,000||12 months||Fresh Funds|
|1.88%||S$25,000||12 months||Fresh Funds, Priority Banking Customer|
|2.05%||S$25,000||24 months||Fresh Funds|
|2.08%||S$25,000||24 months||Fresh Funds, Priority Banking Customer|
|CIMB||1.60%||S$20,000||6 months||Fresh Funds|
|1.75%||S$20,000||9 months||Fresh Funds|
|1.80%||S$20,000||12 months||Fresh Funds|
|1.95%||S$20,000||24 months||Fresh Funds|
|1.65%||S$100,000||6 months||Fresh Funds|
|1.80%||S$100,000||9 months||Fresh Funds|
|1.85%||S$100,000||12 months||Fresh Funds|
|2.00%||S$100,000||24 months||Fresh Funds|
Please refer to the individual bank websites for more details.