Deposit

OCBC Fixed Deposit Promotion May 2023

Savings

Here is OCBC Fixed Deposit Promotion for the month of May 2023. This is an alternative choice if you prefer OCBC as compared to the Fixed Deposit Promotion offered by UOB.

What is the difference? OCBC is offering a slightly lower interest rate per annum at 3.30% per annum for a shorter tenor period of 6 months. The minimum placement amount for OCBC Singapore Dollar Fixed Deposit promotion is S$20,000. Only fresh funds will enjoy this promotion.

If you are wondering what “Fresh Funds” mean, “Fresh Funds” means that the deposit are not funds transferred from existing OCBC savings/current/fixed deposit account(s) or OCBC cheques, cashier’s orders and demand drafts.

You can find more information under their Terms and Conditions.

OCBC Fixed Deposit Using CPF Funds

Besides using cash to make the Fixed Deposit placement, you can now place a Singapore Dollar Time Deposit with your CPF Ordinary Account funds. However, you have to visit any OCBC Bank branch physically to make a placement.

The CPF Ordinary Account interest rate is maintained at 2.5% per annum from 1st April 2023 to 30th June 2023. OCBC’s Fixed Deposit interest rate at 3.30% per annum is definitely higher than CPF Ordinary Account at 2.5% per annum.

But do note that CPF members below 55 years old earn up to 5% interest on the first $60,000 of their combined CPF balances.

CPF members above 55 years old earn up to 6% interest on the first $30,000 of their combined CPF balances, and up to 5% on the next $30,000.

OCBC Fixed Deposit Promotion May 2023 versus SBJUN23 GX23060E

The tenor period for OCBC Fixed Deposit Promotion is 6 months. As such, this is not really an apple to apple comparison with the interest rate offered by Singapore Savings Bond.

If you decided to sell SBJUN23 GX23060E after 1 year, the interest you will earn is 2.81%. OCBC is offering 3.30% per annum. OCBC Fixed Deposit is the clear winner here.

Year from issue date Interest % Average return per year %*
1 2.81 2.81

How much will I get for a S$20,000 placement of 6months?

For a 6 months Time/Fixed Deposit placement of minimally S$20,000 with OCBC at 3.30% per annum, the interest you will get upon maturity is S$330.

Including the principle, the total amount you will get back upon maturity is S$20,330.

What is Fixed Deposit?

A fixed deposit is a financial instrument provided by banks or non-bank financial institutions which provides investors a higher rate of interest than a regular savings account, until the given maturity date. – Wikipedia

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