Tag: Fixed Deposits

As the interest rate for Singapore Savings Bonds continue to fall, it is probably time to consider the traditional fixed deposit promotions.

It is very difficult to decide which is the best fixed deposit promotion for the month of October as the minimum placement amount is different for each bank. The locked in period is also different. Below are the fixed deposit promotions that I have found in the month of October.

If you have S$20,000 to spare to lock in for 12 months, I will choose CIMB as it offers the best interest rate of 1.85% p.a.

If you can’t afford to wait 12 months and wanted something shorter in terms of locked in period, I will choose MayBank since if offers interest rate of 2.10% p.a. for 9 months.

Hong Leong Finance and Standard Chartered Bank are losing out in terms of interest rate but their rates are still considered attractive as compared to local banks such as UOB or OCBC. That is also why I seldom wrote about them since they never offered any attractive fixed deposit interest rates. Read More

After I wrote about the The Best Fixed Deposits of September 2019, one of my readers asked about the time deposit offered by Maybank as the interest rate offered is 2.00% per annum. I went to the website to find out more. For a 2.00% interest rate p.a. the tenure is actually 24 months. Furthermore, you need S$50,001.

Here are the details for the iSAVvy Time deposit offered by Maybank:

• You need to have a Maybank Current or Savings account.
• The placement must be done via MayBank online banking.
• The minimum placement amount is S$50,001 and the maximum is S$1 million.
• Choose between 12 months or 24 months period to enjoy 1.70% p.a. or 2.00% p.a. respectively.
• For placements via Online Banking, an upfront interest of 0.25% p.a. will be credited into customer’s savings or current account, opened and/or maintained with Maybank, on the next business day following the successful placement of the iSAVvy Time Deposit. The remaining interest will be paid upon maturity.

For a time deposit of S$50,001 at 2.00% p.a. for 24 months, the estimated interest you earn is S$2,001.04.

What if you place S$50,000 into October’s Singapore Savings Bonds and sell it after 2 years?

Based on the Singapore Savings Bonds calculator, the interest you get is $1,640.00. Thus in conclusion, if you can afford to lock down S$50,001 and not require the money for 2 years, then MayBank iSaVvy Time Deposit is still a good deal after all!

As this month’s issue of Singapore Saving Bonds disappoints us with an effective interest rate of 1.64% p.a. if you held it for a year, let us take a look at some fixed deposit promotions that offers a higher interest rate if you have spare cash to lock down for a year. I am not going to list every fixed deposit promotions from every bank but a few which I think the bank is reliable and there is ease of doing a fixed deposit placement with them.

The winner this month is Standard Chartered Bank which I felt is a clear winner if you happen to be a priority banking customer of theirs as they are offering a interest rate of 1.90% per annum for priority banking customers. If you are not, you get still get to enjoy an interest rate of 1.80%.

I will settle with CIMB fixed deposit if I am not a Standard Chartered Bank priority banking customer as CIMB offers a slightly higher interest rate of 1.85% per annum for a placement of 12 months done online.

Below are the 12 months fixed deposit offered by three banks which beats October 2019 issue of the Singapore Savings Bonds: Read More