Maybank is offering the highest rate at 3 per cent per annum for a 1-year fixed deposit tenure. For similar 12 months fixed deposit tenure, Singapore banks OCBC and UOB range from 2.65 per cent to 2.9 per cent.
According to data from the Monetary Authority of Singapore (MAS), these fixed deposit (FD) rates are the highest in almost 24 years. The last time interest rates on 12-month deposits exceed 3 per cent was in November 1998.
For a longer tenure of 24 months fixed deposit, RHB is offering the highest at 3.2 per cent interest rate.
Beyond 12 months, promotional rates for a 15-month duration are going at 3 per cent and 3.05 per cent at UOB and Maybank, respectively.
For a short term fixed deposit of 6 months, Maybank has the highest interest rate at 2.8 per cent.
Most banks will review their promotional fixed deposit rate on a monthly basis as US Federal reserve persists on rate hike to counter inflation.
Singapore banks recently revised its home loans fixed rate package to 3.5 per cent or even higher.
In the last few years when interest rate was extremely low, banks were lending out at low rates so it has affected fixed deposits rate adversely.
As the volatility in the global stock markets increases, there is no better place to put your funds for a guaranteed returns.
In the event a Deposit Insurance (DI) Scheme member bank or finance company fails, all of your insured deposits with that member are aggregated and insured up to S$75,000 by the Singapore Deposit Insurance Corporation Limited (SDIC).
There is an early withdrawal penalty if you terminate your fixed deposit before maturity date. As a result, you will earn only prorated interest rate based on your tenor.