SINGAPORE: Thinking of parking some money in a fixed deposit? Good news – as interest rates for both loans and savings accounts rise, fixed deposit rates are increasing too.

Several banks in Singapore have rolled out promotions, with this month’s rates going as high as 2.6 per cent for a 12-month fixed deposit and 2.7 per cent for 24 months.

Most lenders require minimum placements of S$20,000 for these promotional rates.

A fixed deposit, otherwise known as a time or term deposit, allows one to earn a guaranteed amount of interest for a lump sum of money deposited with a bank over a specified duration. Unlike regular savings accounts, customers cannot withdraw this money before the so-called “lock-in” duration is over.

UOB has been among the more aggressive banks, adjusting its fixed-deposit promotions monthly and offering one of the highest rates across a variety of tenor options so far.

For September, the promotional rate for a 10-month fixed deposit is 2.4 per cent, up from last month’s 1.6 per cent. The 12-month rate is 2.6 per cent, likely the highest in town as of Monday (Sep 5) when CNA did a check across various banks.

UOB’s head of group personal financial services Jacquelyn Tan said: “In the current uncertain market environment, we have seen more customers looking for safe havens to protect their wealth."
Source: CNA
#SINGAPORE