Fixed deposit rates in Singapore have declined, prompting individuals to re-evaluate where to save their money. The current best fixed deposit rates in Singapore are 1.65% p.a. for a 3-month tenure offered by Bank of China, 1.60% p.a. for a 6-month tenure also offered by Bank of China, 1.60% p.a. for a 9-month tenure offered by DBS/POSB, and 1.60% p.a. for a 1-year tenure offered by DBS/POSB.
Various banks such as DBS, Bank of China, ICBC, CIMB, Maybank, Hong Leong Finance, RHB, Citibank, UOB, SBI, Standard Chartered, OCBC, and HSBC offer competitive fixed deposit rates. For instance, DBS offers a 1-year fixed deposit rate of 1.60% p.a. with a maximum deposit amount of S$19,999. Senior citizens can also earn an additional 0.10% p.a. interest on their fixed deposit for tenors of at least six months with the Premier Income Account.
When comparing fixed deposit rates to other savings options, fixed deposits offer a guaranteed amount of interest for a specific period, but may come with penalty fees for early withdrawal. Savings accounts, on the other hand, offer flexible interest rates but may not provide the same level of returns as fixed deposits. Singapore T-bills and Singapore Savings Bonds offer low-risk investment options with returns, but may not be as liquid as fixed deposits.
Cash management accounts, such as Moomoo Cash Plus and Webull Moneybull, offer relatively safe and highly liquid alternatives to cash in the bank, with indicative yields ranging from 1.80% p.a. Robo-advisors like Syfe and StashAway also offer cash management solutions with guaranteed rates. However, these options may come with foreign currency risks and are not covered by the Singapore Deposit Insurance Scheme.
Ultimately, the choice of savings option depends on individual financial goals and preferences. It is essential to compare rates, terms, and conditions before making a decision. By understanding the various options available, individuals can make informed choices to optimize their savings and generate passive income in Singapore.