The Best Fixed Deposit Rates in Singapore for above/at 3.5%

Currently many are lamenting about the low interest rates they are receiving from fixed deposits.

I find this not entirely true because beyond the 3 local banks, many foreign banks are giving good rates for their FDs; just that they are not being advertised. This is likely due to them not being particularly bothered with Singapore's market.

Best Banks to Put Your Money Now

Singsaver has done an up to date almost awesome list, so credits to them!

The best banks to put Fixed Deposits of 12 months duration now:

$1,000- $10,000 Range: ICBC Singapore Bank, if over the counter at the branch: Bank of China Singapore

$10,000- $100,000 range: ICBC Singapore Bank, if over the counter at the branch: Bank of China Singapore

[No typos here!] but I notice its the chinese banks currently giving the best rates at 3.5-3.6%.

Besides them, CIMB and RHB are giving good rates too

First $75,000 at Each Bank is insured and You will Get it Back

These banks are insured under the Singapore deposit insurance scheme. So whatever money you put in (of first $75,000) is insured and protected!

Furthermore, these foreign banks are rather large to the extent that I would recommend investing in one of them over DBS or even OCBC (see my post here). ICBC has a very strong balance sheet, is well captialised and profitable. So it is rather safe to place a FD with ICBC; though i would recommend buying their shares instead!

SORA Rate is Pointing to 3+% interest

The Singapore Overnight Rate Average (SORA) determines the rates new loans are issued. New loans tend to be issued above SORA rates. Effectively SORA is similar to Singapore's risk free rate.

Currently the 3 month SORA rate is 3.6% (based on MAS data)

Hence, it is likely most other banks will soon be offering rates close to 3.6%. For now, I will highly recommend putting majority of your wealth with the Singapore branches of these Chinese and Malaysian banks. 

Given that there is SDIC insurance, your fixed deposts are relatively safe.

Look beyond the 3 Local Banks

Many of us grew up with these 3 local banks (DBS/OCBC/UOB) being known to us and have remained banking with them. However, the turth is that if you look beyond them, there are other banks which are offering better rates which helps to accumulate your wealth faster.

Hence as individuals managing our own money, it is important to be aware of the existence of other banks and use the opportunity to bank with them to compound your wealth faster. Personally, I am using a Malaysian Bank as well due to this factor.