What Every Singaporean Needs to Know About Fixed Deposit Accounts

Posted by Oscar Rosario on December 21st, 2016

What is a fixed deposit account?

A fixed deposit account is a bank account that holds a depositor’s money for a set period of time and provides a fixed interest rate. Fixed deposits are also known as time deposits.

Why open one?

Fixed deposits require depositors to keep their money for a predetermined tenure, which can be as short as 1 month or as long as 36 months. One can earn a steady, fixed interest during this period.

For individuals looking for a passive means to grow their savings, opening a fixed deposit account would be a wise choice.

Is it risk-free?

A fixed deposit account is a safe, risk-free savings option. Interest payments for fixed deposit accounts occur in regular intervals, and are not affected by market fluctuations at all.

What is the best fixed deposit scheme?

The best scheme for fixed deposits consists of a high interest rate and a long-term tenure, as these can bring the highest yields for one’s savings.

Currently, the best interest rate for fixed deposits is at 0.35% per annum