Fixed Deposits in Singapore (2026): How They Work, Safety & Alternatives

Got some spare cash sitting in a savings account and earning very little?

A fixed deposit is one of the simplest ways to earn more on it without taking on investment risk. You agree to leave your money with a bank for a set period, and in return the bank pays you a fixed rate of interest.

The catches are mostly about access. Taking your money out early usually costs you, and what happens when the deposit ends is easy to overlook. Here’s what to know before you lock any cash away.

Key Takeaways

• A fixed deposit pays a rate of interest that’s agreed upfront and usually stays the same for the whole tenure, which commonly ranges from a few months to a few years.
• Singapore dollar fixed deposits with SDIC member banks and finance companies are insured up to $100,000 per depositor per member (as of 2026), counted together with your other insured deposits at the same institution.
• Foreign currency fixed deposits and structured deposits are not covered by Singapore’s deposit insurance scheme.
• Withdrawing a fixed deposit before it matures usually means earning less interest than you were promised, and some banks also charge a fee.
• Interest earned on deposits with approved banks and licensed finance companies in Singapore is not taxable for individuals, according to IRAS.
• Fixed deposit rates change often, so check the bank’s own website for the current rate before you place your money.

What Is a Fixed Deposit in Singapore?

A fixed deposit (also called a time deposit) is a deposit account with a bank or finance company where you place a lump sum for an agreed length of time, called the tenure, in exchange for an interest rate that’s fixed when you open it.

In a regular savings account, your rate can change at any time. With a fixed deposit, you know exactly what you’ll earn if you leave the money untouched until the end of the tenure.

When you place one, you decide how much to put in and how long to leave it there. Tenures often run from one month to two or three years.

Banks set a minimum amount, and the rate you get can depend on how much you deposit. Most people use Singapore dollars, though many banks also offer fixed deposits in foreign currencies such as the US dollar.

How fixed deposit interest is worked out

The interest on a fixed deposit is easy to estimate. Multiply your deposit by the annual rate, then by the fraction of the year your money is locked in.

Here’s an illustration using a rate of 1.5% a year (chosen only to keep the maths simple, not a current offer):

Deposit and tenure	Estimated interest at maturity
$20,000 for 6 months	$150
$20,000 for 12 months	$300
$50,000 for 12 months	$750

Banks may work out the exact figure based on the number of days, so what you receive can differ slightly from this simple estimate.

Halve the tenure and you halve the interest, even at the same rate. So when you compare offers, work out the dollar amount you’d actually receive as well as the headline rate.

Where Can You Open a Fixed Deposit in Singapore?

You can place a fixed deposit with most retail banks in Singapore, as well as with licensed finance companies.

The main groups are:

• Local banks, such as DBS/POSB, OCBC, and UOB
• Foreign banks with a retail presence here, such as Bank of China, CIMB, Citibank, HSBC, ICBC, Maybank, RHB, and Standard Chartered
• Finance companies, such as Hong Leong Finance, Sing Investments & Finance, and Singapura Finance

Finance companies are less well known than banks, but they are licensed by MAS and their Singapore dollar deposits fall under the same deposit insurance scheme. You can check whether an institution is licensed on the MAS Financial Institutions Directory.

Fixed deposits aren’t only for Singaporeans and PRs. Many banks also accept foreigners holding a valid pass, though the documents required differ from bank to bank.

Some banks also let you place money from your Supplementary Retirement Scheme (SRS) account in a fixed deposit, In my opinion, this is worth a look if your SRS contributions have been sitting uninvested, since it takes very little effort.

How to Compare Fixed Deposit Rates

Fixed deposit rates in Singapore change frequently, and promotions come and go throughout the year. That’s why we don’t list rates here, since a table could be out of date within weeks.

What stays the same is what to look out for when you check a bank’s current offers.

Promotional rates vs board rates

Banks usually publish two kinds of rates. Promotional rates are time-limited offers, and they’re typically much higher than the standard board rates.

The catch is that promotions often come with conditions. A bank may only offer its headline rate for placements made online or through its app, for a minimum amount, or for a specific tenure.

Fresh funds requirements

Many promotions only apply to “fresh funds”, meaning money that wasn’t already sitting with that bank. Shifting cash from your existing savings account at the same bank may not qualify.

Minimum amounts and tiers

Minimum deposits vary widely. Some banks accept a few hundred dollars, while the best promotional rates often need tens of thousands.

Rates can also be tiered, so a larger deposit may earn a different rate from a smaller one at the same bank.

Tenure

A longer tenure doesn’t always pay a higher rate. Banks price each tenure separately, so a shorter tenure sometimes pays more than a longer one.

Choose a tenure that matches when you’ll need the money, then compare rates within that tenure.

Are Fixed Deposits Safe in Singapore?

Singapore dollar fixed deposits are one of the lowest-risk ways to hold cash in Singapore, because they’re covered by the Deposit Insurance Scheme run by the Singapore Deposit Insurance Corporation (SDIC).

If an SDIC member bank or finance company fails, your insured deposits with it are protected up to $100,000 per depositor per member (as of 2026). Coverage is automatic, so there’s nothing to sign up for.

Before placing a large sum, it’s worth confirming that the bank or finance company is a scheme member. SDIC publishes the list on its website.

There are a few limits worth knowing:

• The $100,000 limit is shared across your accounts at the same institution. Your savings, current, and fixed deposit accounts at one bank are added together before the limit is applied.
• Each member institution has its own limit. If you have more than $100,000 in deposits, spreading them across different banks or finance companies keeps more of your money within the insured amount.
• Not every deposit is covered. SDIC’s scope of coverage excludes foreign currency deposits, structured deposits, and investment products.

Watch out for structured deposits in particular. The name sounds similar, but they aren’t fixed deposits. Their returns are linked to an investment element, and they fall outside deposit insurance.

How SRS and CPF Investment Scheme monies are treated, and what happens to your money if a bank fails, is covered in more detail in our explainer on deposit insurance in Singapore.

Can You Withdraw a Fixed Deposit Early?

Yes, most banks let you withdraw a fixed deposit before it matures, but you’ll usually earn less interest than you were promised.

Depending on the bank, an early withdrawal may mean:

• Earning interest at a much lower rate than the one you locked in
• Earning no interest at all
• Paying a premature withdrawal fee, which at some banks can leave you with less than you originally deposited

The exact terms differ between banks and products, so read them before you place your money. If there’s a real chance you’ll need the cash early, a shorter tenure or a more flexible option (covered below) may suit you better.

What Happens When a Fixed Deposit Matures?

When the tenure ends, your fixed deposit has matured, and you can withdraw your money plus the interest earned.

If you don’t give the bank instructions in time, many banks will automatically renew the deposit, often for the same tenure. The renewal is usually at the bank’s prevailing rate, which can be well below the promotional rate you started with.

In my opinion, this is the part that’s easiest to overlook. A calendar reminder a week or so before the maturity date gives you time to check the latest offers and send the bank your instructions before its cut-off.

If you keep rolling your deposit over along with the interest, that interest starts earning interest of its own.

Is Fixed Deposit Interest Taxable in Singapore?

For individuals, interest earned on deposits with approved banks and licensed finance companies in Singapore is generally not taxable.

The IRAS guidance on interest income lists deposits with approved banks and licensed finance companies as non-taxable. Interest from deposits with finance companies not licensed in Singapore is treated differently, which is one more reason to check that an institution is licensed.

Pros and Cons of Fixed Deposits

Pros

• You know your return upfront. The rate is fixed for the tenure, so falling interest rates won’t reduce what you earn on that deposit.
• Your capital is protected. Singapore dollar deposits are insured up to the scheme’s limit, and market movements won’t affect what you get back at maturity.
• A promotional fixed deposit rate is typically higher than the base rate on an ordinary savings account.
• Once it’s placed, there’s nothing to monitor until the maturity date.

Cons

• Your money is locked in. Getting it out early usually costs you some or all of the interest.
• It may not keep up with inflation. In some years, fixed deposit rates have sat below Singapore’s inflation rate, which means the money buys less when it comes out than when it went in.
• The rate on offer when your deposit matures may be lower than the one you started with.
• For goals many years away, a fixed deposit alone is unlikely to grow your money as much as a diversified, longer-term portfolio may, though that comes with more risk.

Fixed Deposits vs Common Alternatives

Fixed deposits are one of several low-risk options in Singapore. Which one fits depends mostly on how soon you might need the money and how much flexibility you want.

High-interest savings accounts

Some savings accounts pay bonus interest if you meet conditions such as crediting your salary, spending on the bank’s card, or holding other products with the bank.

Your money stays accessible at any time, and Singapore dollar balances are covered by deposit insurance up to the same limit. The trade-off is that rates and bonus conditions can change whenever the bank decides, and meeting the criteria takes some effort.

Treasury bills (T-bills)

T-bills are short-term Singapore Government securities with tenors of six months or one year. You can buy them with cash, SRS funds, or CPF savings.

They’re backed by the government, and the return is set at auction. If you need the money before maturity, you’d have to sell on the secondary market, where the price isn’t guaranteed. T-bills sit within the wider family of Singapore Government Securities, which also includes longer-term government bonds.

Singapore Savings Bonds (SSBs)

Singapore Savings Bonds are fully backed by the Singapore Government and have a tenor of 10 years. Their interest steps up the longer you hold them.

Their biggest advantage over a fixed deposit is flexibility. According to MAS, you can redeem them in any month without penalty, and get your money back within a month. You can buy them with cash or SRS funds, and the details of how SSBs work are worth reading before you apply.

Cash management accounts

Cash management accounts are offered by investment platforms and usually invest your cash in money market funds.

They can be convenient and quick to access, but they are investments rather than deposits. Returns aren’t guaranteed and the value can fall. Deposit insurance doesn’t cover them either.

Endowment plans

Endowment savings plans are insurance policies that combine savings with some protection, usually over a much longer period than a fixed deposit.

They’re not bank deposits, so the Deposit Insurance Scheme doesn’t apply (life policies fall under a separate Policy Owners’ Protection Scheme instead). Surrendering a plan early may mean getting back less than the premiums you’ve paid, so they suit money you’re sure you won’t need for many years.

Who Are Fixed Deposits Best Suited For?

Fixed deposits tend to work well when you know roughly when you’ll need the money and want certainty about what it will earn in the meantime.

They can suit:

• Short-term goals, such as money set aside for a renovation or a home down payment due within a year or two.
• Part of an emergency fund. Keep enough for sudden expenses in an instant-access account, and consider a short fixed deposit for the portion you’re less likely to touch. If you’re unsure how much that should be, here’s how to work out the right size for an emergency fund.
• People who value certainty, for example those approaching or in retirement who want part of their savings in something that won’t fluctuate.

For goals that are many years away, such as retirement for someone in their 30s or 40s, relying on fixed deposits alone may mean your money grows too slowly to keep pace with rising costs.

In Closing

Fixed deposits won’t grow your money quickly, and they aren’t meant to. They’re for cash you’ll need in the near future and don’t want to put at risk.

Before you place one, check the bank’s current offer on its own website and read the terms on fresh funds and early withdrawal. Then put the maturity date in your calendar, so the deposit doesn’t renew at a lower rate without you noticing.

It also helps to see where fixed deposits sit in your wider plan, next to your CPF and investments. A step-by-step approach to personal financial planning in Singapore can help you decide how much belongs in each.