Dear readers, in this post, let us compare the fixed deposit offerings from DBS, OCBC and UOB, the three largest banks in Singapore.
First, DBS Fixed Deposits. DBS is offering graduated fixed deposits rate depending on the holding period and the amount of the fixed deposit, you can find out more from DBS Fixed Deposits webpage.
We can note that DBS pays the board interest rate for fixed deposits amount more than $20,000. For fixed deposits up to $19,999, here are the interest rates p.a:
3-month holdings: 1%
4-month holdings: 1.85%
5-month holdings: 2.35%
6-month holdings: 2.9%
7-month holdings: 2.95%
8-month holdings: 3%
9-month holdings: 3.1%
10,11-month holdings: 3.15%
12 to 60-month holdings: 3.2%
What one may like about DBS Fixed Deposits is that the bank offers a decent fixed deposit (3.2% p.a) for 60 months (5 years, which I believe to be the longest among the banks), however, one must note that this 3.2% p.a for 5 years only apply to the first $19,999.
Savers who want to reap similar interest rates can consider the Singapore Savings Bonds, where the upcoming Apr 2023 Savings Bonds provides an average annual yield of 3.15% p.a for 10 years and savers can have the choice to liquidate at no penalty for early withdrawals. However, savers with a substantial capital may need to apply for a few savings bonds to fully put in their capital, given there is an allotment cap to each savings bonds.
Next, OCBC Fixed Deposits.
OCBC offers a very neat and clear-cut fixed deposit: 3.55% p.a for 5 months of fixed deposits of $20,000 and above using Internet Banking and there is also a CPF option (do visit the branch to apply using CPF). For more details, visit OCBC Fixed Deposits webpage.
Last but not least, UOB Fixed Deposits
UOB offers for holding period of 6,10, 12-month the following fixed deposit interest rates (more details at UOB Fixed Deposits webpage):
3.55% p.a for $10,000 to $49,999 deposit
3.85% p.a for $50,000 to $999,999 deposit
3.95% p.a for $1,000,000 and above
The lowest tier of UOB Fixed Deposits is similar to OCBC’s: 3.55% per annum (for minimum holding of 6 months for UOB and 5 months for OCBC, but UOB’s minimum fixed deposit amount at $10,000 is lower compared to $20,000 for OCBC). But looking to the next tier, I find the 3.85% p.a for $50,000 to $999,999 deposit more attractive than OCBC’s.
As an illustration, given a saver with $50,000 to invest in fixed deposits.
If he were to invest in the 5-month Fixed Deposit with OCBC, the saver will reap $739.58 or $147.92 per month
On the other hand, if the saver were to invest the $50,000 in the 6-month Fixed Deposit with UOB, the saver will reap $962.50 or $160.42 per month or about 8.5% more.
Hence, I will think that for savers with $50,000 or more to invest in fixed deposits, the UOB Fixed Deposits seems to be a better option.
That’s it for my insights today. I Thank you once again for your support of SG STOCKS INVESTING, your Money and Lifestyle magazine! Connect with me here to follow the daily exciting and useful posts on these two blogs, Thank You for your support!
BINGE READ ALL POSTS!
Visit Home Page for more reads or Connect here!