Dear readers, in my previous sharing, I have shared UOB Fixed Deposit promotional interest rates which were 3.45% per annum from 2 May 2023 to 31 May 2023.
Based on UOB webpage, there are now updated fixed deposit offerings from the bank: the fixed deposit interest rates are now lowered to 3.20% per annum, still for the usual offering of 6-month and 10-month tranches at a minimum deposit of $10,000. This does not come as a surprise for me, since in recent months, banks have been adjusting their fixed deposit interest rates downward.
UOB’s Fixed deposit interest is lower than current OCBC Fixed Deposit (more details here). For deposit of S$20,000 to S$999,999, OCBC is offering a fixed deposit interest rate at 3.30% per annum for a 6-month tenure, which is the only tenure offered by OCBC.
Although the fixed deposit interest from UOB is slightly lower than OCBC’s, UOB offers an option of a slightly longer tenure at 10-months! For savers who are okay with a 3.20% fixed deposit interest to lock in for a longer period, UOB’s fixed deposit proposition is deemed reasonable.
Last but not least let us turn to the next of one of the biggest bank in Singapore, DBS. For DBS Fixed Deposit, DBS is offering a fixed deposit of 3.20% per annum for the following tranches: 12 months/18 months/24 months/36 months/48 months and 60 months (as a note: there are other fixed deposit offerings at 1.85% to 3.15% per annum). Before savers celebrate the long tenures, the fixed deposit promotions from DBS are only for the first $19,999; beyond which the usual board rates of 0.05% per annum will apply.
So, what can we deduce from and make the best of the fixed deposit offerings from the three biggest local banks: DBS, OCBC and UOB? Well, at a quick glance, we note that the fixed interest rates per annum are quite comparable at 3.20% or 3.30% per annum.
If 3.20% per annum is attractive and you have appetite for a long holding period, then UOB’s 10-month tenure may be suitable for you. If you are considering holding your monies for a long time, then DBS Fixed Deposit’s 5-year (60 month) tenure is considered reasonable, compared to the latest Jun 2023 Singapore Saving Bond, which offers 2.81% per annum over 10 years. A 60-month’s holding period may be considered long for fixed deposits, but if the saver caps this 60-month holding to just $19,999 for earning the 3.20% per annum, then the opportunity risk can be considered okay if the saver still have other pots of liquidity to meet both short-term needs and to leverage on investment opportunities if any.
That’s my thoughts on the fixed deposits promotions from the three biggest Singapore banks. Interest rates reflected above are as at this time of writing. Do do your own due diligence when it comes to investing your monies in fixed deposits. Always remember to leave some liquidity to make the best of cash when stock markets correct and when Cash is King!
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