Fixed deposits, often considered one of the safest and most straightforward investment options, continue to be a popular choice for Singaporeans seeking capital preservation with predictable returns. In 2025, with global economic fluctuations and interest rate changes, many are seeking clarity on where to place their hard-earned savings. This comprehensive guide delves into the best fixed deposit (FD) rates in Singapore, what affects them, and how to choose the right one for your financial goals.
Understanding Fixed Deposits
Fixed deposits, also known as time deposits, are financial instruments offered by banks and financial institutions where an individual deposits a sum of money for a fixed period at a predetermined interest rate. Unlike savings accounts, fixed deposits offer higher returns due to the reduced liquidity—they require the funds to be locked in for a specific term.
Key features of fixed deposits include:
- Guaranteed returns over a defined period
- Minimal risk, backed by the Deposit Insurance Scheme (up to S$75,000 per depositor per bank)
- Varying tenures ranging from one month to several years
- Penalties for early withdrawal, typically in the form of reduced or forfeited interest
Factors Influencing FD Rates in Singapore (2025)
The interest rates for fixed deposits fluctuate based on several macroeconomic and institutional factors:
- Monetary Policy by MAS: The Monetary Authority of Singapore (MAS) indirectly influences deposit rates through its monetary policies and stance on the Singapore dollar.
- Global Economic Trends: Inflation, recession fears, or rising interest rates in the US or China can ripple through to Singapore’s banking rates.
- Banking Competition: Banks often adjust their FD rates to remain competitive, especially digital and foreign banks looking to capture market share.
- Liquidity Needs of Banks: Banks with greater demand for cash may offer more attractive FD rates to attract deposits.
Best Fixed Deposit Rates in Singapore (June 2025)
Let’s take a closer look at some of the most attractive fixed deposit offerings in Singapore as of June 2025. Note that these rates are subject to change and often depend on deposit amount, customer status, and tenure.
1. CIMB Bank
- Interest Rate: Up to 3.55% p.a.
- Minimum Deposit: S$10,000
- Tenure: 6 to 12 months
- Key Highlights: Competitive rates and promotions for new funds; no monthly account fees.
2. RHB Bank
- Interest Rate: Up to 3.50% p.a.
- Minimum Deposit: S$20,000
- Tenure: 12 months
- Key Highlights: Good option for longer-term lock-ins; solid reputation for customer service.
3. Maybank
- Interest Rate: Up to 3.45% p.a.
- Minimum Deposit: S$20,000
- Tenure: 12 months
- Key Highlights: Offers promotional bundles for customers who also use investment services.
4. HSBC
- Interest Rate: Up to 3.30% p.a.
- Minimum Deposit: S$30,000
- Tenure: 6 to 12 months
- Key Highlights: Best suited for high-net-worth individuals and Premier Banking customers.
5. DBS / POSB
- Interest Rate: Up to 2.80% p.a.
- Minimum Deposit: S$1,000
- Tenure: 12 months
- Key Highlights: Ideal for mass market with low minimum; strong digital services.
6. OCBC Bank
- Interest Rate: Up to 2.85% p.a.
- Minimum Deposit: S$5,000
- Tenure: 6 to 12 months
- Key Highlights: Flexible terms and frequent promotional rate changes.
7. UOB
- Interest Rate: Up to 3.00% p.a.
- Minimum Deposit: S$10,000
- Tenure: 10 to 12 months
- Key Highlights: Reliable traditional bank with decent digital integration.
8. Standard Chartered Bank
- Interest Rate: Up to 3.40% p.a.
- Minimum Deposit: S$25,000
- Tenure: 12 months
- Key Highlights: Tailored offerings for Priority Banking customers.
Comparison Table: Fixed Deposit Rates (2025)
| Bank | Max Interest Rate (p.a.) | Min. Deposit | Tenure |
| CIMB | 3.55% | S$10,000 | 6–12 months |
| RHB | 3.50% | S$20,000 | 12 months |
| Maybank | 3.45% | S$20,000 | 12 months |
| Standard Chartered | 3.40% | S$25,000 | 12 months |
| HSBC | 3.30% | S$30,000 | 6–12 months |
| UOB | 3.00% | S$10,000 | 10–12 months |
| OCBC | 2.85% | S$5,000 | 6–12 months |
| DBS/POSB | 2.80% | S$1,000 | 12 months |
Tips for Choosing the Best Fixed Deposit
1. Match Tenure to Your Needs
Ensure that the duration of the fixed deposit aligns with your financial goals. For example, don’t lock away emergency funds in a 12-month FD if you may need access within six months.
2. Look Beyond the Interest Rate
A slightly higher interest rate may come with stricter terms or higher penalties for early withdrawal. Always read the fine print.
3. Consider Promotional Rates
Some banks offer promotional FD rates for new customers or funds. These can be significantly higher but may be limited to short durations or come with conditions.
4. Leverage Laddering Strategy
Laddering involves splitting your FD into multiple tenures (e.g., 6, 9, 12 months) to maintain liquidity while still earning competitive returns.
5. Watch for Auto-Renewal Clauses
Many FDs are automatically renewed at maturity—but often at lower prevailing rates. Always review your FD upon maturity to ensure your funds are optimally invested.
Are Fixed Deposits Still Worth It in 2025?
The simple answer: Yes, especially for conservative investors and retirees seeking capital protection. While inflation can erode purchasing power, many fixed deposits in 2025 offer rates above 3%, which is relatively attractive in a stable financial system like Singapore’s.
However, it’s important to compare FDs to other low-risk alternatives:
- Singapore Savings Bonds (SSBs) now offer around 3.2%–3.4% yields for 10-year holding periods.
- High-Interest Savings Accounts (like UOB One, DBS Multiplier, OCBC 360) can offer similar or even better returns, albeit with spending or transaction requirements.
Thus, a diversified strategy involving fixed deposits, SSBs, and savings accounts may offer optimal returns while managing risk.
How to Open a Fixed Deposit in Singapore
Opening an FD account is relatively straightforward. Here’s a quick overview:
- Choose your bank and compare rates and terms.
- Decide the tenure and deposit amount.
- Prepare your documents (NRIC or passport, proof of address, and bank account info).
- Apply online or at a branch. Most major banks now allow digital FD creation through their banking apps.
- Fund the deposit, either via internal transfer or cash/cheque.
Conclusion
Fixed deposits remain a solid, low-risk financial product for Singaporeans in 2025. With some banks offering rates upwards of 3.5% p.a., savvy savers can lock in attractive returns for short- to medium-term capital preservation. By carefully comparing rates, considering tenure flexibility, and avoiding hidden pitfalls, you can make informed decisions and ensure your savings work harder for you.
Whether you’re parking a lump sum temporarily or using it as part of a broader wealth strategy, fixed deposits are still very much relevant—especially when managed wisely.
