Q: Can I use CPF funds for a fixed deposit ladder in Singapore?

Yes — CPF Ordinary Account (CPF-OA) funds can be placed in fixed deposits through the CPF Investment Scheme (CPFIS) at approved banks, provided the FD rate exceeds the CPF-OA base rate of 2.5% p.a. Note that CPFIS is not available for CPF Special Account (SA) funds following the SA closure for members under 55 from May 2025. You cannot use CPF Medisave funds for FD placement.

Q: Is FD interest taxable in Singapore?

No — interest income earned on fixed deposits with Singapore-based banks is exempt from income tax for individuals resident in Singapore. This makes FDs tax-efficient compared to some other fixed-income instruments. However, FD interest earned through SRS accounts is subject to tax at withdrawal (at 50% of the prevailing rate, deferred until retirement age), which is still a tax-advantaged outcome.

Question 1

What is the best fixed deposit rate in Singapore in 2026?

Accepted Answer

As at Q1 2026, promotional FD rates in Singapore range from approximately 3.3% to 4.0% p.a. depending on the bank, tenor, and minimum placement amount. Digital banks like MariBank have periodically offered rates above 4% for shorter tenors. Because rates change frequently, always check directly with your bank before placing a deposit. Use this calculator to model the impact of different rates across your ladder rungs.

Question 2

Is a fixed deposit ladder better than a single long-term FD?

Accepted Answer

For most Singapore savers, a ladder is preferable to a single long-term FD because it balances rate capture and liquidity. A single 12-month FD locks in today&#8217;s rate for the full year &#8212; if rates rise, you miss the benefit until maturity. A ladder ensures that portions of your capital mature on a rolling basis, allowing you to reinvest at higher rates if the environment improves, or access funds without penalty if your circumstances change.

Question 3

How many rungs should a Singapore FD ladder have?

Accepted Answer

Most financial practitioners recommend 3 to 6 rungs. A 4-rung ladder with 3, 6, 9, and 12-month tranches is the most common structure in Singapore &#8212; it provides quarterly liquidity while still accessing the 12-month premium rate. If you have a larger amount (above S$100,000), a 6-rung ladder spreading across 3, 6, 9, 12, 18, and 24 months captures the full rate curve and allows you to spread across multiple banks for SDIC coverage.

Question 4

Can I use CPF funds for a fixed deposit ladder in Singapore?

Accepted Answer

Yes &#8212; CPF Ordinary Account (CPF-OA) funds can be placed in fixed deposits through the CPF Investment Scheme (CPFIS) at approved banks, provided the FD rate exceeds the CPF-OA base rate of 2.5% p.a. Note that CPFIS is not available for CPF Special Account (SA) funds following the SA closure for members under 55 from May 2025. You cannot use CPF Medisave funds for FD placement.

Question 5

Is FD interest taxable in Singapore?

Accepted Answer

No &#8212; interest income earned on fixed deposits with Singapore-based banks is exempt from income tax for individuals resident in Singapore. This makes FDs tax-efficient compared to some other fixed-income instruments. However, FD interest earned through SRS accounts is subject to tax at withdrawal (at 50% of the prevailing rate, deferred until retirement age), which is still a tax-advantaged outcome.

Question 6

What is the SDIC protection limit for fixed deposits in Singapore?

Accepted Answer

The Singapore Deposit Insurance Corporation (SDIC) insures deposits &#8212; including fixed deposits &#8212; up to S$100,000 per depositor per Scheme member (i.e., per bank). If you have more than S$100,000 to place, consider spreading your ladder across two or more SDIC member banks to ensure full protection. All major Singapore banks (DBS, OCBC, UOB, Citibank, Standard Chartered, MariBank) are SDIC Scheme members.

Question 7

What happens if I break my FD early in Singapore?

Accepted Answer

Most Singapore banks impose a penalty for premature FD withdrawal &#8212; typically a reduction or forfeiture of interest earned. Some banks may pay a lower &#8220;broken&#8221; rate or zero interest if the deposit is withdrawn before the minimum holding period. This is one of the key reasons to use a ladder: with multiple rungs maturing at different dates, there is always a rung coming due soon, reducing the need to break any single FD early.

Question 8

How does an FD ladder compare to Singapore Savings Bonds (SSBs)?

Accepted Answer

SSBs and FD ladders both offer low-risk, capital-guaranteed returns in SGD, but they serve slightly different purposes. SSBs have monthly liquidity (you can redeem with one month&#8217;s notice), a 10-year maximum tenor with step-up interest, and a S$200,000 cap per person. FD ladders offer higher promotional rates for short tenors, no overall cap, and can be used with CPF-OA and SRS funds. Many Singapore savers hold both &#8212; SSBs for emergency and medium-term savings, and FD ladders for actively managed short-term cash reserves.

Question 9

Which platform is best for managing a fixed deposit ladder in Singapore?

Accepted Answer

For most Singaporeans, DBS digibank, OCBC Online Banking, or UOB TMRW provide the most convenient FD placement experience with auto-renewal options. For an alternative to traditional FDs, cash management accounts from Endowus and Syfe offer competitive yields on short-duration instruments. If you are a MariBank customer, check their latest rates via the MariBank referral page for current promotional offers.

Fixed Deposit Ladder Calculator Singapore 2026

Fixed Deposit Ladder Calculator Singapore 2026

🏢 Fixed Deposit Ladder Setup