BANKING

Fixed Deposit Rate Singapore: How Banks Set Them and Where to Find the Best One in 2026

Last updated: August 2026

A fixed deposit rate is the fixed annual interest a bank pays for locking your SGD savings for a set tenure, from one month to several years. Rates move with the Singapore Overnight Rate Average (SORA) and each bank’s funding needs, and as at August 2026 range from roughly 1.00% to 1.70% p.a. for mainstream 6–12 month placements.

Not financial advice. All figures for educational reference only. Data as at August 2026.

Key Takeaways

  • As at August 2026, CIMB’s promotional 9- and 12-month rate of 1.70% p.a. (minimum S$10,000) leads the mainstream board; UOB offers up to 1.30% p.a. on 12 months, OCBC around 1.20%–1.25% p.a., and DBS around 1.00% for smaller amounts.
  • Fixed deposit rates broadly track SORA and each bank’s need to fund its loan book, so they move up or down with the interest rate cycle, unlike a savings account’s headline advertised rate which can be stickier.
  • Breaking a fixed deposit before maturity typically forfeits most or all of the promised interest, so it should only be funded with cash you won’t need before the tenure ends.
  • SGD fixed deposits are covered by SDIC deposit insurance up to S$100,000 per depositor per bank, combined with your other insured deposits at that bank.
  • Promotional fixed deposit rates are usually reserved for new or fresh funds with minimum placement amounts, commonly S$10,000–S$20,000, and the headline rate may not apply to smaller sums.

What Is Fixed Deposit Rate Singapore?

A fixed deposit, sometimes called a time deposit, is a savings product where you commit a lump sum to a bank for a fixed tenure — commonly 1, 3, 6, 9 or 12 months, though longer tenures exist — in exchange for a guaranteed interest rate for that period. Unlike a regular savings account, the rate on a fixed deposit doesn’t move once you’ve placed the funds, and you generally can’t withdraw early without losing most of the promised interest. Banks use fixed deposits as a funding source: the interest they offer depends on how much they need SGD liquidity at that moment, which in turn is influenced by SORA (Singapore’s key overnight interest rate benchmark, which replaced SIBOR), broader monetary policy, and competitive pressure from other banks and digital banks. Fixed deposits matter to Singapore savers because they offer a capital-guaranteed, SDIC-insured way to earn a known return over a known period, without the market risk of bonds, T-bills or equities.

How Does Fixed Deposit Rate Singapore Work in Singapore?

Singapore’s fixed deposit market includes the three local banks (DBS, OCBC, UOB), several foreign and mid-sized banks (CIMB, Maybank, RHB, Bank of China, ICBC), and digital banks (GXS, Trust, MariBank, though these focus more on savings accounts than FDs). Rates change frequently, often driven by promotional campaigns with limited windows and minimum placement requirements. As at August 2026, CIMB re-cut its online SGD board on 7 August to 1.70% p.a. on both 9- and 12-month tenors (1.75% for Preferred Banking clients), with a minimum placement of S$10,000, making it the highest mainstream rate available. UOB’s best rate sits around 1.30% p.a. for 12 months, OCBC offers roughly 1.20% p.a. (online) to 1.15% (over the counter) for 12 months with a S$20,000 minimum, and DBS’s standard rate for smaller placements (S$1,000–S$19,999) is around 1.00% p.a. Rates are always subject to change and should be verified directly with each bank before committing funds.

Bank Approx. Rate (12-month, Aug 2026) Minimum Placement Notes
CIMB 1.70% p.a. (1.75% Preferred) S$10,000 Online promo, 9- and 12-month tenors, window to 31 Aug 2026
UOB Up to 1.30% p.a. Varies Best rate typically on 12-month tenor
OCBC 1.15%–1.25% p.a. S$20,000 Online rate slightly higher than over-the-counter
DBS Up to 1.00% p.a. S$1,000 Lower minimum, generally lower headline rate

Source: The Kopi Notes analysis, MAS/CPF Board/SDIC/LIA Singapore public guidance, August 2026.

Fixed Deposit Rate Singapore Example

A saver placing S$20,000 into CIMB’s 12-month promotional fixed deposit at 1.70% p.a. would earn approximately S$340 in interest over the year, before any tax considerations (interest income is generally not taxed for individuals in Singapore). If the same S$20,000 were instead placed at DBS’s standard 1.00% p.a. rate, the return would be roughly S$200 — a S$140 difference simply from choosing the higher-rate promotional board. Breaking either deposit at, say, the 6-month mark would typically forfeit most of the accrued interest under standard early-withdrawal terms, illustrating why fixed deposits suit money you’re confident you won’t need before maturity.

Advantages of Fixed Deposit Rate Singapore

  • Capital guaranteed and SDIC-insured. Your principal is protected up to S$100,000 per bank under Singapore’s Deposit Insurance Scheme, with no market risk to the deposit itself.
  • Predictable, locked-in return. Once placed, the rate doesn’t change for the tenure, unlike a savings account’s bonus-interest structure which can be revised.
  • No market risk. Unlike bonds or T-bills traded on the secondary market, a fixed deposit’s value doesn’t fluctuate before maturity.
  • Good for short-term parking. Ideal for cash you’ll need within a defined window, such as funds earmarked for a property down payment or a known upcoming expense.

Risks and Limitations

  • Opportunity cost versus SSBs and T-bills. In some rate environments, Singapore Savings Bonds or Treasury Bills offer comparable or better after-cost returns with more flexibility to exit (SSBs) or slightly better liquidity via the secondary market (T-bills).
  • Early withdrawal penalty. Breaking a fixed deposit before maturity typically forfeits most or all of the promised interest, and some banks may not return even the base savings-account rate.
  • Inflation can outpace the rate. At sub-2% rates, a fixed deposit may not keep pace with Singapore’s cost-of-living inflation over the tenure.
  • Rates change frequently. Since promotional rates are often time-limited, savers need to actively re-shop or “ladder” deposits across renewal dates to avoid rolling over into a lower rate automatically.

Fixed Deposit vs Singapore Savings Bond (SSB) vs Treasury Bill (T-bill)

Feature Fixed Deposit Singapore Savings Bond Treasury Bill
Issuer Commercial bank Singapore Government (MAS) Singapore Government (MAS)
Tenure 1 month–several years Up to 10 years, redeemable anytime 6 months or 1 year, fixed
Early exit Interest forfeited Redeem any month, no penalty Sell on secondary market (SGX)
Rate structure Fixed for the tenure Step-up, averages higher over time Fixed at auction, single payout at maturity
Insurance/Guarantee SDIC-insured up to S$100,000 Full Singapore Government backing Full Singapore Government backing

Source: The Kopi Notes analysis, MAS/CPF Board/SDIC/LIA Singapore public guidance, August 2026.

The Bottom Line

For Singapore savers, a fixed deposit is a simple, capital-guaranteed way to earn a known return on cash you won’t need before maturity — the rate you get depends heavily on timing and shopping around, since promotional boards like CIMB’s can pay meaningfully more than a standing DBS or OCBC rate for the exact same tenure.

Frequently Asked Questions

What is the best fixed deposit rate in Singapore right now?
As at August 2026, CIMB’s promotional online board offers 1.70% p.a. on 9- and 12-month tenors (1.75% for Preferred Banking), the highest among mainstream banks, with a S$10,000 minimum placement and a limited promotion window. Rates change frequently, so always verify current rates directly with the bank.
Is my fixed deposit protected if the bank fails?
Yes, SGD fixed deposits at Deposit Insurance Scheme member banks are insured by SDIC up to S$100,000 per depositor per bank, combined with your other insured deposits at that same bank.
What happens if I withdraw my fixed deposit early?
Most banks will forfeit most or all of the promised interest if you break a fixed deposit before its maturity date, and in some cases return less than the standard savings account rate. Always check the specific bank’s early-withdrawal terms before placing funds.
Are fixed deposit interest earnings taxed in Singapore?
Interest income earned by individuals from bank deposits in Singapore is generally not subject to income tax, though this depends on your specific circumstances and it’s worth confirming with IRAS guidance if in doubt.
Should I choose a fixed deposit or a Singapore Savings Bond?
It depends on your need for flexibility. A fixed deposit locks in a fixed rate for the full tenure with a penalty for early exit, while an SSB lets you redeem any month without penalty and has a step-up rate structure that rewards holding longer. Compare the current best FD rate against the SSB’s average return over your intended holding period.
Do I need a minimum amount to open a fixed deposit?
Yes, most banks require a minimum placement, commonly ranging from S$1,000 at DBS for standard rates up to S$10,000–S$20,000 for the best promotional rates at banks like CIMB and OCBC.