I subsequently wrote a blog post with the suggestion for potential depositors to wait a few weeks before putting their money into Singapore dollar fixed deposit accounts as I expect banks to raise their Singapore dollar fixed deposit interest rates to at least 3% this month in October. The Federal Reserve then raised interest rates by 75 basis points two weeks ago and we are now seeing banks offering up to 3.4% p.a. for their Singapore dollar fixed deposit rates which is a far cry from last month’s headline rate of 2.8% p.a.
Singapore's bank rates are benchmarked to the United States' Federal Reserve bank rates.
I have compiled the three banks currently with the highest Singapore dollar fixed deposit rates from my extensive research for your reference below:
UOB Fixed Deposit Rate - up to 3%
Local banking giant UOB has decided up the ante on the 3 main local banks in Singapore by offering the highest rate for its Singapore dollar fixed deposits at 3% - raising its promotional rates with 10-, 12- and 15-month tenors now at 2.8%, 2.9% and 3.0% p.a. respectively - compared to its highest rate of 2.8% p.a. offered last month.
Minimum deposit of $20,000 required
RHB Fixed Deposit Rate - up to 3.4%
The highest rate for Fixed Deposit accounts now at this moment goes to RHB - a Malaysian bank that is offering 3.2% p.a. for their Singapore dollar fixed deposit customers who are willing to stash a minimum of $20,000 for a period of 2 years.
If you are a RHB Premier client, you may even enjoy up to 3.4% p.a. Fixed Deposit interest rate. Minimum deposit of $200,000 for RHB Premier client.
"The Federal Reserve may continue to raise their interest rates basis points in the next few months but it may be lesser basis points as the looming possibility of a mild recession in Europe and America may reduce inflation and with world trade expected to be subdued in 2023 with multiple shocks weighing on the global economy." said Kiwi Lim
"Meanwhile, rental yields for residential properties are also rising in Singapore and currently provides property owners between 3% to 4% yield per annum if not more as we expect rental demand to stay strong into the 3rd qtr of 2023."
Disclaimer: Banks may decide to amend their above bank rates without notice