As interest rates soar, will Singapore's SMEs be affected? - Straits Times Photo
It was reported early last month in mainstream media that long queues were formed outside banks as massive crowds queued for more than 4 hours to deposit their savings for up to 2.8% p.a. on their Singapore dollar fixed deposits.
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:
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:
| Maybank Fixed Deposit Rate - up to 3.05% Malaysian bank - Maybank is offering promotional rate for its Singapore dollar fixed deposits on a 6-month tenure @ 2.80% p.a., 9-month tenure @ 2.90% p.a., 12-month tenure @ 3.00% p.a. and 15-month tenure @ 3.05%. Minimum deposit of $20,000 required |  |
 | 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. |  |
Even though Singapore banks are stepping up their Fixed Deposit interest rates, real estate professional Kiwi Lim does not expect local banks to raise the Fixed Deposit rates to more than 3.8% by the end of the year as a high interest rate will also increase the financial burden of our local businesses, especially small and medium enterprises.
"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
"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
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