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Are there advantages in having a fixed deposit account and a savings account?
Why do some people put money into a FD account, instead of putting everything into a savings account (e.g. DBS Multiplier)?
I would like to understand if having a FD account grants some form of interest rate that is more attractive as compared to savings accounts these days - thanks!
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The fundamental difference between fixed deposits and savings accounts is the lock-in period and minimum quantities you will have to meet so as to gain access to an "attractive" interest rate.
It is useful to balance liquidity with yield or upside. With fixed deposits, the main consideration to keep in mind is that you may not have access to your funds when you need them.
Here is some information comparing savings accounts available to Singaporeans so you can make informed decisions: https://dezy.sg/blog/singapore-savings-account-...
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Fixed deposit promise to pay you a fixed interest rate for your tenor. E.g 2 % p.a for 24 months ten...
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Fixed deposit is locking your cash to generate higher interest, but most better rates will need high deposit. For example the best now is BEA which offers 2.88% for a 12 month tenor, but you may need 100K. The next best is HL and SIF 2.75%.
Saving account has a few different type. Personally I don't like my saving accounts to have a lot of hoops to get through like the local 3 bank. Prefer it to be fuss free which generating a decent rate, like SIF GoSaver, RHB High Yield and CIMB Fastsaver.