Advertisement
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!
14
Discussion (14)
Learn how to style your text
Reply
Save
Both serve different purposes, FD rate is higher than SA. Not everyone have or can achieve those conditions set by eg. DBS Mutliplier.
Reply
Save
FD generally gives a higher interest rate than savings account. It is also less risky than putting money in other forms of investment. But you have to hold on to maturity in order to receive the full interest sum.
Reply
Save
Fixed deposit(FD) also known as time deposit is when you lock a sum of money with an entity(government, coporations, banks) in exchange for higher interest rates than what savings account offer.
ā
Disadvantage of FD: Illiquid, your money is locked until its maturity. If you choose to withdraw before the maturity date, you will not receive the interest and may inccur transaction fees.
ā
Advantage of FD: Higher interest rates than what common savings account offer
ā
Disadvantage of savings account: Lower interest rates than FD
ā
Advantage of savings account: You can choose to withdraw your money anytime without constraints and inccuring extra charges for any uses.
ā
You should put only a portion of your money into FD since you may not be able to touch the money within the next few years (usually 5-10 years).
Reply
Save
Jonathan Chia Guangrong
17 Sep 2018
SOC at Local FI
Both instruments serve different purposes. FDs incentive you to leave the money locked in for a sele...
Read 8 other comments with a Seedly account
You will also enjoy exclusive benefits and get access to members only features.
Sign up or login with an email here
Write your thoughts
Related Articles
Related Posts
Related Products
4.4
321 Reviews
Up to 4.10% p.a.
INTEREST RATES
$0
MIN. INITIAL DEPOSIT
$0
MIN. AVG DAILY BALANCE
4.8
782 Reviews
4.7
212 Reviews
Related Posts
Advertisement
Soemtimes dbs multipler has many hurdles to get the right rates.