Can fixed deposit beat inflation in Singapore?

I am a uni student with a bit of savings from over the years. I consider myself quite risk-averse and would essentially just like to beat inflation to preserve the value of my savings. Was wondering if Fixed Deposits are sufficient to beat inflation in Singapore?

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Royalchem

03 Nov 2019

Project Officer at Security Related

Highly unlikely. However, if you are not a risk-taker, it would be better than doing nothing I guess. If you are a moderate risk taker, may consider maybe ETF or fund. If you are willing to read up and learn, then maybe stock

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Elijah Lee

03 Nov 2019

Senior Financial Services Manager at Phillip Securities (Jurong East)

Hi anon,

Just to add on to Kelly's answer, FDs are generally not able to beat inflation, at least in the case of SG. The core inflation rate comes in at around 1.9%, and no or few FDs are able to give that level of return. With the fed interest rates being lowered, FD rates will fall in time to come. SSBs will potentially fare better, so that might be a better option.

If you wish to preserve the value of your savings, you'll have to look at your long term plan. Investments will have to come into the picture, although not all asset classes will suit you if you are risk-averse. Starting by understanding the options available to you so that you can see what might suit you; this is where speaking to an independent advisor will help you to gain clarity and clear any doubts you might have.

If you have any questions, feel free to reply to this post.

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