SSB vs Fixed deposit?

With only $45k cash savings, should I put $20k as fixed deposit or SSB instead of sitting it in OCBC 360 account? Any alternatives I should consider?

OCBC 360 Account

Discussion (3)

What are your thoughts?

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Elijah Lee

12 Jan 2020

Senior Financial Services Manager at Phillip Securities (Jurong East)

Hi anon,

With a $70K cap for the bonus interest, I'd recommend keeping your monies in OCBC 360. Putting it into SSBs/FD is only really something you consider if you don't need the monies and you can get more than the interest obtained by leaving it in OCBC.

Try to maximise it if you can, as there are two tiers of interest (less than $35K and more than $35K) and based on hitting $70K interest, the weighted average interest on your whole savings amount is ~1.6%, which is very good for an account that only requires a salary credit and no other criteria.

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Pang Zhe Liang

12 Jan 2020

Fee-Based Financial Advisory Manager at Financial Alliance Pte Ltd (IFA Firm)

Looking at the required lock-in period and yield for Singapore Savings Bonds, you may be better off keeping your money in the bank. This is especially because you have not hit the cap for the account.

Alternatives depends on your goals for the future. If you don't need so much liquidity now, then you should be doing comprehensive financial planning to allocate your money in the best possible manner. Any amount that is not optimised is a wasted opportunity cost.

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