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Fixed Deposits

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Fixed Deposits

Bank Account

CIMB

DBS Multiplier

Savings

CIMB currently offers the highest no strings attached savings account at 1%. However if you are very certain that you will have no need for the money before 6 months, consider a fixed deposit. CIMB rates for FDs are also competitive.

Fixed Deposits

Pat
Pat
Level 4. Prodigy
Answered on 01 Jul 2019
Hiya, I think it is pretty decent if you are risk averse. Comparing to the July edition SSB of 1.93% for first year, if you withdraw it after 12 months, the interest you get is $193 for a purchase of $10000. Subtracting away $4 for application and early withdrawal fee, you get $189 which is an effective interest of 1.89% (gets closer to 1.93% if you make bigger deposits). FD is comparable. Will recommend the FD if is easier for you to apply + you are making a small deposit. (CIMB has 12 months @ 1.85%) If you don't mind holding the $$ in SSB for longer or you are making a bigger deposit, will recommend SSB.

Fixed Deposits

Interest Rates

Forex (FX)

Cedric Jamie Soh
Cedric Jamie Soh, Director at Seniorcare.com.sg
Level 4. Prodigy
Answered on 07 Jun 2019
The risk is miniminal for all deposits made in banks operating in Singapore due to stringent criteria by MAS. MAS is very strict on allowing banks for retail license . Another advantage is ICBC is one huge bank from China . This is not a small bank. As long as it is Singapore dollar deposits (and not structural products), you can check whether it is under SDIC deposit scheme where up to $75,000 SGD is covered if there is a bank run (bank failure). https://www.sdic.org.sg/smlist/dischememembers ICBC is a member, as all local banks are. Higher interest rate for USD is offered by all banks, and ICBC may be just offering it higher than the other banks, as they are not as recognised as UOB / DBS or OCBC. Heck, it is not even as recognised as other foreign banks such as Maybank, SCB, Citibank or HSBC. Hence they have no choice but to offer a higher USD interest rate. The risks for USD deposits = exchange rate risk - u get higher returns, but may be later your USD is worth less SGD, then its bad. thats the biggest risk i feel. Another risk is ICBC folds up? I can't comment since I am not a bank expert. Of course Singaporeans will always feel not as secured with ICBC or other foreign banks than local banks. That is why local banks always offer less. Because they can.

Investments

Property

Singapore Saving Bonds (SSB)

Fixed Deposits

Right now, there are plenty of short term endowment policies giving pretty good rates for 3 year savings at 2.2% and above. SSB is at 1.88%. FD probably lower. If I need the money in that short amount of time, I wouldn't expose it to equity investments.

Savings

Forex (FX)

Fixed Deposits

Investments

Coversion rates between currencies will fluctuate. If your risk profile is not comfortable with it, you may want to consider keeping it in SGD instead. FX investment tend to have more volatility as either currencies can rise or fall. I myself, to not do fx investment due to this nature. You may want to consider your desired outcome and put it against the risks to determine if you want to stay invested or not.

Savings

Investments

Fixed Deposits

If you really know when it's going to crash, then you should buy an Inverse Tracker. Market go down x%, your fund goes up x%. But I suggest not timing the market. We've been thinking market gonna crash since 2016. You can pivot to a more defensive portfolio, but maybe try not to exit the market in total.

Investments

Savings

Loans

REITs

Bonds

Fixed Deposits

It would depend on the % of your loan. I'd clear anything higher than 4% per annum. For your HDB loan, instead of trying to clear it quick, just switch from paying with CPF to paying with cash. Btw, Bonds and FD will only give you about 1.5-4% return. Clearing your loan would also give you a similar "return".

Fixed Deposits

Savings

Kenneth Lou
Kenneth Lou, Co-founder at Seedly
Level 8. Wizard
Answered on 07 Apr 2019
Update 2019: The new amount is $75,000 not the $50,000 which was previously insured. (as effective on 1 April 2019) What this means in simple english: Your deposits in your bank account is insured up to $75,000. So if the bank goes bankrupt, this is the amount which you can get back from this organisation. The SDIC was set up to protect the core savings of small depositors in Singapore in the event a full bank or finance company fails. ! Singapore consumers enjoy the benefits of a sound banking system. Banks and finance companies licensed in Singapore are supervised by the Monetary Authority of Singapore (MAS). It is MAS' aim to ensure the stability of the banking system in Singapore and to require financial institutions to have sound risk management systems and adequate internal controls. However, MAS does not guarantee the soundness of individual financial institutions. Therefore, a Deposit Insurance Scheme has been set up to protect the core savings of small depositors in Singapore in the event a full bank or finance company fails. You can read more here: https://www.sdic.org.sg Fun fact: The increased coverage amount will fully insure more than 90 per cent of depositors, the MAS said.
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Fixed Deposits

Savings

Investments

You need compounded growth over a long term to grow your wealth. Using high interest savings account, CPF, endowment plans are safe ways to find compounded growth with minimal risk. If you'd like to start investing, you should start by opening a managed global portfolio either set up by a Financial Advisor or a Robo Advisor. As long as you stay invested, your money will quickly compound and your 20k will start doubling every 10 years or so.

Fixed Deposits

Investments

Singapore Saving Bonds (SSB)

Richard Woon Tian Jun
Richard Woon Tian Jun
Level 6. Master
Updated on 03 Apr 2019
Depends on the time horizon of your investment, but even then I am still leaning towards SSBs. SSBs have that unique level of liquidity not present within many of the other types of fixed income securities and savings accounts. SSBs in this month (May 2019 issuance) is starting at 1.95% per year, accelerating to 2.49% on the 10th year and having an average yield of 2.16%. The starting return already can kick most of the fixed deposit accounts provided by the local banks in Singapore to the curb, as they usually offer a 0.5% interest rate for a 6 months~ 24 months timespan. Not only that, the added advantage you can draw out your SSB principal almost any time after you put in, principal guaranteed, is a free insurance stamp of approval by one of the world's strongest governments in the debt repayment department. Can't get any better than that! SSBs website: http://www.sgs.gov.sg/savingsbonds/Your-SSB/This-months-bond.aspx Fixed Deposits scanner: https://www.imoney.sg/fixed-deposit Note: The Fixed deposits are per annum - meaning that the interest rate displayed is not the actual return you will get if you are getting a FD of less than 1 year. so always be careful of big numbers, they tend to be hiding something the more attractive it is! Example: CIMB FD account of 1.75% p.a for 6 months =/= 1.75% returns on investment!
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