Best Fixed Deposit Rates in Singapore yield 3.75% – Where to put cash for yield today – T-Bills vs Money Market Funds vs Singapore Savings Bonds vs Fixed Deposits (May 2024)

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Interest rates person been each complete nan spot of late.

If you callback – successful Jan nan marketplace was pricing successful 7 liking complaint cuts successful 2024.

With basking US ostentation and latest comments from Powell, nan marketplace is now only pricing successful 2 liking complaint cuts successful 2024.

Despite each that, slope fixed deposit liking rates support dropping.

And yet nan astir caller 6-month T-Bills liking rates closed astatine 3.7% – importantly higher than astir slope fixed deposits.

3 things I wanted to talk today:

  1. Best fixed deposit rates successful Singapore coming (May 2024)
  2. Will liking rates spell up aliases down successful 2024?
  3. Where to parkland your rate for output / liquidity coming – T-Bills, Fixed Deposit, Money Market Funds, Singapore Savings Bonds and Savings Accounts etc.

Best Fixed Deposit Rates output 3.35% if you deposit straight pinch nan slope (as of May 2024)

The latest database of Fixed Deposit rates are group retired below.

To summarise, nan champion fixed deposit action if you deposit straight pinch nan slope are:

Best Fixed Deposit Rates output 3.75% if you deposit via Syfe (to get organization fixed deposit rates) (as of May 2024)

If you’re somewhat much adventurous – you tin usage Syfe Cash+ Guaranteed.

Basically you parkland nan rate pinch Syfe, who will past deposit nan rate into a slope fixed deposit.

This allows you entree to organization fixed deposit rates which are importantly higher than nan unit rates above.

If you spell down this path, these are nan latest liking rates connected offer:

  • 3 months – 3.75%
  • 6 months – 3.75%
  • 12 months – 3.6%

  

Just for nosy this was nan liking rates 1 period ago.

Notice really nan short word (3 aliases 6 month) rates person dropped from 3.8% to 3.75%, arsenic nan marketplace prices successful complaint cuts successful 2024.

While nan 12 months has gone up from 3.5% to 3.6%, arsenic nan marketplace prices successful little complaint cuts going forward.

Comparing liking rates for T-Bills vs Fixed Deposits vs Syfe Cash+ Guaranteed (May 2024)

Compared nan 3 options below:

6 months

12 months

Risk Free

T-Bills yields

3.70%

3.60%

Yes

Fixed Deposit (bank)

3.35%

3.20%

Yes (if beneath $100,000 SDIC limit)

Syfe Cash+ Guaranteed

3.75%

3.60%

No

Money Market Funds

3.5 – 4.0%

No

You tin spot really T-Bills and Syfe Cash+ Guaranteed are much charismatic vs accepted fixed deposits.

Money Market Funds (like MariInvest) connection decent yields excessively astatine 3.5% – 4.0%, coupled pinch T+1 liquidity.

So they’re a decent replacement to fixed deposits and T-Bills, but nan yields do up and down complete clip and cannot beryllium “locked in”. They are besides technically not consequence free.

Do statement – Syfe Cash+ Guaranteed (and money marketplace funds) is NOT SDIC insured

To beryllium perfectly clear though, Syfe Cash+ Guaranteed (and money marketplace funds) is NOT SDIC insured.

This intends that dissimilar T-Bills (backed by Singapore government) aliases Fixed Deposit (SDIC insured up to $100,000), Syfe Cash+ Guaranteed is NOT consequence free.

This is made clear by Syfe connected their website:

The rate (for Syfe Cash+ Guaranteed) is parked successful fixed deposits pinch nan underlying bank.

But if nan slope goes under, Syfe arsenic a full would only beryllium insured up to $100,000, which whitethorn not beryllium capable to screen nan losses.

Whereas if you parkland nan rate pinch nan slope straight yourself, you are SDIC insured up to $100,000 (SDIC limits person gone up connected 1 April).

So I time off it to individual investors to determine if they are good pinch this risk, aliases they for illustration thing perfectly consequence free for bid of mind.

Best Fixed Deposit Rates output 3.35% for 6 months – if you deposit straight pinch nan slope (as of May 2024)

Latest database of Fixed Deposit rates are group retired beneath (bold being nan astir charismatic for each tenure).

After nan array I’ll stock my views on:

  1. Are liking rates going up aliases down?
  2. Where to parkland your rate for output / liquidity coming – T-Bills, Fixed Deposit, Money Market Funds, Singapore Savings Bonds and Savings Accounts etc.

Bank

Interest complaint per annum 

Tenure

Minimum amount

SBI

3.35%

6 months

S$50,000

3.05%

12 months

S$50,000

ICBC

3.35% (mobile placement)

3 months

S$500

3.15% (mobile placement)

6 months

S$500

DBS/POSB

3.20%

12 months

S$1,000 (max S$19,999)

Bank of China

3.30% (mobile placement)

3 months

S$500

3.20% (mobile placement)

6 months

S$500

3.10% (mobile placement)

9 months

S$500

3.10% (mobile placement)

12 months

S$500

CIMB

3.25%

3 months

S$10,000

3.20%

6 months

S$10,000

3.20%

9 months

S$10,000

2.95%

12 months

S$10,000

RHB

3.25% (mobile placement)

3/6 months

S$20,000

3.00% (mobile placement)

12 months

S$20,000

Standard Chartered

3.00% 

6 months

S$25,000

Maybank

3.00% (deposit bundle promotion)

12 months

S$22,000

HSBC

3.00% 

3/6 months

S$30,000

Hong Leong Finance

2.90%

3/4 months

S$50,000

2.80%

9/10 months

S$50,000

OCBC

2.80% (online)

6/12 months

S$30,000

UOB

2.70%

6 months

S$10,000 (fresh funds)

2.60%

10 months

S$10,000 (fresh funds)

Citibank

2.50%

3/6 months

S$50,000

Will fixed deposit liking rates spell up aliases down successful 2024?

Here’s what is priced into nan marketplace arsenic of today:

  1. 2 liking complaint cuts successful 2024
  2. With nan first liking complaint trim successful Sep 2024 (followed by Dec 2024)

But it’s reasonably clear from nan past 12 months that cipher has immoderate hint really liking complaint cuts are going to play out.

Where we are coming – pinch each nan uncertainty complete really ostentation will move going forward.

And each nan uncertainty complete really Jerome Powell aliases Janet Yellen are going to respond successful a US predetermination year.

I would return nan supra pinch a patient pinch of salt.

So it would beryllium prudent to dispersed retired your rate complete a different scope of maturities, conscionable successful lawsuit location are immoderate surprises connected liking rates (to nan upside / downside).

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Singapore Savings Bonds are really much charismatic that fixed deposits for tenure much than 6 months – 3.26% output for first year

Note that this month’s Singapore Savings Bonds are really very attractive.

Yields connected nan Singapore Savings bonds are:

  • 3.26% for nan first 6 years
  • 3.33% for 10 years

This is very charismatic and higher than fixed deposits erstwhile you deed nan 12 period and beyond mark.

With nan added use that you tin fastener successful nan liking rates for 10 years.

To nan constituent that I would expect very beardown request for Singapore Savings Bonds this month.

Note that each personification tin use for up to $200,000 Singapore Savings Bonds.

But fixed what is apt to beryllium beardown request for these Singapore Savings Bonds, I’m not judge you’ll spot afloat allotments.

T-Bills, Fixed Deposit, Singapore Savings Bonds and Savings Accounts? How to divided rate betwixt these options?

At a precocious level, these are nan options disposable to you coming for a rate / debased consequence investment:

Yield (indicative)

Liquidity

Risk Free?

High Yield Savings Account (Eg. UOB One)

Good (4%)

Good

Yes if beneath SDIC limit ($100,000)

Money Market Funds (Eg. MariInvest, Fullerton SGD Cash Fund)

Good (3.5 – 4.0%)

Good

No

T-Bills (6-months)

Good (3.70%)

Low

Yes

Fixed Deposit

Average (3.2 – 3.5%)

Average

Yes if beneath SDIC limit ($100,000)

Singapore Savings Bonds

Average (can fastener successful for 10 years) (3.26%)

Good

Yes

What to inquire yourself – divided rate betwixt T-Bills, Fixed Deposit and Savings Accounts?

A batch of you person asked what to see erstwhile deciding really overmuch rate to divided betwixt each of nan pursuing options:

  1. T-Bills
  2. Fixed Deposits
  3. Money Market Funds
  4. High Yield Savings Accounts

The measurement I spot it, it’s broadly a 2 measurement process:

  1. How overmuch liquid rate do you need?
  2. Rest goes into highest output options – based connected your comfortableness level connected risk

Key mobility to inquire – really overmuch liquid rate do you need?

I would opportunity nan cardinal mobility to inquire is really overmuch liquid rate you need, to meet your spending needs nan adjacent 6 months.

Think astir really overmuch you request to spend.

Then deliberation astir really overmuch rate you are expecting to travel successful complete nan adjacent 6 months.

The quality is nan magnitude of liquid rate you would need.

So if each of your spending needs are going to beryllium met by your salary, aliases if a large prize is coming successful – past you tin really tally very small liquid cash.

Whereas if you’re going to bargain a house, a caller car, aliases a large renovation, you’ll request to scheme up and person that magnitude of rate group speech successful liquid cash.

Some guidelines connected liquidity – amended safe than sorry

As a wide statement I would opportunity don’t beryllium stingy pinch liquidity.

It’s 1 of those wherever it’s amended to beryllium safe than sorry.

So aft you tally nan study supra – you’ll want to buffer for unexpected scenarios too.

For illustration a large aesculapian measure that you request to salary upfront, past declare from security after.

A large car repair bill.

A diminution successful stocks that leads you to want to bargain immoderate stocks / REITs.

A nonaccomplishment of job, meaning nary income successful nan short term.

Things for illustration that.

As a wide statement I would opportunity you ever want to person capable liquid rate connected manus to screen 6 months worthy of expenses, arsenic a worst lawsuit scenario.

Liquid Cash should spell into options accessible connected short announcement – savings accounts, fixed deposits, money marketplace funds

Once you person nan number above.

That magnitude of liquid cash, should spell into options that you tin get backmost pinch ideally a time aliases two’s notice.

That will include:

  1. High output savings accounts (eg. UOB One, OCBC 360) – arsenic a savings relationship you tin retreat immoderate time
  2. Fixed Deposits – tin break anytime by telling nan bank, though you will suffer accrued interest
  3. Money Market Funds – they are T+1 liquidity

Number (1) tends to person nan highest liking rates, though pinch nan caller alteration UOB One Account now only pays 4.0% connected $150,000.

That said it’s still higher than T-Bills, for a savings relationship you tin retreat immoderate time.

But I still deliberation this should beryllium nan privilege – and you shouldn’t move connected to fixed deposits aliases money marketplace costs until you’ve maxxed retired this action / group speech capable liquidity.

Singapore Savings Bonds is an outlier, because technically nan money only comes backmost astatine nan commencement of nan adjacent month.

In a worst lawsuit script if you conscionable missed nan redemption window, you mightiness request to hold a full period to get nan money back:

I would opportunity immoderate Singapore Savings Bonds is good arsenic you tin get nan money backmost reasonably quickly, but don’t overdo it and put 90% of your liquid rate into Singapore Savings Bonds.

Rest of nan rate goes into highest output options – based connected your comfortableness level connected risk

Once you person nan supra – nan remainder conscionable goes into nan highest yielding option.

As of today, that’s astir apt T-Bills, followed by Money Market Funds for illustration MariInvest aliases Fullerton SGD Cash Fund.

But Money Market Funds are technically not consequence free, truthful I cognize not everyone is comfortable putting their full nest ovum into thing that is not zero risk.

In which lawsuit you tin see overweighting T-Bills.

But… really overmuch rate to hold, vs stocks aliases REITs aliases existent estate?

Do statement that nan chat supra only addresses wherever to put your cash.

It doesn’t reside nan mobility of really overmuch rate to hold, vs stocks aliases REITs aliases existent estate.

That’s a overmuch harder mobility (that we effort to reply connected nan remainder of Financial Horse).

But agelong and short, I would opportunity it depends connected 2 factors:

  1. Individual consequence appetite
  2. Market conditions

Individual Risk Appetite

Individual consequence appetite is really overmuch consequence you tin take.

If you’re a 62 twelvemonth aged approaching retirement, nan magnitude of consequence you tin return is very different from a 25 twelvemonth aged starting his career.

Life goals matter too.

If you’ve saved up complete a life and yet person capable to spend a comfortable retirement, you whitethorn not want to put each that into precocious consequence stocks and consequence losing it all.

Whereas if your existent superior is very low, you mightiness not mind taking connected higher consequence for nan chance to get awesome returns.

How overmuch consequence to return – only you tin reply this mobility for yourself.

Market conditions

The different facet to see is marketplace conditions.

Yes I cognize this is marketplace timing and all.

But I would opportunity location are immoderate times successful markets for illustration March 2020 aliases 2008/2009.

That arsenic agelong arsenic you person capable rate group speech for spending needs and contingencies, it astir apt makes consciousness to summation consequence vulnerability fixed really inexpensive valuations are.

And vice versa.

But I cognize not everyone is comfortable pinch marketplace timing, and immoderate for illustration to conscionable dollar costs mean sloppy of marketplace conditions.

In which lawsuit you tin disregard this facet and attraction connected consequence appetite above.

This article was written connected 10 May 2024 and will not beryllium updated going forward.

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