I used to have fixed deposits in my youth as I simply do not know how to indulge in stock market trading. (Plus my capital was rather pitiful)
Nowadays I do not advocate fixed deposit due to the low interest rate climate. In fact, you are losing money with inflation rate higher than the current interest rate. Still it is good to keep a small sum of money in case of emergency.
Of course, for investors who are waiting for a good time to enter the property market / or stock market (ie, they are waiting for markets to crash), cash is still king.
Here are some of the latest Fixed Deposits offer in Singapore.
Usually Standard Chartered, Maybank and UOB fights pretty hard for FD savers.
Standard Chartered Bank's Step Up Time Deposits.
The longer you leave the money there, the higher the interests rate will.... Step Up.
Step Up offers are good as it offers you liquidity, you do not have to worry about losing interests forgone if you take out the cash for some investment buys at some unanticipated time later. You still get interest, though at a lower rate.
If you do not need the cash, it will just gather higher interest rate.
From ANZ, we have "Step-Up Time Deposit"
Interest rate is up to 1.6% pa if you deposit it for at least 10 months, making it an effective interest rate of 1.09% for SGD $150,000 and above.
Or an effective rate of 0.90% for below that amount.
UOB is offering 1% for a 7-months deposit, for October UOB promotion.
Maybank offering 0.9% pa for 6 month deposits for October promotion, it seems like a direct challenger to ANZ's Step up Time Deposit. Of course, if you can wait one more month for a 7mth deposit, I would say go for the UOB plans above.
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