A guide to fixed deposit rates in Singapore: how they compare to T-bills, Savings Bonds, and cash funds

Singapore's short-term interest rates have drifted lower through 2026, and the returns on cash have moved with them. The US Federal Reserve held its policy rate steady in June, while local benchmark rates eased, and that combination has pulled fixed deposit promotions down from the levels savers grew used to over the past two years.

More broadly, the choice to allocate to a fixed deposit should not be driven by rates, but by the instrument’s alignment with your goals as an investor. Its genuine strength is a known, capital-preserving return locked for a set term. But there is a trade off - in several cases, government instruments and cash management portfolios may offer more flexibility. Ultimately, the sensible decision rests on how soon you may need the money. 

This article keeps a tab on the latest fixed deposit rates in Singapore, explains what you give up in exchange for the guarantee, compares deposits with Treasury bills (T-bills), the Singapore Savings Bond (SSB), and money-market and cash management options. The conclusion makes a neutral case for when a fixed deposit can be considered the right option for you. 

Which banks offer the highest fixed deposit rates right now?

A fixed deposit, sometimes called a time deposit, pays a set interest rate in return for leaving a lump sum with a bank for a fixed period. The rate is agreed upfront and does not change for the tenure. Most promotional rates require "fresh funds" — money not already held with that bank — and a minimum placement.

The table below shows selected promotional rates as disclosed on each bank's own website in early-to-mid July 2026. Rates, tenures, and conditions change frequently, so confirm the current terms on the bank's site before placing funds.

The single highest figure here — 1.75% from Bank of China — requires a placement of at least S$200,000, so it is likely to be out of reach for most savers. The highest broadly available, primary-source-verified rate is closer to 1.50%.

How does a fixed deposit work, what are the main perks and what are you giving up?

The main appeal of a fixed deposit is peace of mind. You know the rate, the maturity date, and the sum you will receive at the end of the tenure. In addition, the principal is protected by the Singapore Deposit Insurance Corporation (SDIC) up to S$100,000 per depositor per bank. For an emergency buffer or a short-dated savings goal, that predictability has potential value.

The trade-off is the lack of flexibility. Your capital is committed for the tenure, and withdrawing early typically means forfeiting most or all of the accrued interest. A fixed deposit also does nothing to protect your purchasing power if inflation rises, and the rate you lock today may look low if rates climb tomorrow — or high if they fall.

Two conditions typically attached to promotional rates deserve attention. First, most require the allocation of fresh funds, so rolling over an existing deposit may not qualify. Second, "up to" rates often blend a low base rate with a bonus, and the effective rate can be lower than the headline. All investors should read the effective, blended rate before committing.

Fixed deposit vs Singapore Savings Bond vs T-bill: which pays more?

For capital-protected, government-backed savings, Singapore offers two attractive alternatives investors should consider. 

The Singapore Savings Bond is a government bond you can hold for up to 10 years, redeemable in any month with no penalty and with interest that steps up the longer you hold. The August 2026 issue offers a ten-year average return of 2.06% per year if held to maturity, with applications closing on 28 July 2026. The minimum is S$500, the maximum holding is S$200,000 per person, interest is exempt from Singapore tax, and redemption is penalty-free — a combination no fixed deposit matches.

The six-month Treasury bill is a short-dated government security sold at a discount. The most recent six-month T-bill auction cleared at a cut-off yield of 1.55% (auctioned 16 July 2026), broadly level with the best six-month fixed deposit. T-bills can also be bought with Central Provident Fund (CPF) or Supplementary Retirement Scheme (SRS) monies, which a fixed deposit generally cannot.

For a short horizon of around six months, a top fixed deposit and a six-month T-bill can provide similar risk-return profiles, and the choice may come down to your liquidity preference and whether you feel more comfortable with the deposit insurance offered by SDIC coverage up to S$100,000 per depositor per bank. For longer-horizon, capital-preserving money, there are potentially better options that harness duration - which may offer higher yields. 

Where do money-market funds and cash management portfolios fit?

Fixed deposits, T-bills, and Savings Bonds all lock your money for a period, or penalise early access. If you want to maintain daily access without a fixed term, money-market funds and cash management portfolios are the relevant comparison.

These invest in short-dated, high-quality instruments and aim to deliver a yield close to prevailing short-term rates while allowing withdrawals at short notice. Singapore-dollar money-market funds currently show indicative net yields ranging from below 1% to around 1.7% per year. Endowus Cash Smart portfolios, for example, show projected net yields of 1.2% (Secure), 1.9% (Enhanced), and 2.3% (Ultra) as of 30 June 2026 (projected performance or returns is not guaranteed to materialise).

The important distinction is the trade-off. Unlike a fixed deposit, these products are not capital-guaranteed and are not covered by SDIC — the yield floats and the value can fluctuate. In exchange, you gain daily liquidity and no lock-in.

A note of caution on currency. Some of the highest cash yields available in Singapore can be on US-dollar funds and deposits, reflecting currently higher US short-term interest rates. For an investor whose goals are in Singapore dollars, moving into US dollars to capture that yield introduces exchange-rate risk. The Singapore dollar is managed against a basket of currencies rather than fixed to the US dollar, so its exchange rate against the US dollar may move over your holding period — and that movement may reduce or even erase the yield advantage. Converting in, and later back, also carries a cost in the buy-sell spread. Unless your goals are themselves in US dollars, the higher rate is a currency decision as much as a return decision.

Investment implications

Fixed deposits are not an obsolete tool, but their appeal should be measured objectively. The case may be compelling in one specific situation: when you are certain you will not need money before a defined date, to the extent that you value a locked, capital-guaranteed figure and want no admin chores. For a six-month horizon, a fixed deposit and a six-month T-bill can both be reasonable solutions. 

For more flexible goals, long-horizon, principal-protected savings may be better served by the Singapore Savings Bond, given its higher average return and penalty-free monetization. An emergency fund that needs daily access may work harder in a money-market fund or a cash management portfolio than in either a near-zero savings account or a locked deposit — provided you accept that these are not capital-guaranteed.

Our advisers can help you match the right cash instrument to your horizon and goals.

Frequently asked questions

Are fixed deposit rates in Singapore going up or down in 2026?

Fixed deposit rates broadly track short-term interest rates, which have eased in 2026. Because the US Federal Reserve has held its policy rate and local benchmark rates have softened, promotional deposit rates have come down from their recent highs. The direction from here may depend on US policy and local liquidity, so rates could move either way.

Is a fixed deposit better than the Singapore Savings Bond?

It depends on factors such as your time horizon, liquidity needs and risk tolerance. For a short, fixed period, when you do not have liquidity constraints, a fixed deposit can be competitive. For longer-horizon, principal-protected savings, the Singapore Savings Bond currently offers a higher ten-year average return, penalty-free monthly redemption, and tax-exempt interest, which many savers may find more suitable.

Is my fixed deposit protected if the bank fails?

Singapore-dollar deposits with a Scheme member are insured by the Singapore Deposit Insurance Corporation up to S$100,000 per depositor per bank. Foreign-currency deposits, structured deposits, and investment products are not covered.

Can I use CPF or SRS to place a fixed deposit?

For CPF, it is possible in principle but not at present rates. Some banks accept SRS funds for deposits, but the more common CPF- and SRS-eligible, capital-preserving options are Treasury bills and, for SRS, the Singapore Savings Bond. Check the specific product terms before you commit.