USD Fixed Deposit Rates In Singapore 101
In the ever-changing landscape of financial markets, investors are constantly seeking secure and profitable investment opportunities.
Renowned as a global financial hub, Singapore boasts an incredible banking sector that offers a diverse range of financial products and services. Among the various options available, fixed deposit accounts have gained popularity for their simplicity and low-risk nature.
If you are looking to capitalise on the stability of the United States Dollar while enjoying competitive USD fixed deposit rates in Singapore, this article is for you.
Here at OMY Singapore, you will discover the following:
What Is A Foreign Currency Account?
A Foreign Currency Fixed Deposit Account is a financial instrument offered by banks. It allows individuals and businesses to deposit and hold foreign currency, such as the United States Dollar (USD) for a specified period at a fixed interest rate.
Unlike traditional savings accounts, which typically operate in local currency, foreign currency fixed deposit accounts provide an opportunity to diversify one’s investment portfolio and take advantage of potential currency appreciation.
Usually, banks in Singapore offer a bigger return on longer tenures for USD fixed deposit accounts. It’s also worth noting that there is a minimum deposit of around S$1,000 to S$10,000 of the currency of your choosing.
More From OMY: Ultimate Guide to Best Digital Multi-Currency Accounts in Singapore
What Should You Consider When Opening A USD Fixed Deposit Account?
When investing in any account that offers USD fixed deposit rates in Singapore, here are some factors to consider.
Exchange rate risk
Fluctuations in exchange rates can significantly impact the returns on your investment of your USD fixed deposit. Assess the stability and historical performance of the currency you intend to deposit in. Do not forget to consider factors such as economic indicators, geopolitical events, and central bank policies.
Interest rates
Compare the interest rates offered by different banks or financial institutions for the specific foreign currency you want to deposit. Look for competitive rates that give an attractive return on your best foreign currency fixed deposit Singapore, considering both short-term and long-term options.
Deposit tenure
Determine your investment horizon and choose a suitable deposit tenure for the fixed deposit. Shorter terms offer flexibility, allowing you to access your funds sooner. Meanwhile, longer terms often provide higher interest rates. Consider your financial goals and liquidity requirements before deciding on the deposit tenure.
Financial institution’s reputation
Research the reputation and stability of the bank or financial institution offering the foreign currency fixed deposit. Ensure they are trustworthy, financially sound, and regulated by relevant authorities. Also check their credit ratings and reviews to assess their reliability.
Terms and conditions
Carefully review the terms and conditions associated with the foreign currency fixed deposit account. Pay attention to any penalties or fees for early withdrawals, rollovers, or account closures. Understand the terms governing interest calculations and compounding frequency.
Best USD Fixed Deposit Rates In Singapore
Want to open a fixed deposit account? Here are your top choices.
| Bank | Highest interest rate you can enjoy |
|---|---|
| Bank of East Asia | 0.75% |
| ICBC | 4.85% |
| DBS | 4.99% |
| CIMB | 4.80% |
| Maybank | 4.80% |
Bank of East Asia
With Bank of East Asia, you can open up to 10 currencies and enjoy one of the highest USD fixed deposit rates in Singapore. The tenures for the deposits are also flexible and it has a higher interest rate compared to saving accounts.
After the tenure is done, you can choose from renewal options. Keep in mind that there is a minimum deposit of $10,000 for terms of one month and above, and for those shorter than one month, the minimum deposit is $50,000.
ICBC
For this bank, the best foreign currency fixed deposit in Singapore has a tenor of one month to one year. You may also enjoy the prevailing e-banking promotional rate upon maturity.
The minimum over the counter deposit is $20,000, which can be a little steep for many people. However, the returns make it worth it. If you cannot commit that amount, you can deposit through internet banking since the minimum amount is only $500.
| Tenor | Amount ($500 and above) |
|---|---|
| 1 week | 0.01% |
| 1 month | 4.30% |
| 3 months | 4.85% |
| 6 months | 4.85% |
| 1 year | 4.80% |
| 1 year (e-Banking) | 4.85% |
DBS
Another bank that stands out when it comes to the best USD fixed deposit rates in Singapore is DBS. With the DBS USD fixed deposit rate, you can earn up to 4.86% on your money per annum.
If you want to open accounts in other foreign currencies, you can also choose between 9 choices and easily monitor your account on your app.
Upon the maturity of your USD fixed deposit Singapore account, your deposit will automatically be renewed for the same tenor you initially got at the prevailing interest rate.
| Tenure | <$10,000 | <$25,000 | <$50,000 | <$100,000 | <250,000 | <=$500,000 |
|---|---|---|---|---|---|---|
| 1 day | none | none | none | none | none | none |
| 1 week | none | none | none | none | none | none |
| 1 month | 4.81% | 4.81% | 4.81% | 4.81% | 4.91% | 4.91% |
| 2 months | 4.89% | 4.89% | 4.89% | 4.89% | 4.99% | 4.99% |
| 3 months | 4.80% | 4.80% | 4.80% | 4.80% | 4.95% | 4.95% |
| 6 months | 4.64% | 4.64% | 4.64% | 4.64% | 4.94% | 4.94% |
| 12 months | 4.56% | 4.56% | 4.56% | 4.56% | 4.86% | 4.86% |
CIMB
With this account, you can easily identify your portfolio. It has 7 currencies, including USD. Just like other banks, the CIMB foreign currency fixed deposit will automatically be renewed for the same tenure at the same prevailing interest rate. Keep in mind that this account has a minimum initial deposit of $10,000.
To apply for this account, get a CIMB FastSaver account, then perform a “first time login” in Clicks internet banking. Finally, apply for the foreign currency fixed deposit under the eApplication tab. This bank is offering a huge promotion for online banking. Check it out below.
| Tenure | Interest rate |
|---|---|
| 1 month | 4.70% |
| 3 months | 4.75% |
| 6 months | 4.80% |
| 12 months | 4.80% |
Maybank
This is another awesome choice for those looking for good USD fixed deposit rates in Singapore. If you open a Maybank foreign currency fixed deposit account, you will have a free cheque book, and you can also easily transfer funds in foreign currency to and from your SGD accounts through online banking. This account one of the lowest minimum initial deposits at only $1,000.
| Tenure | Interest rate |
|---|---|
| 1 month | 4.30% |
| 2 months | 4.50% |
| 3 months | 4.70% |
| 6 months | 4.80% |
A Word From OMY
Searching for the best USD fixed deposit rates in Singapore will give you access to a secure and lucrative investment option. Based on the information listed above, you can finally confidently navigate the market and make the best choices that aligns with your financial goals.
More From OMY: Best Singapore Dollar Fixed Deposit Rates
