SG Banks offer new promotions to stay competitive

Interest rates at a 24-year high, says MAS

Singapore. As borrowing interest rates become unprecedented, banks are trying to ease the burden on customers by offering aggressive fixed deposit rate promotions.

On 3 October, UOB was the first one to announce its latest deals. This was followed by Maybank, OCBC, HSBC, and Standard Chartered.

Currently, Maybank offers the highest rate at 3% p.a. Other banks range between 2.65% to 2.9% p.a. The last time interest rates were this high was in November 1998.

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Take a look at the new promotional rates offered by banks for October.

Min. placement Tenor Promotional rates (p.a., as of 6 October)
UOB S$20,000 10 months
12 months
15 months
2.8%
2.9%
3%
OCBC S$20,000 12 months 2.9%
Maybank S$20,000 6 months
9 months
12 months
15 months
2.8%
2.9%
3%
3.05%
RHB S$20,000 6 months
12 months
24 months
2.2-2.3%
2.7-2.8%
3.1-3.2%
Standard Chartered S$25,000 12 months 2.65-2.7%
HSBC S$30,000 4 months
7 months
12 months
2.2%
2.5%
2.8%

Keep in mind that for UOB, OCBC, SC, and HSBC, the rates are only valid for fresh fund placements. Meanwhile, RHB and SC offer higher rates for online placements.

According to DBS, customers prefer when the fixed deposits are pegged to board rates since they have more peace of mind when deposits reach maturity.

“As the concern on inflation is pressing, the speed of increase (in interest rates) has been quick as well, hence you can observe how fast the banks are keeping up,” stated senior client adviser Mr Tan Chin Yu.

Although the borrowing rates are now extremely high, the space of deposits is becoming a great space.

“Previously when interest rates globally were low, banks were lending out at low rates so they have no room to raise interest rates when it comes to fixed deposits … But now, they can raise rates to attract more depositors and bring in more funds,” said Mr Tan.

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