By EugeneA Singapore fixed deposit rate looks simple — one number, "% p.a." — but the figure in the ad often isn't what lands in your pocket. Here's how to read it properly, in plain English.
Headline rate vs effective rate
This is the big one. Many promotions advertise an "up to" rate that's higher than what you'll really earn. It usually means the rate steps up over the term — lower at the start, reaching the headline only near the end. Average it across the whole period and you get the effective rate, which is what you actually take home.
For example, a bank might headline 1.65% for 12 months, but the effective rate works out to 1.50%. On our fixed deposit comparison we rank by the effective rate, so every number is what you'd genuinely get.
Fresh funds only
Most of the best rates apply only to new money brought into the bank — cash already sitting in an account with them usually won't qualify. If you're moving an existing deposit around, check whether it counts as "fresh funds" first.
Tenure — how long you lock it up
The rate is tied to the term, usually 6 or 12 months. Longer isn't automatically higher; banks push whichever tenure their current promotion favours. And note the catch: withdraw early and you often forfeit most or all of the interest.
Minimum deposit
Entry points range from as little as S$500 (Bank of China) up to S$25,000. A brilliant rate you can't meet the minimum for isn't a brilliant rate for you.
Customer tier
Some of the flashiest numbers are only for Priority or Private banking clients. A headline "1.60%" can be 1.30% for an ordinary customer — always check which tier a rate is for.
The one number that matters
Cut through all of it by looking at the effective rate for the tenure, minimum and tier you actually qualify for. That's the honest comparison, and it's exactly how our Singapore fixed deposit comparison is built. Want more flexibility, or a shot at a higher rate with conditions? Compare high-interest savings accounts or the government-backed Singapore Savings Bonds.