Best bank deposits and money market funds

 

"Saving money is easier than earning it."

Rank

Bank

Yearly interest rate (%)

(See footnote below for ranking criteria.)

1

Six funds 

(money market fund, no lock-in: click here)

up to 3.50

(Low min bal and to open)

1

Four banks

(current-linked account, no lock-in: click here)

up to 3.50

(No min bal, requires a bank home loan)

1

Maybank (CPF only

(fixed deposit, 12-month lock-in)

2.75

($30K min bal and to open)

2

Maybank

(internet savings account, 6, 12-month lock-in)

2.38

($50K min bal and to open)

2

Hong Leong Finance

(fixed deposit, 12-mo lock-in)

2.10

($50K min bal and to open)

2

UOB

(fixed deposit, 8-month lock-in)

2.08

($50K min bal and to open)

2

Maybank

(fixed deposit, 6-month lock-in)

2.06

($50K min bal and to open)

2

OCBC

(fixed deposit, 12-mo lock-in)

2.05

($50K min bal and to open)

2

Standard Chartered

(on-line e-savers, no lock-in)

2.00

($50K min bal, and to open)

2

Standard Chartered

(fixed deposit, 12-mo lock-in)

1.82

($50K min bal, and to open)

2

DBS

(fixed deposit, 9 to 12-mo. lock-in)

1.80

($50K min bal and to open)

2

Citibank

(fixed deposit 12-mo. lock-in)

1.75

($50K min bal and to open)

3

HSBC

(fixed deposit, 12-month lock-in)

0.88

($50K min bal and to open)

3

Maybank

(fixed deposit, 1-year lock-in)

0.875

($1K min bal and to open)

3

POSB

(fixed deposit, 1-year lock-in)

0.825

($1K min bal and to open)

3

DBS

(fixed deposit, 1-year lock-in)

0.825

($1K min bal and to open)

3

OCBC

(fixed deposit, 1-year lock-in)

0.80

($5K min bal and to open)

3

Finatiq.com

(fixed deposit, 6-month lock-in)

0.75

($3K min bal and to open)

3

HSBC

(fixed deposit, 1-year lock-in)

0.70

($5K min bal and to open)

Ranking Criteria and Notes

Rankings are based on 5 factors: (i) interest rates, (ii) the lock-in period, (iii) minimum deposit to open an account, (v) minimum balance to maintain an account and (vi) whether the bank auto-renews deposits at its highest prevailing rate and (v) size of penalty (if any) for early withdrawal. 

Notes: (i) (a) The current linked accounts (CLA) charge slightly more than a regular home loan and (b) it is likely that the borrower would not offset the full amount of the home loan with the CLA.  Therefore, even though the average CLA mortgage rate is 3.5 per cent, the CLA deposit rate is scaled down to 3.0 + per cent for reasons (a) and (b). 

(ii) For the on-line e-savings account, the bank charges $5 for each cash withdrawal at its branch.

(iii) Unless otherwise noted, rates shown here require fresh funds. (iv) Figures are rounded to the nearest .01 per cent.


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