But in light of the competition, domestic banks also have to ramp up their game, experts said. “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,” Mr Tan added.įoreign banks are usually more aggressive in the fight for deposits, as their smaller deposit bases mean they need to balance liquidity and cost of funding visibility in a rising rate environment. While banks make swift adjustments to their borrowing rates, they also have to remain competitive in the space of deposits.

“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,” said Mr Tan Chin Yu, a senior client adviser at wealth advisory firm Providend.

These promotions, which are seeing rates being revised every month, come as global central banks go on a rate-hike race to combat soaring inflation. Lenders such as UOB, Maybank, RHB and HSBC offer varying tenors ranging from four to 10 months at returns as high as 2.9 per cent per annum. There are more choices for consumers looking at durations less than a year. For those who can park their cash for a slightly longer period, RHB is offering a return of up to 3.2 per cent for 24 months. The last time interest rates on 12-month deposits went above 3 per cent was in November 1998 when banks offered 3.11 per cent, according to data from the Monetary Authority of Singapore.īeyond 12 months, promotional rates for a 15-month duration are going at 3 per cent and 3.05 per cent at UOB and Maybank, respectively. These rates are the highest in almost 24 years. Other options from OCBC, UOB, RHB, HSBC and Standard Chartered Bank range from 2.65 per cent to 2.9 per cent. UOB fired the first salvo on Monday (Oct 3) and since then, more lenders have announced their latest deals for the month of October.įor a 12-month fixed deposit, Maybank currently offers the highest rate at 3 per cent per annum. SINGAPORE: Fixed deposit rates in Singapore have been on the rise, with some hitting levels unseen in almost 24 years, as banks keep up with their aggressive promotions.

Rhb fixed deposit promotion 2021