Suddenly so many banks are having promotions for their time deposits by offering higher interest rate to entice you to park your money with them.
It is about 1% p.a. for quite a long time. That’s why I got interested when they advertise on the newspapers!
Some of the banks are Maybank, Standard Chartered and ICICI Bank.
I am interested in only 2 of them:
- Maybank Singapore Dollar Time Deposit
- Standard Chartered Step-Up Time Deposit
Why am I interested in them?
It’s because normal savings account only gives 0.05% p.a. interest and the highest savings account interest I can find is 0.8%p.a. Since the money is already sitting in the bank, might as well make it work harder!
Maybank Singapore Dollar Time Deposit
Standard Chartered Step-Up Time Deposit
As you can see from the tables above, the interest given by both banks is almost similar at first glance.
You need to look carefully though.
Maybank is offering a fixed interest while Standard Chartered is offering Step-up interest, which means the average interest is actually lower than indicated [refer here].
I am more comfortable with 24 months tenure, and Maybank is already giving higher interest than Standard Chartered. Maybank Singapore Dollar Time Deposit is the winner here.
1.45% p.a. of $25000 for 24 months = $725 (interest for parking $25000 with maybank for 2 years)
0.05% p.a. of $25000 for 24 months = $25 (interest for parking $25000 with normal savings account for 2 years)
I hope you can see the difference here ($700 difference!).
You need to read the terms and condition carefully before deciding where to park your money.
One plus point about Maybank is that they don’t charge premature withdrawal fee, while Standard Chartered do (ouch!).
Hurry up while the promotion last.
Happy Chinese New Year!