Understanding Fixed Deposit Interest Ratesįixed deposits are so attractive because they offer guaranteed return at a respectable interest rate, compared to other investments which are riskier or have lower rates. Typically, there are no additional bank fees associated with such accounts, which also makes fixed deposits especially accessible as investment options. Most banks in Singapore offer fixed deposit accounts, with many extending eligibility to foreigners and even individuals as young as 12 years old. While it's possible to recall funds before the end of the tenure, this often means forfeiting interest, and may even incur penalty fees. Once this time period ends, consumers receive their initial funds back, plus interest–which is calculated based on a rate contracted when the funds were first deposited. This agreed-on period can be as short as 1 week or as much as 3+ years, though 3, 6, 9 and 12 month tenures are more common. As for the process, consumers first submit funds to the bank for a set amount of time. Benefits and risks of fixed deposit accountsįixed deposit accounts offer a semi-flexible way to earn interest at higher rates with little-to-no risk.

Understanding fixed deposit interest rates.

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