UOB Fixed Deposit Promotions & Interest Rates in Singapore – MoneySmart Review 2019

UOB Fixed Deposits

Fixed deposits are a great low-risk investment vehicle to put your money in, especially when the alternative is to let it sit in the bank.

Let’s have a look at UOB fixed deposits to see what they offer.

 

UOB fixed deposit rates (Jan 2020)

UOB fixed deposits
Minimum sum $20,000
Tenure 10 months
Promotional interest rate 1.60% (till 31 Jan 2020)

 

UOB fixed deposit promotions

It’s no secret that fixed deposit board rates — i.e. non-promotional rates — are crap.

If you refer to the published board rates, the maximum yield is 1.65% p.a., which sounds decent, until you realise that no matter the amount, you’ll need to lock up your cash for 36 months to enjoy it.

Whether you’re looking at the minimum deposit sum or tenure duration, it sucks on both counts.

UOB’s fixed deposit promotional rate is actually slightly lower — 1.60% p.a. — but with a much lower commitment of minimum $20,000 deposit and a 10 months tenure. Without this promotion, a 10 month deposit with UOB would yield interest of a measly 0.45% p.a.

There is only 1 UOB Fixed Deposit promotion available right now, and like most fixed deposit promotions, it changes every month. January 2020’s rate is considered decent for a local bank, but is actually lower than last month’s rate of 1.65% p.a. (Dec 2019).

 

UOB fixed deposits are best for people prefer local banks

To be frank, the promotional interest rate of 1.60% isn’t very competitive. If you’re willing to lock up $20,000 for 10 months, you can find much better rates out there.

However, if you’ve read our article on the best fixed deposit promotions in Singapore, you’d know that the frontrunners are all foreign banks. In particular, the Malaysian bank CIMB is in the lead, offering a market high rate of 1.80% p.a.

Personally, I see no issue with it. These banks are all very established and many Singaporeans bank with them.

OCBC vs UOB vs DBS/POSB fixed deposit promotions

However, if you’re more conservative and prefer a local bank, then UOB’s fixed deposit promotion is currently the best.

DBS/POSB doesn’t have good rates worth mentioning, and OCBC’s best rate is lousier (1.55% p.a. for min. $20,000 deposit for 12 months).

 

Other fixed deposits with a short tenure

Additionally, UOB’s promotion is quite unique in that it is for 10-month deposits. I personally find it quite an awkward tenure, because it’s just 2 months shy of a year, which is the usual lock-in period.

Regardless, if you’re looking for short tenures under 12 months, here are other banks to consider:

Bank/financial institution Min. deposit amount Tenure Promotional interest rate
HSBC  $30,000 6 months 1.75% p.a. (expires 29 Feb) 
CIMB $10,000 3 or 6 months 1.70% p.a. (online only, expires 31 Jan)
ICBC $20,000 6, 9 or 12  months 1.65% p.a.
UOB $20,000 10 months 1.60% p.a. (expires 31 Jan) 
Hong Leong Finance $50,000 4+4 months 1.58% p.a.
ICBC $500 3, 6 or 12 months 1.55% p.a.
Standard Chartered $25,000 9 months 1.55% p.a. (expires 31 Jan)

The best one this month is by HSBC, which offers you an attractive 1.75% p.a. for a short 6-month deposit. The catch is that you need at least $30,000, which may be a stretch for some.

If you don’t have that much spare cash, you can still get a neat 1.70% p.a. with CIMB (minimum $10,000) or 1.55% p.a. with ICBC (minimum $500).

 

Are you putting any of your money into fixed deposits right now? Share your tips and recommendations in the comments!