In 2025, with interest rates fluctuating and inflation impacting purchasing power, are fixed deposits still the best way to grow your cash? While they offer stability, their rigid terms and often lower returns may leave you searching for a smarter alternative. Enter Syfe Cash+ Flexi — a flexible, modern solution that lets you grow your cash in Singapore Dollars (SGD) or US Dollars (USD) with daily returns and no lock-in periods.
But how does it compare to traditional fixed deposits, and why might it be the better choice for your financial goals? Let’s dive in.
Table of Contents
- How Do Fixed Deposits Work?
- How Global Economies Shape Fixed Deposit Rates
- How Are SGD Fixed Deposit Rates?
- Does That Mean We Should Invest in USD Fixed Deposits?
- How Does Syfe Cash+ Compare to SGD and USD Fixed Deposits?
- Why Syfe Cash+ is the Smarter Alternative to Fixed Deposits
- Which One is Right for You?
How Do Fixed Deposits Work?
If you’ve ever looked for a safe way to grow your savings, chances are you’ve come across fixed deposits. They’re a popular choice for many, especially those who prefer predictability over risk. But what exactly are fixed deposits, and how do they work?
The Basics of Fixed Deposits
Fixed deposits, or FDs, are a type of savings account where you lock away a sum of money with a bank for a set period — anywhere from a few months to several years. In return, the bank pays you a fixed interest rate, which is usually higher than what you’d get from a regular savings account.
What Makes Fixed Deposits Unique?
- Guaranteed Returns: With fixed deposits, you know exactly how much you’ll earn by the end of the term. This predictability makes them a go-to option for risk-averse savers.
- Locked-In Tenure: Once you deposit your money, it’s tied up for the agreed period. Need cash before the term ends? You’ll likely face penalties, which can eat into your returns.
- Interest Rates: Most FDs offer a fixed interest rate for the entire term, so you don’t have to worry about market fluctuations. Some banks run promotions with higher rates, but these often come with stricter terms or shorter tenures.
- Minimum Deposit: Banks typically require a minimum amount to open a fixed deposit, which can range from a few hundred to thousands of dollars, depending on the institution.
| While fixed deposits are a reliable way to grow your savings, their lack of flexibility can be a drawback. For example, if you need access to your money before the term ends, you could lose out on some of your returns. |
How Global Economies Shape Fixed Deposit Rates
Fixed deposit rates are influenced by global economic conditions, central bank policies, and inflation — factors that impact how much your savings can truly grow.
- Interest Rates and Monetary Policy: Fixed deposit rates typically rise when central banks, like the U.S. Federal Reserve, hike interest rates to combat inflation. Conversely, when rates are lowered to spur economic growth, FD rates tend to decline, reducing their appeal. In Singapore, while MAS doesn’t set interest rates directly, local banks adjust FD rates in response to global market shifts.
- Inflation and Real Returns: A fixed deposit may offer stable returns, but inflation erodes its real value. If an FD earns 3% interest annually but inflation runs at 4%, your purchasing power still declines, limiting the effectiveness of FDs as a long-term wealth preservation tool.
- Bank Liquidity and Market Demand: Banks adjust FD rates based on liquidity needs — higher rates when they need more deposits, lower when they don’t. Promotional rates may seem attractive but often come with stricter conditions like longer lock-in periods or higher minimum deposits.
How Are the Fixed Deposit Rates in Singapore?
Fixed deposit rates in Singapore vary across banks and tenures, influenced by factors such as economic conditions and individual bank policies.
Average Rates in 2025
As of April 2025, the average fixed deposit rates for Singapore Dollar (SGD) accounts are as follows:
- 3-Month Tenure: Rates range from 2.20% to 2.50% per annum. Bank of China offers the highest at 2.50% p.a. (mobile placement) for a minimum deposit of S$500.
- 6-Month Tenure: Rates are ranging from 2.15% to 2.50% p.a.. SBI tops the chart with 2.50% p.a. for S$50,000, followed by Bank of China at 2.45% p.a. and Maybank at 2.45% p.a.
- 12-Month Tenure: Rates are around 2.00% p.a. And 2.45%, with DBS/POSB offering 2.45% p.a. for deposits from S$1,000, while Bank of China and SBI offer 2.40% p.a. for mobile or standard placements.
For a comprehensive comparison of the latest fixed deposit rates, you can refer to Syfe’s detailed guide: Best Fixed Deposit Rates in Singapore.
Does That Mean We Should Invest in USD Fixed Deposits?
USD fixed deposits have become increasingly attractive in Singapore, with banks offering competitive interest rates that outpace their SGD counterparts. For instance, as of April 2025, Bank of China offers:
- 4.90% p.a. for a 3-month USD fixed deposit
- 4.85% p.a. for a 6-month tenure
- 4.55% p.a. for a 12-month tenure
All of these rates come with no minimum deposit requirement, making them accessible to a wide range of investors. Compared to SGD fixed deposits, which average around 2.50% p.a., USD deposits offer a noticeable advantage in returns. However, these higher yields come with their own set of risks, particularly currency fluctuations and shifts in US interest rates.
Why Choose USD Fixed Deposits?
- Higher Returns: The strong US economy and higher Fed interest rates make USD deposits more attractive.
- Currency Diversification: Holding USD can hedge against SGD depreciation.
- Global Stability: The USD is a widely accepted and resilient currency.
Risks:
- Exchange Rate Fluctuations: If the USD weakens against the SGD, your returns in SGD terms shrink. For example, a 4% USD return may effectively yield less if the exchange rate drops.
- Fed Rate Cuts: A decrease in US interest rates could lower USD fixed deposit yields.
- Liquidity Constraints: Funds are locked in for the term, with penalties for early withdrawals.
How Does Syfe Cash+ Compare to SGD and USD Fixed Deposits?
SGD Fixed Deposit Comparison
| Feature | Syfe Cash+ Flexi (SGD) | Syfe Cash+ Guaranteed (SGD) | SGD Fixed Deposits |
| Projected Returns | 3.1% – 3.2% p.a. (after fees) | 2.5% p.a. guaranteed (1-month term) | 2.00% to 2.90% p.a. (varies by bank) |
| Capital Guaranteed? | No | Yes (subject to underlying bank risk) | Yes (up to S$75K if SDIC insured) |
| Returns Payout | Daily | End of term | End of term |
| Lock-in Period | None | 1, 3, 6, 12 months | 1 – 36 months |
| Funding Currency | SGD | SGD | SGD |
| Management Fee | 0.05% – 0.15% p.a. | None | None |
| Minimum Deposit | None | None | Varies by bank |
| Early Withdrawal | No penalties | No penalties | Fees may apply |
Source:
Syfe Cash+ SGD Flexi rates from Syfe website as of 7 April 2025
Syfe Cash+ SGD Guaranteed rates (1-month) from Syfe website as of 7 April 2025
SGD Fixed Deposit Rates from various bank websites as of 7 April 2025
Rates are subject to change without notice. Please verify directly with the respective sources.
USD Fixed Deposit Comparison
| Feature | Syfe Cash+ Flexi (USD) | Syfe Cash+ Guaranteed (USD) | USD Fixed Deposits |
| Projected Returns | 4.3% – 4.4% p.a. (after fees) | 4.3% p.a. guaranteed (1-month term) | 4.3% p.a. (varies by bank) |
| Capital Guaranteed? | No | Yes (principal amount is fully protected) | Yes (up to S$75K if SDIC insured) |
| Returns Payout | Daily | End of term | End of term |
| Lock-in Period | None | 1months | 1 – 36 months |
| Funding Currency | USD or SGD | USD or SGD | USD or SGD |
| Management Fee | 0.15% – 0.20% p.a. | None | None |
| Minimum Deposit | US$10,000 | None | Varies by bank |
| Early Withdrawal | No penalties | No penalties | Fees may apply |
Source:
Syfe Cash+ USD Flexi rates from Syfe website as of 7 April 2025
Syfe Cash+ USD Guaranteed rates (1-month) rates from Syfe website as of 7 April 2025
USD Fixed Deposit Rates from various bank websites as of 7 April 2025
Rates are subject to change without notice. Please verify directly with the respective sources.
Why Syfe Cash+ is the Smarter Alternative to Fixed Deposits
When it comes to growing your cash, fixed deposits offer stability but lack flexibility. Syfe Cash+ provides a more dynamic solution that helps you maximise returns while keeping your money accessible.
How Syfe Cash+ Outperforms Fixed Deposits
Syfe Cash+ isn’t just an alternative to fixed deposits — it’s a smarter, more flexible way to grow your cash while keeping it accessible at all times. Here’s why it stands out:
✔ Higher Returns, Lower Risk – Earn projected returns of 3.4% p.a. (SGD) and 4.32% p.a. (USD)—outpacing many traditional fixed deposits, savings accounts, and even some short-term investments.
✔ No Lock-Ins, Maximum Flexibility – Unlike FDs, which tie up your funds for months or years, Syfe Cash+ Flexi lets you withdraw anytime without penalties. Whether you need your money tomorrow or next year, you remain in control.
✔ Start with Any Amount – There’s no minimum investment for SGD portfolios and no complex requirements — just deposit what works for you and start earning immediately.
✔ Built for Liquidity and Stability – Syfe’s cash management portfolios are backed by money market funds and short-term bonds, ensuring stable returns while keeping risk low.
✔ Seamless and Hassle-Free – Fund your account today and get invested tomorrow — no tedious paperwork, no hidden fees, and no bank-hopping required to chase better rates.
For those looking for the best cash management account in Singapore, Syfe Cash+ Flexi stands out as a flexible, high-yield alternative to fixed deposits.
Should You Choose Cash+ Flexi or Cash+ Guaranteed?
Both Syfe Cash+ Flexi and Syfe Cash+ Guaranteed offer competitive returns, but they cater to different financial needs. Here’s how to decide which one is right for you:
Choose Cash+ Flexi if you need:
✔ Maximum liquidity – Withdraw funds anytime with no penalties.
✔ Daily returns – Earn projected returns of 3.1 to 3.2% p.a. (SGD) and 4.3 to 4.4% p.a. (USD) that are credited daily.
✔ No lock-in period – Keep your cash flexible while still growing your savings.
✔ A dynamic, market-driven approach – Returns adjust in tandem with market interest rates.
Best for: Emergency funds, short-term savings, and those who want to keep their cash accessible while earning steady returns.
Choose Cash+ Guaranteed if you need:
✔ Fixed returns with certainty – Earn 2.5% p.a. (SGD) or 4.3% p.a. (USD) guaranteed (1-month term) with no risk of fluctuations.
✔ A set investment period – Select from 1, 3, 6, or 12-month terms, locking in returns for the duration.
✔ A no-stress savings approach – Get predictable, stable returns without worrying about market shifts.
Best for: Those who prefer guaranteed rates and don’t need immediate access to their funds during the term.
Which One is Right for You?
If you prioritise liquidity and daily returns, Cash+ Flexi is the smarter choice. But if you want fixed returns with minimal market risk, Cash+ Guaranteed ensures stability over a short period.
Still unsure? You can diversify by using both — keeping some funds flexible in Cash+ Flexi, while securing fixed returns with Cash+ Guaranteed.
Start investing with Syfe Cash+ today and grow your savings effortlessly.
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