Ever wondered how to tap into the potential of the USD but felt unsure about navigating the forex market? Many Singapore investors seek ways to diversify their holdings and potentially earn higher returns, and one avenue worth exploring is a foreign currency fixed deposit. These offer a blend of potentially better rates and diversification, allowing you to grow your wealth while managing risk.
Investors often seek the best foreign currency fixed deposit in Singapore to enhance their financial strategies. With an informed approach, individuals can navigate the available choices and optimise their savings based on their currency preferences and market conditions.
Table of Contents
- Summary
- Benefits and Risks of Foreign Currency Fixed Deposits
- Best Foreign Currency (USD) Fixed Deposit Rates (Apr 2025)
- Best 1-month USD fixed deposit rates in Singapore (Apr 2025)
- Syfe Cash+ USD Guaranteed: Flexible Option with Stable Returns
- Best 3-month USD fixed deposit rates in Singapore (Apr 2025)
- Best 6-month USD fixed deposit rates in Singapore (Apr 2025)
- Best 12-month USD fixed deposit rates in Singapore (Apr 2025)
- What Is a Foreign Currency Fixed Deposit?
- How Does a Foreign Currency Fixed Deposit Work?
- Exploring Alternative Investment Options
Summary
| Bank Name | Interest Rate (p.a.) | Minimum Deposit Amount or Equivalent | |
| Highest 1-month USD Fixed Deposit Rate | Bank of China | 4.15% | First US$5,000 |
| Highest 1-month USD Fixed Deposit Rate | ICBC | 4.15% | Min. deposit US$500 |
| Highest 3-month USD Fixed Deposit Rate | Bank of China | 4.30% | Min. deposit US$5,000 |
| Highest 6-month USD Fixed Deposit Rate | ICBC | 4.20% | Min. deposit US$500 |
| Highest 12-month USD Fixed Deposit Rate | Bank of China | 4.00% | First US$5,000 |
- If you hold foreign currency and intend to retain it, a foreign currency fixed deposit account could be a suitable option.
- USD fixed deposit rates are anticipated to experience volatility.
- While USD fixed deposit rates may be higher than Singapore dollar fixed deposit rates, do note that there is potential foreign currency risk involved. Foreign currency fixed deposits are not protected by the Singapore Deposit Insurance Scheme.
Benefits And Risks Of Foreign Currency Fixed Deposits
Foreign currency fixed deposits can be a potentially higher-yielding investment option, but it’s essential to carefully evaluate both the benefits and the risks before committing your funds.
Benefits:
- Potentially Higher Returns: Interest rates on foreign currency deposits may exceed those in local currencies.
- Hedging Against Currency Fluctuations: Holding deposits in a foreign currency can protect against depreciation of the local currency.
- Diversification of Investment Portfolio: These deposits provide a way to diversify investments and minimise risk exposure.
Risks:
- Currency Risk: Fluctuations in exchange rates can erode your returns when converted back to your local currency. If the foreign currency depreciates against your local currency, you could end up with a lower overall return, even after accounting for interest earned.
- Lack of Liquidity: Fixed deposits typically lock in your funds for a specific tenure. Early withdrawal may incur penalties, reducing your overall returns.
- No Deposit Insurance: Foreign currency fixed deposits are generally not covered by deposit insurance schemes, meaning your capital may be at risk in the event of the bank’s insolvency.
Best Foreign Currency (USD) Fixed Deposit Rates (Apr 2025)
USD fixed deposits remain attractive due to potentially higher interest rates compared to other foreign currencies, and the perceived stability of the US dollar. However, rates can vary significantly depending on the deposit tenure (e.g., 3 months, 6 months, or 12 months) and the chosen bank.
Best 1-Month USD Fixed Deposit Rates In Singapore (Apr 2025)
| Bank Name | Tenure | Interest Rate (p.a.) | Minimum Deposit Amount or Equivalent |
| Bank of China | 1 month | 4.15% | First US$5,000 |
| ICBC | 1 month | 4.15% | Min. US$500 (E-Banking) or Min. US$20,000 (Over-the-counter) |
| DBS | 1 month | 4.02% | First US$10,000 |
| RHB | 1 month | 3.76% | |
| UOB | 1 month | 3.71% | First US$50,000 |
| Maybank | 1 month | 3.65% | Min. US$10,000 |
| OCBC | 1 month | 3.64% | First US$49,000 |
| HL Bank | 1 month | 3.55% | Min. US$50,000 |
| State Bank of India | 1 month | 3.5% | Min. US$5,000 |
| CIMB | 1 month | 3.20% | First US$10,000 |
Syfe Cash+ Guaranteed (USD): Flexible Option with Stable Returns
Investors seeking potentially higher returns with added flexibility may want to consider exploring alternative investment options. Syfe offers solutions that can complement or even replace even the best fixed deposits.
Syfe Cash+ USD Guaranteed stands out as a particularly attractive alternative to USD fixed deposits. It offers several advantages, including:
- No minimum or maximum deposit requirements, catering to both small and large investors.
- Potentially higher returns than traditional USD fixed deposits, allowing you to earn more on your savings.
- A simple and convenient investment process, with the flexibility to transfer funds in SGD without needing to open a separate USD account.
With its unique combination of flexibility, convenience, and potentially higher returns, Syfe Cash+ USD Guaranteed is a compelling option for investors seeking to optimize their USD savings.
Best 3-Month USD Fixed Deposit Rates In Singapore (Apr 2025)
| Bank Name | Tenure | Interest Rate (p.a.) | Minimum Deposit Amount or Equivalent |
| Bank of China | 3 months | 4.30% | First US$5,000 |
| State Bank of India | 3 months | 4.25% | Min. US$5,000 |
| ICBC | 3 months | 4.25% | Min. US$500 (E-Banking) or Min. US$20,000 (Over-the-counter) |
| RHB | 3 months | 3.89% | First US$99,999 |
| DBS | 3 months | 3.88% | First US$10,000 |
| Maybank | 3 months | 3.65% | Min. US$10,000 |
| HL Bank | 3 months | 3.55% | Min. US$50,000 |
| UOB | 3 months | 3.53% | First US$50,000 |
| OCBC | 3 months | 3.47% | First US$49,000 |
| CIMB | 3 months | 3.35% | First US$10,000 |
Best 6-Month USD Fixed Deposit Rates In Singapore (Apr 2025)
| Bank Name | Tenure | Interest Rate (p.a.) | Minimum Deposit Amount or Equivalent |
| ICBC | 6 months | 4.20% | Min. US$500 (E-Banking) or Min. US$20,000 (Over-the-counter) |
| Bank of China | 6 months | 4.05% | First US$5,000 |
| RHB | 6 months | 3.84% | First US$99,999 |
| State Bank of India | 6 months | 3.75% | Min. US$5,000 |
| Maybank | 6 months | 3.65% | Min. US$100,000 |
| HL Bank | 6 months | 3.48% | Min. US$50,000 |
| DBS | 6 months | 3.38% | First US$10,000 |
| CIMB | 6 months | 3.30% | First US$10,000 |
| UOB | 6 months | 3.01% | First US$50,000 |
| OCBC | 6 months | 3.00% | First US$49,000 |
Best 12-Month USD Fixed Deposit Rates In Singapore (Apr 2025)
| Bank Name | Tenure | Interest Rate (p.a.) | Minimum Deposit Amount or Equivalent |
| Bank of China | 12 months | 4.00% | First US$5,000 |
| State Bank of India | 12 months | 3.75% | Min. US$5,000 |
| ICBC | 12 months | 3.65% | Min. US$500 (E-Banking) or Min. US$20,000 (Over-the-counter) |
| RHB | 12 months | 3.44% | First US$99,999 |
| HL Bank | 12 months | 3.29% | Min. US$50,000 |
| CIMB | 12 months | 3.25% | First US$10,000 |
| DBS | 12 months | 2.81% | First US$10,000 |
| OCBC | 12 months | 2.46% | First US$49,000 |
| UOB | 12 months | 2.31% | First US$50,000 |
What Is Foreign Currency Fixed Deposit?
A foreign currency fixed deposit is essentially a fixed deposit account held in a currency other than your local currency. The principal amount and interest earned are typically paid out at maturity in the same foreign currency.
Key aspects of a Foreign Currency Fixed Deposit include:
- Competitive Interest Rates: Foreign currency fixed deposits can sometimes offer higher interest rates compared to local currency fixed deposits, depending on prevailing market conditions.
- Flexible Tenures: You can typically choose from various tenures, ranging from short-term (e.g., a few months) to longer-term (e.g., several years), depending on your investment goals.
- Currency Options: A range of currencies are usually available, allowing you to diversify your holdings.
How Does Foreign Currency Fixed Deposit Work?
With a foreign currency fixed deposit, you deposit a specific amount of foreign currency for a predetermined period. During this time, your funds are locked in, and you earn interest based on the interest rate applicable to that particular currency and tenure.
How To Open A Foreign Currency Fixed Deposit In Singapore
Opening a foreign currency fixed deposit account in Singapore usually involves the following steps:
- Choose a Financial Institution: Research and select a bank or financial institution that offers competitive foreign currency fixed deposit rates and suits your needs. When choosing one that suits you, be sure to consider:
- interest rates: Look for competitive rates that align with your investment goals and risk tolerance.
- Minimum deposit requirement: Different banks have different minimum deposit requirements, so choose one that suits your budget.
- Bank’s reputation and security: Choose a reputable and financially stable institution to ensure the safety of your funds.
- Additional fees or charges: Be aware of any fees associated with opening, maintaining, or closing the account, as well as any early withdrawal penalties.
- Check Eligibility and Requirements: Most banks in Singapore require individuals to be at least 18 years old and possess a valid form of identification, such as a NRIC for Singaporeans or a passport for foreigners.
- Specific Requirements for Foreign Residents: Some institutions may have additional requirements for foreign residents, such as a valid employment pass or proof of residency in Singapore. In addition, certain banks may require a minimum residency period or a specific type of visa.
- Visit a Branch or Apply Online: You can typically open an account by visiting a branch in person or through the bank’s online platform, if available. In both cases, be sure to prepare the necessary documents (e.g., identification proof, proof of address) in advance.
- Fund Your Account: Deposit the required amount of foreign currency into your new fixed deposit account. You can do so via:
- Transfer from an Existing Account;
- Cash Deposit; or
- Cheque Deposit.
Key Factors To Consider Before Opening A Foreign Currency Fixed Deposit
Before committing to a foreign currency fixed deposit, several factors warrant consideration. It’s crucial to be well-informed of key considerations to avoid any surprises.
- Currency Risk: Exchange rate fluctuations can impact your returns. For instance, if the USD depreciates against the SGD during your deposit tenure, your returns in SGD terms will be lower, even if you earn interest in USD.
- Minimum Deposit Requirements: Banks typically set minimum deposit amounts for foreign currency fixed deposits, which can vary depending on the currency and tenure.
- Tenure and Liquidity: The chosen tenure affects your access to the funds. Longer tenures generally offer higher interest rates but also limit your liquidity. If you anticipate needing the funds before the maturity date, a shorter tenure might be more suitable, even if it means slightly lower returns.
Exploring Alternative Investment Options
Assessing The Suitability Of Foreign Currency Fixed Deposits
Foreign currency fixed deposits can be ideal for individuals who already hold a substantial amount of a specific foreign currency—perhaps due to overseas earnings or inheritance—and intend to keep it in that currency for a considerable period.
Those looking for short-term investments may prefer options with flexible terms, such as a 1-month duration, which can suit immediate financial needs.
Key risks to consider:
- Currency Fluctuation: The most significant risk is the potential depreciation of the foreign currency against your local currency.
- Lack of Deposit Insurance: Foreign currency deposits are typically not covered by deposit insurance.
- Limited Access to Funds: Fixed tenures restrict access to your funds, potentially incurring penalties for early withdrawal.
The Alternative: Cash Management Accounts
Cash management accounts (CMAs) offer an alternative to fixed deposits with a focus on liquidity and convenience. These accounts typically invest in low-risk, highly liquid instruments (such as short-term bond funds and money market funds), aiming to provide returns that are competitive with fixed deposits while offering greater flexibility.
They often come with features like no lock-in periods and digital transfers, allowing you to access your funds whenever needed making them user-friendly for everyday transactions.
Syfe Cash+ USD Guaranteed is a compelling alternative to USD fixed deposits, offering a unique combination of benefits. With no minimum or maximum deposit requirements, it provides flexibility for investors of all sizes. It offers potentially higher yields compared to USD bank deposits, allowing you to earn more on your savings. Furthermore, the process is simple and convenient – you can easily transfer funds in SGD without needing to open a separate USD account.
