Singapore Seniors: How to Secure the Best Fixed Deposit Rates and Safe Income in 2025

Currently, DBS is the primary bank providing an additional fixed deposit rate bonus for those aged 55 and above. Fixed deposits are widely chosen by retirees for their deposit insurance, stable rates, and straightforward criteria. Alternatives such as Singapore Savings Bonds (SSBs) and T-Bills also attract attention due to their government backing and flexibility. This article outlines available fixed deposit options, eligibility, requirements, and suitable alternatives for seniors in 2025.

Reviewing Current Fixed Deposit Rates and Offers for Seniors (2025)

Senior-Focused Offers

• DBS is the key bank with a publicized senior benefit:
  • DBS Senior Bonus:
    • Available to residents aged 55+ who hold a Premier Income Account (PIA).
    • Provides an additional +0.10% p.a. on top of the standard fixed deposit rate for terms of at least six months.
    • For example: 2.55% p.a. for a 1-year deposit (on S$1,000 – S$19,999), compared to the standard 2.45%.
    • Source
• Other Major Banks:
  • UOB, OCBC, Maybank, CIMB, and other local banks do not advertise senior-exclusive fixed deposit offers for 2025. Seniors are eligible for the same rates as other customers, with the exception of DBS.

General Fixed Deposit Rates (April 2025)

• Bank of China:
  • 2.50% p.a. for 3/12 months
  • Minimum S$500 deposit (via mobile banking)
• Maybank:
  • Up to 2.90% p.a. for 6 months (with bundle, minimum S$20,000 and linked savings account)
• SBI:
  • 2.50% p.a. for 6 months (minimum S$50,000)
• CIMB:
  • Up to 2.35% p.a. for 3 months (minimum S$10,000, preferred customers)
• ICBC:
  • 2.40% p.a. for 3 months (minimum S$500, via e-banking)
• UOB:
  • 2.10–2.30% p.a. for 6 months (minimum S$10,000, promotional rate for fresh funds)
• DBS:
  • 2.45% p.a. for 1 year (S$1,000–S$19,999); 2.55% p.a. for eligible seniors
  • Larger deposits (above S$20,000) at DBS generally offer lower rates.

Rates may change. Checking the banks’ official platforms for the most up-to-date information is recommended before investing.

Eligibility, Application, and Key Requirements

• Age Requirement:
  • For the DBS senior bonus, applicants must be at least 55 years old. Other banks have no specific age requirements for fixed deposits.
• Minimum Placement Amount:
  • Varies from S$500 (ICBC, Bank of China) to S$50,000 (SBI), depending on the bank and promotion.
• Tenure and Flexibility:
  • Common durations range from 3 to 12 months. DBS provides flexible options from 1 to 12 months.
  • Select banks (e.g., RHB, ICBC) may allow early withdrawal without penalty.
• Deposit Insurance:
  • All Singapore Dollar fixed deposits at MAS-licensed banks are insured by the SDIC up to S$100,000 per depositor per bank.
• Currency:
  • The rates above refer to SGD deposits, which are protected by SDIC and do not entail foreign exchange risk.
  • Foreign-currency FDs (e.g., in USD) may have higher rates but are not SDIC-insured and introduce currency risks.

Alternative Stable Income Options to Consider

For seniors considering alternatives to fixed deposits, some options include:

• Singapore Savings Bonds (SSBs):
  • Issued and backed by the Singapore Government.
  • 1-year average return in April 2025 is 2.83% p.a.
  • Allows redemption monthly with no penalty; minimum investment is S$500.
• T-Bills:
  • Government-backed, short-term instruments (6 or 12 months).
  • 6-month T-Bills yielded 2.73% in March 2025.
  • Minimum investment is S$1,000; available through regular auctions.
• Cash Management Accounts:
  • Accounts such as StashAway Simple™ Guaranteed (2.4–2.5% p.a.) or Syfe Cash+ Guaranteed (2.45% p.a.) offer relatively high liquidity.
  • Note: Not capital guaranteed or SDIC-insured, and entail different risk profiles.
• High-Interest Savings Accounts:
  • Accounts like OCBC 360, UOB One, or Standard Chartered Bonus Saver may offer higher interest rates under certain conditions (such as salary credit, card usage, or specific deposit limits).
  • Conditions can be complex, and offers generally apply up to set deposit caps.

Important Considerations for Retirees

• Early Withdrawal Penalties:
  • Most fixed deposits apply a penalty or withhold interest if withdrawn before maturity, except at some banks (e.g., ICBC or RHB) which may forgo penalties.
• Term Length:
  • Flexible tenures (3–6 months) are widely available, which may be more suitable for those needing periodic access to their funds.
• Minimum Deposit Amounts:
  • Lower minimum amounts help those planning to invest smaller sums.
• Foreign Currency Risk:
  • Foreign-currency FDs may offer higher headline rates but involve exchange risk and are not SDIC-insured.

Selecting a Suitable Fixed Income Product

1. Assess liquidity needs:
   • Choose products with flexible withdrawal options or shorter tenures, if needed.
2. Prioritize insured returns:
   • Keep each deposit below S$100,000 per bank to stay within SDIC insurance coverage limits.
3. Utilize senior-specific benefits:
   • If eligible, take advantage of the DBS PIA bonus rate.
4. Consider alternatives for flexibility:
   • Explore SSBs and T-Bills for government backing and easier access to funds.

• DBS Premier Income Account currently offers the only major senior-specific fixed deposit bonus rate: 2.55% p.a. for 1 year (for those aged 55+, with a S$1,000 minimum).
• General fixed deposit rates range between 2.1% and 2.9% p.a. (minimum deposit from S$500 at certain banks).
• SSBs and T-Bills can be suitable for those seeking government-backed, flexible products.
• Cash management and high-interest savings accounts require careful evaluation of the terms and risk levels, as they are not capital guaranteed or SDIC-insured.
• Most other major banks currently do not provide special fixed deposit rates for seniors.

It is advisable to confirm the latest rates and terms directly with financial institutions before placing funds, as promotions and rates can change.

Sources

• GrowBeansprout: Best Fixed Deposit Rates in Singapore, April 2025
• StashAway: Singapore Best Fixed Deposit Rates Apr 2025
• MoneySmart: Best Fixed Deposit Accounts Singapore Apr 2025

Disclaimer: All content, including text, graphics, images and information, contained on or available through this web site is for general information purposes only. The information and materials contained in these pages and the terms, conditions and descriptions that appear, are subject to change without notice.