(b) your placement of fixed deposit is for 12 months or above Minimum placement sum for 1 or 2 months deposit is S$10,000, and for the longer terms is S$500. Overdue Fixed Deposit (3 to 36 months) will be paid on the then prevailing Board Rate for completed quarter (s) or cycle (s). Hong Leong Finance fixed deposit rate: Interest rate: 0.65 per cent p.a.
Fixed deposit also called time deposit is a type of bank account that gives account owners a fixed amount of interest. In exchange, the account owners agree not to withdraw their funds for a certain period of time. Account owners do not need to do anything for their money to earn.
Hong Leong Bank Fixed Deposit offers the flexibility of deposit terms from one month to sixty months with attractive interest rate, invest your cash and earn money right off the bat. The longer you place the deposit, the higher the interest rate is. The cool thing about this Hong Leong Bank FD is that the bank lets you choose the tenure of your.
As a result, this type of savings or investment account is favoured by those who have a large amount of money to spare for a long period of time. While fixed deposit accounts do not earn much compared to other forms of investment, it is considered a safe investment.
In Singapore, banks offering fixed deposit accounts have different interest rates. These interest rates are dependent on how much the account owner deposited and how long the deposit will stay in the bank. This means that the fixed deposit interest rate dictates how much the account owner will earn.
In most cases, fixed deposit interest rates are usually very low. They are usually under 1%. This interest rate is so much lower compared to other types of investment. If you think that you can live off of this interest rate earning, you are wrong.
Given the low average interest rates of fixed deposits, account owners must regard their fixed deposits as a form of passive income. You will not get rich, but it is a good thing that your deposit account is earning. Also, however little these interest rates of fixed deposits are, they still gave higher interest rates compared to a savings account.
Disclaimer: Rates change monthly and can be changed by the banks anytime.
The usual rate is under 1% and can go as high as 1.8 to 2% p.a. Due to the economic downturn, fixed deposit rates remain low.
After knowing the usual interest rates of fixed deposit accounts, you must also learn how to calculate your potential earnings. Before opening a fixed deposit account in Singapore, you can do the computation so that you can have an idea if this option works for you best. The first thing to do is to identify how much deposit amount you are willing to give. Remember that this deposit amount should not be touched for a specific period of time, usually around 3 months or even 12 months.
The banks multiply the deposit amount by the interest rate, and by the length of time you are willing to keep your deposit with them. It means that your earnings will be computed as the deposit amount x interest rate x months of deposit. This is basically the formula used by banks to compute your earnings. Note that the interest rate varies from the promotional rates of the banks.
Let’s just say that you have 20,000 dollars to spare as your deposit amount and that you are willing to deposit is as long as 12 months. For the sake of discussion, let’s assume that the interest rate per year is at 1%. So the computation becomes. 20,000 dollars x 1% x 12 = 240 dollars.
The 12 months of your 20,000 dollars in your fixed deposit account would only earn $240. This is a reminder for account holders that the higher deposit amount and the longer time they can keep their money untouched means high income. Also, account holders must look for banks that offer high promotional rates.
If you have successfully saved and have no plan in the near future to spend this saving, opening a fixed deposit account might be a good decision for you.
Instead of putting your money on a savings account where your money is basically sleeping and losing its value, you might opt to have a fixed deposit account instead. In this type of account, you can earn a little amount of money from the interest of your deposits. Without doing anything, your money is earning for you.
Also, if you are afraid of risks or do not think that the economy is right for a risky investment, a fixed deposit is a good option. Banks in Singapore offer good rates for money stored in your banks.
You just have to look for a bank that has good deposit promotions and has awesome interest deals. In this type of account, you can be sure that your fresh funds or your deposits are earning from the fairly reasonable interest rates of banks.
During times of economic crisis, a lot of people in Singapore also choose a fixed deposit account because other forms of investment are simply not possible in these difficult times. Depositing their earnings on a reliable financial institution is one way to keep their finances secure. While doing so, their money is earning from the interest rates imposed by the banks.
Simply put, here are the pros of choosing a fixed deposit account:
Note that banks have a varying minimum deposit. If you wish to deposit a small amount fo money, you can look for the bank that offers a very low minimum deposit. For beginners who do not have much experience in fixed deposit accounts or in bank deposits in general, finding for a bank with a low minimum deposit is the best option.
On the other hand, fixed deposit accounts have downsides as well. Here are some:
The next things to know now are the eligibility and requirements needed to open a fixed deposit account. Remember that opening a fixed deposit account is similar to doing any transactions with banks.
You have to present certain requirements to prove to the bank of your sincerity to enter a transaction and contract with them. Also, note that these eligibility and requirements are dependent on a lot of things which means that you have to identify first the category you belong to.
For Singapore citizens and Singapore permanent residents, you only need to submit one requirement. This is your:
NRIC stands for the National Registration Identity Card. All Singapore citizens and Singapore permanent residents have this card, so presenting this must not be an issue. Just bring with you your NRIC when you visit the bank.
Meanwhile, foreigners in Singapore have to submit more documents compared to Singapore citizens and permanent residents. They need to present the following documents:
Note that each bank sometimes has certain requirements. This means that it is best to approach your bank of choice if you truly are determined to open a fixed deposit account. Make sure to submit all the requirements of the bank you chose.
Also, when applying for fixed deposits, banks in Singapore have allowed for two options. These are:
One important reminder here is to research how banks have different deals for their fixed deposit accounts. Contact your local banks to know their minimum deposit, deposit promotions, and promotional rates before deciding to open an account.
Remember, deposit promotions and promotional rates have a lot to do with your earnings. Choosing the bank with the best deposit promotions and other promotions, rates, and deals will benefit you in the long run.
The low-risk nature of fixed deposit accounts in Singapore has made a lot of people looking for best fixed deposit banks. A lot of individuals have seen how fixed deposit accounts offer a safe and secure way of saving their money. Despite the positive attributes of fixed deposits, it is important for people to learn that fixed deposits are not for everyone.
Fixed deposit accounts do not promise wealth. The interest rates of the banks are not enough to ensure account holders instant wealth.
Also, earnings from fixed deposit accounts really depend on the deposit amount and the length of time the money stays in the bank. This means that those with limited deposits and can only keep their money in banks for a limited amount of time virtually earn nothing from fixed deposit accounts.