There are many ways a person can save their money in Singapore. Living in Singapore is expensive, but when planned smartly, a person can live comfortably as many others are living. The financial power of a person is in their own hands. When investing your money somewhere, there is a risk that you may lose your money. Everyone lives with that risk, but there is also the option to save your money without risk. To introduce you to such a thing, we are here today, as we are always for you with some or other financial tips. We are discussing fixed deposits today, and if they are right for you or not.
What is a Fixed Deposit?
A fixed deposit is an investment scheme offered by various banks to the customers. The bank will provide you with a fixed rate of interest, and you retrieve the money after the fixed tenure. The fixed deposits account allows an individual to deposit a sum amount as their savings for a set amount of time without touching it. And the longer you keep your money in the account, the higher the interest rate you will get in return. The fixed deposits have a higher interest rate and involve very low risks. So, it is considered as safer savings by any individual. The interest rates are also high, so why won’t a person invest in such savings? Plus, it is guaranteed that you will get the returns, and no matter how much the market rate fluctuates, the interest rates will stay the same.
Types of Fixed Deposit Accounts:
The fixed deposit doesn’t just give you returns with higher interest rates, but it also holds various options for you. There are different types of fixed deposits available in Singapore to invest in. Every fixed deposit have different features to choose from; they are explained below:
Conventional Fixed Deposit
This is a type of fixed deposit which gradually gives more interest rate compared to a savings account. A conventional fixed deposit is also called a time deposit. In the conventional fixed deposit, you can choose the deposit term starting from one week to until 36 months. Returns are guaranteed with this fixed deposit. In time deposits, you can get an even higher rate on returns if you extend the time of holding your deposits.
Foreign Currency Deposit
Foreign currency deposits have a time frame from one week to one year. You can choose the time frame for deposits accordingly. And the currency in foreign currency deposits is different from the Singaporean dollars. The foreign currency deposit also promises higher returns than conventional deposits. But this deposit has the risk of foreign exchange.
Categorization of Fixed Deposits
After the types, the fixed deposits are categorized into two types, short term fixed deposits, and long term fixed deposits. It depends on the amount of time you chose to invest your money. Further, we explain both the categories below:
The time period of short-term deposits is less than a year, and they can be further reduced to thirty days. Short-term deposits are beneficial for people who want short-term profits. The reason for short term deposits is to have the flexibility and achieve early profits.
Long-term deposits have a duration of twelve months to three years. This is the common fixed deposit category that people opt for. You will be keeping your money for a longer duration, so you will eventually get higher interest rates and returns after the end of the duration.
How to Open a Fixed Deposit Account?
In Singapore, the legal age for opening a fixed deposit account is 18 years, but some banks might have the option of opening a fixed account at the age of twelve years. But for that, a legal guardian or parent guarantor is required. A person can be a Singapore citizen, PR holder or a foreigner to open a fixed deposit account, and you just need to have the minimum amount ranging from S$1,000 to S$5,000. But the bank may have different requirements, which they will specify.
Being a Singaporean or PR holder, you just need to present your NRIC. If you are a foreigner, then you need to provide your passport, proof of address and Employment Pass, Dependent Pass, S Pass, Student Pass or Long-term Visit Pass.
Advantages of Fixed Deposits
The scheme of fixed deposits is simple, and that is the reason it is famous amongst the people. You don’t require to have any skill set to invest in fixed deposits and earn returns. You just need to invest the sum in the fixed deposit account, and you will get the return with interest after the end of the duration.
This is the best advantage of fixed deposits. You know that the market rate won’t affect the interest rate and your returns. So you can easily calculate the amount that you will get in return. It will help you to plan your finance accordingly without any stress.
With fixed deposits, you are not impose with fixed deposits limit and time duration. You just need to keep S$1,000 in the beginning, and if you want, you can invest a high amount as per your convenience. And the tenure of fixed deposits can be one month or a few years.
With this blog, you would have come to know the working of a fixed deposit. The fixed deposits are safe and profitable, but the last decision is up to you. You can invest in fixed deposits, or you can find any other better option.
KBB Credit SD Pte Ltd
KBB Credit SD Pte Ltd is a licensed money lender in Singapore since 2010. Throughout all these years, we have been providing people with the loans that they require for their personal or business funding.
To get in touch with us, you can call us at +65 6255 6998 or email us at firstname.lastname@example.org. We will attend to all calls immediately. As for emails, do allow us at least one working day to get back to you.
Our office is located at 111 North Bridge Road #01-35 Peninsula Plaza Singapore 179098. If you are taking the train, please alight at City Hall MRT Station. If you are driving, you can park your car at Capitol Piazza or Funan Mall. Peninsula Plaza is only a 2 minute walk away from either buildings.
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