Fixed Deposit in Singapore: 5 Mistakes to Avoid
Calculates interest on a Singapore fixed deposit, which typically pays simple interest at maturity. The maths is not complicated, but a handful of errors come up again and again in this and related loans & finance calculations. Here is what to watch for.
Calculators make it easy to compare scenarios side by side: a shorter tenure versus a lower instalment, a higher deposit versus more cash in hand, or paying down debt versus investing. Seeing the total cost, not just the monthly figure, usually makes the better choice obvious.
Cars in Singapore carry costs found almost nowhere else, including the Certificate of Entitlement and the Additional Registration Fee. Loans are capped at 60% or 70% of the price depending on the car's Open Market Value, and the maximum tenure is seven years.
1. Mixing monthly and annual rates
Divide annual rates by 12 for monthly calculations and keep periods consistent.
2. Using unrealistic returns
Projecting 10% a year for decades can make goals look easy; test lower rates too.
3. Forgetting inflation
S$1 million in 30 years will buy much less than S$1 million today.
4. Paying only the minimum on a card
Minimum payments barely cover interest, so balances can take years to clear.
5. Only looking at the monthly payment
A longer tenure lowers the instalment but raises the total interest paid.
The correct method
Interest = P × rate × months ÷ 12.
For example, with these inputs:
- Deposit (S$): 20,000
- Interest rate (% a year): 2.8
- Tenure (months): 12
the calculator returns:
- Interest earned: S$560.00
- Maturity amount: S$20,560.00
Related calculations
- CAGR Calculator: Calculates the compound annual growth rate between two values.
- ROI Calculator: Measures the return on an investment as a percentage.
- Inflation Calculator: Shows how inflation changes prices and purchasing power.
- Dividend Yield Calculator: Calculates dividend yield for SGX stocks and REITs.
The Fixed Deposit Calculator applies the formula consistently, so it is a quick way to double-check your own working.
Run your own numbers: Fixed Deposit Calculator