Fixed Deposit in Singapore: Your Questions Answered
These are the questions people ask most often about fixed deposit. Each answer is short; follow the links for the full detail.
What does a fixed deposit calculation tell me?
Calculates interest on a Singapore fixed deposit, which typically pays simple interest at maturity.
What is the formula?
Interest = P × rate × months ÷ 12.
What do I need to enter?
Deposit (S$), Interest rate (% a year), Tenure (months).
Is this financial advice?
No. It is a calculation tool. For decisions about loans or investments, compare official offer documents and consider speaking to a licensed adviser.
Can you show an example?
For example, with these inputs:
- Deposit (S$): 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
Any tips?
- Paying credit card bills in full avoids interest charges of around 27% a year or more.
- Check for early repayment penalties and processing fees before taking any loan.
- Compare loans by effective interest rate, not flat rate; the EIR is roughly double the flat rate.
Background
Compounding is the reason long-term saving works: returns earn further returns, so the growth curve steepens over time. The same maths works against you with debt, which is why credit card balances at around 27% a year grow quickly if only minimum payments are made.
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.
Inflation erodes buying power, so a savings goal set in today's dollars needs to be adjusted upwards for the years it will take to reach it. Singapore's core inflation has varied widely over the past decade, so it is worth testing a range of rates.
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.
Try it yourself with the Fixed Deposit Calculator.
Run your own numbers: Fixed Deposit Calculator