How to Calculate Fixed Deposit in Singapore: A Step-by-Step Guide
Calculates interest on a Singapore fixed deposit, which typically pays simple interest at maturity.
Interest rates, instalments and returns compound over years, so a small difference in rate or tenure turns into thousands of dollars. Working the numbers out yourself makes it easier to compare bank offers, avoid expensive debt and plan savings goals.
What you need
- Deposit (S$)
- Interest rate (% a year)
- Tenure (months)
Step by step
- Enter the deposit (S$).
- Enter the interest rate (% a year).
- Enter the tenure (months).
- The results update as you type, or press Calculate.
- Read the interest earned first, then the supporting figures below it.
The formula
Interest = P × rate × months ÷ 12.
Worked 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$20,560.00
A second example
Now change the inputs to:
- Deposit (S$): 25,000
- Interest rate (% a year): 2.8
- Tenure (months): 12
the calculator returns:
- Interest earned: S$700.00
- Maturity amount: S$25,700.00
Practical tips
- Compare loans by effective interest rate, not flat rate; the EIR is roughly double the flat rate.
- Even small monthly contributions grow meaningfully over 20 years because of compounding.
- Check for early repayment penalties and processing fees before taking any loan.
- Factor in inflation when you plan for goals that are many years away.
Background
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.
Interest in Singapore is quoted in several ways. Mortgages and savings accounts use effective annual rates, while car loans and many personal loans are advertised at flat rates that look much lower than their true cost. Banks must disclose the effective interest rate, and comparing on that basis gives a fair picture.
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.
Want to skip the arithmetic? The free Fixed Deposit Calculator does all of this instantly and updates as you type.
Run your own numbers: Fixed Deposit Calculator