5 things to know about fixed deposit rate promotions

If you have excess cash on hand, take advantage of promotional fixed deposit rates banks are offering. Here are some interesting facts to know about the offers which are ending as soon as the end of this month:

1. High rates for high deposits

CIMB and Maybank offer higher interest rates when the amount deposited increases. Other banks like OCBC and HSBC, however, are offering the same promotional rate for all deposits under $1 million.

The highest rate offered for a 12-month fixed deposit between $55,000 and $100,000 is from CIMB. It is offering 1.7 per cent interest per annum. The next highest is from Maybank, which is offering 1.6 per cent.

CIMB will offer an even higher interest rate if the deposit amount is more than $100,000. If the deposit increases to above $100,000, the interest rate increases to 1.8 per cent per annum. No other bank increases their interest rates when more than $100,000 is deposited with them.

2. Promotional rates for lower deposits

You only need to deposit a minimum of $20,000 to obtain promotional rates at OCBC and UOB. At CIMB, Standard Chartered and Maybank the minimum amount you must save to qualify for promotional rates is $25,000.

3. It gets better for priority customers

A Standard Chartered priority customer depositing above $25,000 in a 12-month fixed deposit account will enjoy 1.55 per cent interest per annum. This is higher than the 1.5 per cent interest enjoyed by non priority customers.

A CIMB priority customer depositing at least $100,000 in an 18-month fixed deposit account will receive 0.05 per cent more interest per annum than non priority customers.

HSBC priority customers who deposit more than $200,000 in an 11-month fixed deposit will receive additional $150 Dairy Farm shoppingvouchers or rewards of higher value, such as staycations at selected regional hotels, depending on the deposit amount.

Other banks did not indicate online that priority customers will receive higher rates. Customers with other banks can approach their respective lenders for more information.

4. Longer tenors, higher rates

The promotional rates offered by CIMB, Maybank and Standard Chartered increase with the tenor of the fixed deposit account. For instance, saving $30,000 with Maybank for 12 months earns 1.45 per cent per annum, whereas saving this amount with the bank for 24 months earns 1.55 per cent per annum.

5. Many promotions end soon

The promotions of CIMB, UOB, Standard Chartered and HSBC end July 31. Maybank has reserved the right to end the promotional programme at its discretion. OCBC did not state when its promotional period will end.

jkoh@sph.com.sg