A check of banks' websites last Friday shows many, including the local lenders, are paying close to nothing for short- term US-denominated time deposits.

United Overseas Bank is paying zero per cent for amounts below US$50,000 (S$76,000) for a one-month deposit, while OCBC Bank is paying no interest for its call deposit for US dollars.

DBS Bank is paying zero interest for all listed amounts of US dollars for a one-week deposit. This means if you park a big sum, say US$500,000, with Singapore's largest bank in a one-week term deposit in US dollars, you would do just as well to keep the cash at home.

Money market experts say what they are seeing is 'unprecedented'. While currencies like the yen have yielded zero per cent interest, this is possibly the first time banks here have dished out zilch for US-denominated deposits. 

Read the full story in The Straits Times today.