Sing Investments & Finance Limited

HYSA vs Fixed Deposit Account: Which is Better for Savings?

Admin — Tue, 19 May 2026 09:32:41 +0000

HYSA vs Fixed Deposit Account: Which is Better for Your Savings in Singapore?

Savings rates in Singapore have shifted considerably over the past few years, rising sharply from 2022 as global interest rates climbed, and softening again through 2025 and into 2026. That shifting environment has given savers more reason to think carefully about where their money sits and, specifically, whether a high-yield savings account or a fixed deposit account makes more sense for their situation.

Neither is universally better. Each instrument is built around a different set of trade-offs, and the right choice depends on what you need your savings to do. This guide lays out how both work, when each makes sense, and why holding both can give your savings more strength than either on its own.

What Is a High-Yield Savings Account (HYSA)?

A high-yield savings account is a savings account that pays a higher-than-average interest rate while keeping your money fully accessible. There is no lock-in period. You can deposit and withdraw whenever you need to, without penalty.

Within that broad definition, there are two meaningfully different versions in the Singapore market.

Conditional HYSA

These accounts headline strong rates, with leading accounts in Singapore currently advertising anywhere from around 1% to about 4% p.a. depending on the provider and tier, though some advertise higher figures at the top end. Reaching those rates typically requires you to meet a specific set of conditions each month:

Crediting your salary directly into the account
Hitting a minimum monthly credit card spend
Taking up an insurance or investment product with the same institution
Maintaining a minimum account balance

Miss one condition in a given month and your effective rate drops, sometimes significantly. There is also typically a cap on the amount that qualifies for the higher interest rate.

Straightforward HYSA

These accounts offer a competitive rate with no conditions attached. What you see is what you earn each month, regardless of how your financial activity is structured:

No salary crediting requirement
No minimum credit card spend
No insurance or investment tie-ins
No complex tiering to track

The rate is lower than the headline figures on the most aggressive conditional accounts, but it is consistent and predictable month to month.

What are the Limitations of a HYSA Account?

While the benefit of a HYSA is that your funds are earning interest and always available, there are two trade-offs to consider.

First, the rate is variable. Institutions can adjust it at any time in response to market conditions, so the amount of interest you earn from one month to the next is never guaranteed.

Second, there is usually a cap on the balance that earns the advertised rate, and that cap tends to be lower than the maximum you can place in a fixed deposit. Funds above the cap earn a base rate that is significantly lower.

What Is a Fixed Deposit Account?

In a fixed deposit account, you commit a lump sum to the institution for a fixed period, called the tenor, and in return you receive a guaranteed, predetermined rate for the full duration. That rate is locked in at placement, regardless of what happens to interest rates after you place the deposit.

In a falling interest rate environment, that certainty has real value. If rates decline after you place your fixed deposit, you continue earning the rate you agreed to at the start. Your returns are predictable, which makes cashflow planning easier for the duration of the tenor.

The trade-off is liquidity. Your funds are committed for the tenor, typically anywhere from one month to 24 months or longer. Early withdrawal may result in forfeiture of some or all of the interest earned, as well as a possibility of a penalty fee, which makes a fixed deposit account well-suited to money you have set aside and are confident that you will not need to access during the placement period.

When Does It Make Sense to Use a HYSA, Fixed Deposit, or Both?

For most savers, the question is not which instrument to choose but how much of your savings each should hold. The two products are designed around different needs, and they work better together than as substitutes for each other.

The table below sets out the key differences between a HYSA and fixed deposit account, and how you can use both together.

	High-Yield Savings Account (HYSA)	Fixed Deposit Account	Using Both Together
Liquidity	Fully accessible at any time, no penalty for withdrawal	Little to no liquidity as funds are committed for the full tenor; may incur penalty for early withdrawal	Accessible savings in the HYSA; excess funds in the fixed deposit
Interest Rate Certainty	Variable, can be adjusted by the institution at any time	Locked in at placement for the full tenor	Variable rate on your liquid savings; locked rate on your committed savings
Best Use Case	Emergency fund, near-term expenses, ongoing savings buffer	Surplus savings with a defined time horizon; funds you will not need during the tenor	Complete savings strategy with accessible funds for near-term use and predictable growth for longer term, surplus funds
Minimum Commitment	None, deposit and withdraw freely	Minimum commitment consists of a lump sum payment typically from S$1,000 onwards and selected tenure which can be anywhere from one to 24 months or more	Build your accessible savings in the HYSA with no minimum; commit surplus funds to the fixed deposit once you have a lump sum to set aside
Penalty for Early Withdrawal	None	Partial or full forfeiture of interest earned	Risk is contained to the fixed deposit portion; HYSA remains penalty-free

A recommended approach is to keep three to six months of expenses in a high yield savings account where they remain accessible, then place any surplus you are comfortable locking away into a fixed deposit, or a ladder of fixed deposits spread across different tenors. An FD ladder locks in rates across multiple timeframes so portions of your savings mature at regular intervals, giving you periodic access to funds without breaking a deposit early.

The comparison between a fixed deposit vs high yield account is ultimately a choice between certainty and flexibility, and both have a place in a well-structured savings strategy.

Open a HYSA and Fixed Deposit Account That Works Together at SingFinance

If you have decided that a high yield savings account and a fixed deposit account both have a place in your savings strategy, SingFinance offers both products under one roof.

Our GoSavers Account* is a straightforward high interest savings account that pays a competitive rate with no salary crediting requirement, no minimum credit card spend, and no insurance or investment tie-ins. You earn interest every month without having to do anything.

Our Fixed Deposits* starts from as little as S$1,000 and is available with flexible tenors from 1 to 24 months, so you can match your placement to your actual savings horizon. You can place funds online or over the counter at any of our branches, whichever is more convenient.

Because both accounts sit with SingFinance, managing your savings in one place is straightforward. You can keep your accessible funds in GoSavers and your surplus in a fixed deposit account without having to juggle multiple providers or platforms. Plus, you can access both your HYSA and Fixed Deposit account at any time using the SIF Mobile app, making it even more convenient.

*Singapore Dollar deposits of non-bank depositors are insured by the Singapore Depositor Insurance Corporation, for up to S$100,000 in aggregate per depositor per Scheme member by law.

Sing Investments & Finance Ltd is a member of the Deposit Insurance Scheme.

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What Is a Fixed Deposit Account in Singapore?

Admin — Tue, 19 May 2026 03:21:40 +0000

What Is a Fixed Deposit Account and How Does It Work in Singapore?

If your savings are sitting in a standard savings account earning very little interest, you are not alone. Many Singaporeans keep more cash than they need in low-interest accounts, not because they prefer it that way, but because the alternatives feel unfamiliar or unclear. A fixed deposit account is one of the more straightforward options available: you commit a lump sum for a set period, earn a guaranteed rate, and collect your principal plus interest when the term ends.

What Is a Fixed Deposit Account?

A fixed deposit account is a product offered by licensed banks and finance companies where you place a lump sum for a fixed period, known as the tenor, in exchange for a predetermined interest rate. That rate is agreed at placement and does not change for the duration of the term.

Three characteristics define a fixed deposit:

Your capital is protected. You receive your full principal back at maturity.
Your returns are fixed. The interest rate is locked in at placement, regardless of what happens to market rates during the tenor.
Your money is not meant to be accessed before maturity. The structure is designed for funds you are comfortable setting aside for the full term.

In Singapore, fixed deposits placed with full banks and finance companies, except those exempted by the Monetary Authority of Singapore (MAS) are protected under the Singapore Deposit Insurance Corporation (SDIC) for up to S$100,000 in aggregate per depositor per Scheme member by law, making them one of the lower-risk ways to earn a return on cash you will not need in the near term.

How Does a Fixed Deposit Work?

When you open a fixed deposit, you choose the principal amount and the tenor. The interest rate is confirmed when you first open the deposit (otherwise known as “at placement”) and stays fixed for the entire term. In Singapore, tenors typically range from 1 month to 36 months, depending on the institution, giving you flexibility to match the lock-in period to your actual cashflow needs.

Interest is usually paid out at maturity, meaning you receive your original principal plus the interest accrued over the full tenor in a single payment when the term ends. Some institutions offer monthly interest payouts for longer tenors, which may suit savers who prefer a more regular income stream from their deposits, rather than as a lump sum at the end.

Here is how the figures work across a few scenarios:

Principal	Tenor	Interest Rate	Interest Earned	Total at Maturity
S$10,000	6 months	1.25% p.a.	S$62.50	S$10,062.50
S$20,000	12 months	1.30% p.a.	S$260.00	S$20,260.00
S$50,000	24 months	1.35% p.a.	S$1,350.00	S$51,350.00

The figures above use SingFinance’s maximum advertised rate of 1.35% p.a. for illustrative purposes. Actual rates vary by tenor and are subject to change; prevailing T&Cs apply.

What Happens When Your Fixed Deposit Matures?

At the end of your tenor, you generally have three options: withdraw your principal and interest in full, renew your deposit at the prevailing rate for a new term, or allow it to roll over automatically if you set an auto-renewal instruction at placement.

If you choose to renew, it is worth reviewing the current rate before you commit. The rate on offer at rollover may differ significantly from what you locked in originally, particularly when market interest rates have shifted during your term. Unless you actively place a new deposit, auto-renewals are typically processed at the prevailing board rate, which may differ from the promotional rate you originally received.

Thinking of withdrawing your money before the term ends? Most institutions allow you to break a fixed deposit before maturity, but the cost is real. You will typically forfeit some or all of the interest you would have earned, and some institutions may charge an additional penalty fee. Choosing a tenor that genuinely matches your liquidity needs at the point of placement is the cleaner way to avoid this.

How Does a Fixed Deposit Differ from a Savings Account?

The difference between a fixed deposit and a savings account comes down to two things: liquidity and rate certainty.

A savings account is liquid. You can deposit and withdraw at any time, and the institution can adjust the interest rate it pays whenever market conditions change. That flexibility is useful for funds you may need on short notice, but it also means your returns are variable and not guaranteed.

A fixed deposit works in the opposite direction. You commit a sum for a defined period, and in exchange, the institution commits to a rate for that same period. You give up free access to your funds and gain certainty on your return.

	Fixed Deposit	Savings Account
Access to funds	Locked for the tenor	Withdraw anytime
Interest rate	Fixed at placement	Variable, set by institution
Return certainty	Guaranteed for the term	Not guaranteed
Best suited for	Funds you won’t need immediately	Day-to-day and accessible savings

Who Is a Fixed Deposit Best Suited For?

A fixed deposit suits savers who prioritise capital protection and predictable returns over the potential for higher but variable returns. Retirees managing a lump sum, savers working toward a specific goal with a defined timeline, and anyone with idle cash sitting in a standard account earning very little are all natural candidates.

It also works well as a complement to a liquid emergency fund. A sensible approach is to keep three to six months of expenses in an account you can access at any time, and place the portion of your savings beyond that into a fixed deposit. You typically earn a better rate on the money you will not need immediately, while the funds you might need in a hurry stay within reach.

Singapore SMEs with surplus business cash follow similar logic. Placing idle funds in a fixed deposit for a defined period earns a predictable return without taking on market risk, and puts working capital to better use than leaving it in a current or low-interest business account.

Opening a Fixed Deposit Account in Singapore

SingFinance’s Fixed Deposit¹ is a straightforward option for savers who want a guaranteed rate on money they can set aside for a defined period. Key features include:

Minimum placement of S$1,000
Tenures from 1 to 24 months
Competitive interest rates up to 1.35% p.a.²
Available to open online or in person at any of our four branches

To open a fixed deposit account with SingFinance, the process is as follows:

Decide on the amount you want to place (minimum S$1,000) and the tenor that suits your plans.
Visit singfinance.com.sg to apply online, or head to your nearest SingFinance branch to do it in person.
Complete the application with your personal and deposit details.
Fund your placement via FAST, PayNow, or over the counter at a branch.
Receive confirmation of your placement, including your locked-in rate and maturity date.

If you are ready to put your idle savings to work, you can get started with a high-interest fixed deposit account online in a few minutes.

¹Singapore Dollar deposits of non-bank depositors are insured by the Singapore Deposit Insurance Corporation, for up to S$100,000 in aggregate per depositor per Scheme member by law.

Sing Investments & Finance Ltd is a member of the Deposit Insurance Scheme.

²Rates are indicative, subject to change, and prevailing T&Cs apply.

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How to Build An Emergency Fund in Singapore

Admin — Tue, 12 May 2026 02:17:20 +0000

How to Build an Emergency Fund in Singapore (And Where to Keep It)

The Ministry of Manpower reported 14,490 retrenchments in Singapore in 2025, up from 12,930 the previous year, with PMETs taking the sharpest hit at 10.1 layoffs per 1,000 resident workers. Fewer than 56% of those retrenched re-entered employment within six months.¹

For anyone without an emergency fund, a single redundancy letter can mean reaching for credit cards or personal loans to cover rent, utilities and groceries while job hunting. That’s the gap an emergency fund exists to close.

Why Do You Need an Emergency Fund in Singapore?

An emergency fund is cash set aside from your regular income for unplanned expenses you can’t defer. Think sudden loss of income, an urgent home repair or a hospital admission that exceeds your MediShield Life cap.

The Household Expenditure Survey 2023 put average monthly household spending at S$5,931.² Singapore’s recent retrenchments have concentrated in Financial Services, Professional Services and Information & Communications sectors that employ many mid-career professionals.³Replacing that income takes time, often more than a single quarter.

The less-discussed benefit is psychological. Households without a buffer tend to make worse financial decisions under pressure. This includes accepting any job instead of the right one, drawing on credit cards with high interest rates and breaking long-term investments at a loss. A fund that can cover essentials for several months removes that pressure.

How Much Should You Have in Your Emergency Fund?

If you’re wondering how much is enough for an emergency fund, the standard rule of three to six months of expenses holds up in Singapore. However, the right figure depends on who relies on your income and how stable it is.

Dual-income households with stable employment: Three months of expenses is a reasonable floor.
Single-income households and sole earners supporting dependents: Aim for six months.
Freelancers, commission-based earners and self-employed individuals: Six to twelve months, because income volatility stacks on top of job loss risk.
Households with older dependents and/or children with special needs: Lean towards the higher end.

Calculate based on essential monthly expenses, not income. Add up the non-negotiables: rent or mortgage, utilities and food. Include transport, insurance premiums, school fees and any outstanding loan repayments. Discretionary expenses like dining out, subscriptions, travel and shopping don’t belong in this calculation.

A common mistake when calculating how much to save for an emergency fund is using take-home salary as the base. Someone earning S$6,000 a month but spending S$3,800 needs an S$11,400 to S$22,800 fund, not S$18,000 to S$36,000. There needs to be a balance: oversaving in a liquid account means underinvesting for longer-term goals.

How Do You Start Saving and Building an Emergency Fund in Singapore?

Work backwards from the target. Someone with S$3,800 in monthly essentials targeting three months needs S$11,400. Setting aside S$500 a month gets there in under two years; S$1,000 a month gets there in under a year.

A simple milestone table keeps the goal concrete:

Milestone	Months covered	Target (at S$3,800/month)
Mini fund	1	S$3,800
Starter	3	S$11,400
Standard	6	S$22,800
Extended	12	S$45,600

Three habits move the needle more than any other:

Automate the transfer on payday: Set up a standing instruction that moves a fixed sum into the fund the day salary lands removes the decision entirely. Treat it the way you treat CPF: it happens before you see the money.
Redirect windfalls: Bonuses, GST Voucher payouts, income tax refunds, Ang Bao money and any unexpected reimbursement go straight to the fund until the target is hit. Windfalls are the fastest path to the first three months.
Keep the fund in a separate account: Money sitting in the same account as everyday spending gets eaten by lifestyle creep. A dedicated account (ideally a high-interest savings account at a different institution) adds just enough friction to prevent casual dipping.

Where Should You Keep Your Emergency Fund in Singapore?

Three criteria matter when choosing where to keep your emergency fund: liquidity, capital safety and interest rate.

Liquidity: Liquidity means access within one to two working days, ideally immediate. Accounts with early-withdrawal penalties or fixed maturity dates lock up capital that you may need on short notice.
Capital safety: The balance of your emergency fund shouldn’t fluctuate with markets. Emergency fund capital shouldn’t sit in equities, unit trusts, cryptocurrency or any investment where the value on a bad week could be materially lower than what you paid in. Fixed deposits meet the safety test but usually forfeit accrued interest if broken early. Singapore Savings Bonds are redeemable monthly without penalty, but funds are only returned by the second business day of the following month.
Interest Rate: A meaningful rate matters because emergency fund capital may sit idle for long stretches. Across savings accounts, fixed deposits, and Singapore Savings Bonds, rates can vary widely. Compare the headline rate against the conditions required to earn it; an unconditional rate is often more valuable than a higher conditional one you may not consistently qualify for.

One caveat when comparing rates: bonus-tier accounts advertise headline rates of 4% or more, but those rates apply only when you meet multiple conditions each month, such as salary crediting, minimum credit card spend, bill payments and more. Miss one, and the effective rate drops sharply.

For an account with the sole purpose of holding an emergency fund, a high-interest savings account without conditional hurdles is the most straightforward option.

A Simple Place to Start

Building an emergency fund isn’t glamorous. It’s a standing order and the discipline to leave it alone until it’s needed. The payoff shows up when you don’t have to take a payday loan upon retrenchment, when you turn down a bad job because you can afford to wait, and when you are able to pay off a hospital bill without dipping into your retirement savings.

If you’re looking for a place to hold your emergency fund that keeps things straightforward, SingFinance’s GoSavers Account is worth considering. It pays a competitive interest rate without salary crediting, minimum credit card spend or product-bundling requirements. Speak to a SingFinance Officer to open an account or begin your application online today.

Singapore Dollar deposits of non-bank depositors are insured by the Singapore Deposit Insurance Corporation, for up to S$100,000 in aggregate per depositor per Scheme member by law.

Sing Investments & Finance Ltd is a member of the Deposit Insurance Scheme.

References

1- Ministry of Manpower (MOM), March 2026

2- SingStat, 2023

3- Ministry of Manpower (MOM), March 2026

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Cambodia and Singapore Foster Stronger Trade Ties with Financial Transparency Corridor: SingFinance Participation

Admin — Wed, 19 Jun 2024 06:22:05 +0000

SingFinance is proud to announce its participation in the Financial Transparency Corridor (FTC), established under the supervision of the National Bank of Cambodia and the Monetary Authority of Singapore, is now fully operational in its first pilot phase, powered by Proxtera’s digital infrastructure.

The FTC facilitates communication and information exchange between financial institutions (FI) in both countries, fostering trust and transparency, empowering them to better assess risks and provide enhanced and faster financing for SMEs engaged in cross-border trade.

“Being part of the FTC ecosystem is an honour for SingFinance. We are confident that this digital infrastructure will enhance our credit assessments, empowering our robust AML and KYC processes for financing trades in ASEAN and other growth regions. This aligns perfectly with our strategic focus on digital transformation and our commitment to supporting local SMEs in expanding businesses beyond Singapore,” said Mr. Lee Sze Siong, Deputy CEO of Sing Investments & Finance Limited (SingFinance).

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Meet a Refreshed Sing Investments & Finance Limited

Admin — Thu, 21 Mar 2024 10:05:54 +0000

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Sing Investments & Finance bagged two awards at the SIAS Investors’ Choice Awards 2022

Admin — Mon, 24 Oct 2022 08:38:49 +0000

Sing Investments & Finance Limited has clinched not one but two awards at the SIAS Investors’ Choice Awards 2022 ceremony. Kudos to the SIF team!

Winner of Shareholder Communications Excellence Award (Small Cap)
Runner-up of Singapore Corporate Governance Award (Small Cap)

SIF Deputy Managing Director, Mr Lee Sze Siong, is honoured to receive the awards from the Guest of Honour, Mr Alvin Tan, Minister of State, Ministry of Culture, Community and Youth & Ministry of Trade and Industry.

These awards inspire us to continue to do even better for our stakeholders, customers and staff.

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Winner of the Best Managed Board Award (Silver)

Admin — Wed, 31 Aug 2022 08:40:23 +0000

Sing Investments & Finance Limited is honoured to receive the Best Managed Board Award (Silver) at the Singapore Corporate Awards 2022, held at the Ritz Carlton Millenia Singapore on 30 August 2022.

The event was co-organized by The Business Times, ISCA and the Singapore Institute of Directors. The award recognizes exemplary corporate governance practices in Singapore-listed companies.

Mr Lee Sze Leong, our Managing Director, said: “For us, it goes back to our strong governance practices and founding values – integrity, trust and accountability. While we stay nimble and business operations change with market forces, our values and good governance are the pillars that unite everyone to move in the same direction, with the same purpose, in rising up to challenges.”

We stay committed to building a resilient and sustainable business for the benefit of all our stakeholders.

Thank you for your trust and confidence in us.

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SIF won the Corporate Excellence and Resilience Award asdfasdf

Admin — Thu, 18 Nov 2021 08:41:14 +0000

We are glad to share that Sing Investments & Finance Limited has emerged as one of the winners of the Singapore Corporate Awards 2020/2021, Special Edition, Corporate Excellence and Resilience Award for companies with market capitalisation of less than $300 million.

The pandemic has affected companies in different ways and this award is to recognise exemplary companies that have upheld best practices in corporate governance and shown leadership, innovation and resilience during this time.

We stay committed to building a resilient and sustainable business for the benefit of all our stakeholders.

Thank you for your trust and confidence in us.

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Winner of the Singapore Corporate Governance Award 2021, Small Cap Category

Admin — Wed, 13 Oct 2021 08:42:22 +0000

Sing Investments & Finance Limited is honoured to be conferred with the prestigious Singapore Corporate Governance Award 2021, Small Cap Category at yesterday’s Investors’ Choice Awards 2021 presentation ceremony.

The Singapore Corporate Governance Awards recognise exemplary corporate governance practices for listed companies in Singapore. We will continue to embrace good corporate governance practices for the benefit of all our stakeholders.

Thank you for your trust and confidence in Sing Investments & Finance Limited.

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Update on Terms & Conditions

Admin — Tue, 14 Jul 2020 06:47:41 +0000

We have updated our terms and conditions. Please click Terms & Conditions Governing Savings and Fixed/Call Deposit Accounts or E-Services Terms & Conditions For Individual Customers to view the revised version.

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