On the other hand, the economic slowdown has led to a lower demand for loans from the banks.Īs a result, banks may see less of a need to dangle high interest rates to attract deposits.Īre there better fixed deposit alternatives to UOB and OCBC fixed deposit rates? In case you missed it, there was a report earlier this month that Singapore banks are so flushed with deposits that DBS is loaning the Monetary Authority of Singapore (MAS) S$30 billion.ĭBS CEO Piyush Gupta had said in an analyst call in May that the bank had done so as it is “not finding enough opportunities to put the money to work”.ĭata from the MAS shows that total fixed deposits in Singapore have surged to S$858 billion in April 2023 from S$543 billion in May 2022. With inflation remaining high and government bond yields staying elevated, it might be a surprise to many that banks have been lowering their fixed deposit rates. Why are banks lowering their fixed deposit rates? Let us explore why UOB and OCBC might have lowered their fixed deposit interest rates, and what we can do to make our savings work harder. When we went to check the fixed deposit rates offered by other banks, we were likewise surprised to see that OCBC has also lowered its fixed deposit rate to 2.70%.įor many of us who have been enjoying the high fixed deposit rates offered by the banks over the past year, this would undoubtedly be a disappointment. This is lower than the rate of 3.10% previously, and the first time the fixed deposit rate has dipped below 3% this year. When we were checking the bank websites for the latest fixed deposit rates, we were surprised to see that UOB has lowered its 6-month and 10-month fixed deposit rates to 2.70% p.a.

We are always on the lookout for the highest fixed deposit rate in Singapore, as many of you have asked where is the best place to park your savings.

Ocbc fixed deposit rate january 2023