Should I park My Money in Fixed Deposit?

Updated on 05 Dec 2019

I save my cash in the bank but they pay me very little interest.  💸

So I thought I shall park my money into any fixed deposit to earn some interest.

After I compared the best interest rates in December 2019,  the best offer is from Maybank at 1.90%.  💰

That is relatively low and got to lock in for 2 years!

Alternative to Fixed Deposit?

I will not lock my money there for 2 years with 1.90% interest. So I look around for its alternative.

Then my friend suggested me DBS Multiplier Account.

How DBS Multiplier Account work?

dbs multiplier account

Literally, you need to have monthly salary credit to your account plus transactions in the other categories with DBS/POSB.  The categories include home loan, insurance and investments.

Your monthly transaction amount with DBS/POSB determines your interest.

DBS Multiplier Account

I would suggest if you already have 2 or more existing categories with DBS/POSB, then it is worth it to sign up this account. Otherwise…

How OCBC 360 work?

Otherwise, you may look at the OCBC 360. Their minimum requirement is to credit at least $2,000 monthly salary through GIRO.

They will offer extra bonus if you can fulfill more categories.

But it seems less pressure as you don’t have to hit very high transaction amount to achieve good interest rate.

alternative to fixed deposit

I would recommend to sign up this if your monthly salary is above $2,000 and ready to save more than $35,000. Spending $500 monthly on your credit card and increase your account balance by $500 monthly will also give you more interest.

If you are self-employed or a businessman without monthly salary, you may select UOB One Account.

How UOB One Account work?

If you are self-employed or businessman without monthly salary like me, you can only go for UOB One Account.

Because you can replace the salary credit by 3 GIRO transactions monthly.

alternative to fixed deposit

For this account, you have to spend at least $500 monthly on credit card. Not to worry about the 3 GIRO, you can use it for conservancy charge, PUB, and income tax. Otherwise, you can donate to charity through GIRO. That’s a WIN-WIN-WIN situation, isn’t it?

What did I choose?

For me, as I don’t earn monthly salary, so I’m not eligible for both DBS Multiplier and OCBC 360. And my monthly credit card spending is definitely more than $500.

I have calculated the effective yearly interest for UOB One Account is around 2.7% which is so much higher than the fixed deposit interest. Yet I have the flexibility to withdraw the money at any time.  Thus, I signed up UOB One Account last week.

I know a lot of people now keep their money in the bank earning very little interest. Although this type of account is not something new, it started since 2015. But till date not many people really know about it.

So if you find this article is helpful, please share this to your friends and family.

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Should I park My Money in Fixed Deposit?
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