Banks woo savers for fixed deposits as mortgage rates climb

JUST one week after raising mortgage rates, lenders in Singapore are now locked in a competition for cash, luring savers with higher fixed deposit rates just weeks after increasing interest rates on savings accounts.

On Nov 16, OCBC started offering fixed deposit placements for Central Provident Fund (CPF) ordinary account savings, paying 3.4 per cent per annum. The interest rate is higher than the 2.5 per cent being earned for CPF OA savings beyond the first S$20,000 but does not take into account the monthly interest lost when money is withdrawn from CPF.

For its regular fixed deposits, OCBC is offering a promotional interest rate of 3.4 per cent for personal banking customers for 12-month fixed deposits. Premier banking and premier private clients have an interest rate of 3.7 per cent and 3.9 per cent, respectively.