Singapore Savings Bonds (SSB) vs Fixed Deposit
Compare Singapore Savings Bonds (SSB) and bank Fixed Deposits. Calculate interest growth, lock-ins, and flexible exit rates.
Interactive Comparison Simulator
Adjust the variables below to simulate outcomes, compare interest rates, and see real-time projections.
Side-by-Side Comparison
A direct comparison of features, rules, limits, and eligibility requirements.
| Feature / Detail | Fixed Deposit | Singapore Savings Bonds (SSB) |
|---|---|---|
Capital Lock-in | Locked (penalty applies if withdrawn early) | Flexible (withdraw any month with no penalty) |
Interest Rate Structure | Flat rate for the term | Step-up rate (increases every year you hold it) |
Max Limit | No limit (varies by bank) | $200,000 individual lifetime limit |
Inflation Protection | Low (eroded by inflation) | High (beats inflation long-term) |
Management Effort | None (passive) | Low (automated or index-tracked) |
Pros & Cons Breakdown
Analyze the advantages and drawbacks of each financial product before making a decision.
Fixed Deposit Pros & Cons
Advantages
- Higher upfront rates for short periods (e.g. 6-12 months).
- Simple to open with any local bank.
- Promotional interest rates can be very competitive.
Disadvantages
- Early withdrawal results in loss of interest.
- Short term lengths; must constantly reinvest.
- Rates can drop when promotional periods end.
Singapore Savings Bonds (SSB) Pros & Cons
Advantages
- Flexible exit; withdraw any month with full accrued interest.
- Locked-in rates for up to 10 years.
- 100% government-backed capital safety.
Disadvantages
- Step-up structure means early years have lower rates.
- $200,000 maximum holding limit.
- Subject to application allotments; not guaranteed to get full amount requested.
The Verdict
Choose Fixed Deposit for high short-term yields; choose SSB for long-term flexibility.
Fixed Deposits are better for locking in competitive short-term promo rates. SSBs are superior for building flexible, long-term reserves due to their 10-year term and penalty-free monthly exit.
Choose Fixed Deposit if...
Savers with rigid short-term timelines wanting immediate yields.
Choose Singapore Savings Bonds (SSB) if...
Savers wanting long-term flexibility, emergency cash storage, and government-backed security.
Frequently Asked Questions
Common questions answered regarding Fixed Deposit and Singapore Savings Bonds (SSB).
You can apply for SSBs monthly through local bank ATMs or internet banking using a CDP account linked to your bank account.
Yes, you can request redemption any month before maturity. The cash and accrued interest will be credited to your account, subject to a $2 transaction fee.
This comparison is reviewed regularly and updated when tax laws, interest rates, or contribution limits change in the country.