How Foreigners Can Easily Open a Fixed Deposit in Singapore to Make Their Money Work for Them?

How Can Foreigners Easily Open a Fixed Deposit Account in Singapore to Grow Their Wealth?

As one of the world’s leading financial hubs, Singapore attracts a large number of expatriates due to its stable environment, robust financial system, and diverse range of financial services. For many foreigners living and working in Singapore, growing their wealth in a safe and stable way is an essential part of personal financial planning. Fixed deposits, commonly known as Fixed Deposits or FDs, are a popular choice for many expats due to their low risk and reliable returns.

1. Friendly Banking Policies for Expatriates

Singapore’s banking sector is highly inclusive of foreigners. Whether you're a short-term expat worker or a long-term permanent resident, you can easily open a bank account and apply for a fixed deposit. Major banks such as DBS Bank, OCBC Bank, and United Overseas Bank UOB offer fixed deposit services in multiple currencies, including Singapore dollars SGD, US dollars USD, and Euros EUR, giving international clients the flexibility to choose based on their financial situation.

For example, DBS Bank offers relatively low minimum deposit requirements - typically starting at SGD 1,000 for SGD fixed deposits, with slightly higher thresholds for foreign currency deposits. These requirements are generally not high. Banks also frequently offer promotional interest rates for mediumto long-term deposits, making it even more attractive for customers.

2. Simple and Efficient Process for Opening a Fixed Deposit

Opening a fixed deposit in Singapore is a straightforward process. First, you need to open a savings or current account with a local bank. Required documents usually include your passport, employment pass such as an Employment Pass or S Pass, and proof of address.

Some banks even allow account opening online, which is especially convenient for new arrivals. Once the account is set up, you can transfer funds and apply for a fixed deposit. Most banks offer mobile apps and online banking platforms, allowing you to check interest rates, deposit terms, and manage your deposits with ease.

Additionally, some banks offer auto-renewal features, letting you decide whether to reinvest both the principal and interest upon maturity, saving you the hassle of manual renewal.

3. Fixed Deposit Rates Reflect the Market Conditions

Fixed deposit rates in Singapore are influenced by the broader economic environment and monetary policy. In recent years, as major central banks around the world have raised interest rates, Singaporean banks have also increased their FD rates.

For instance, in mid-2025, some banks offered annual fixed deposit rates on SGD accounts exceeding 3%, which is quite appealing for conservative investors. Since Singapore operates a managed floating exchange rate system, foreign currency fixed deposits may also be affected by exchange rate fluctuations.

Therefore, when considering foreign currency deposits, investors should not only focus on interest rates but also monitor currency trends to avoid potential losses due to exchange rate changes.

4. Favorable Tax Policies for Wealth Growth

Singapore’s tax system is very investor-friendly. Currently, there is no personal income tax on interest earned from fixed deposits. This means that both residents and foreigners can enjoy tax-free returns on their deposits.

In a global context where many countries impose taxes on capital gains or investment income, Singapore’s tax-free policy on interest income makes fixed deposits even more attractive.

5. Flexible Options to Meet Different Needs

Fixed deposit products in Singapore come with a variety of terms, ranging from one month to five years, allowing investors to choose based on their liquidity needs and financial goals. Some banks offer tiered fixed deposit plans, where you can split your funds into different time brackets to enjoy higher average returns while maintaining some level of liquidity.

Additionally, some banks allow early withdrawal, although this may result in reduced interest. Still, it offers a practical solution in case of emergencies. This flexibility makes fixed deposits suitable not only for conservative investors but also for those who want stable returns while managing risk.

6. Combining Fixed Deposits with Other Investment Tools for Diversification

While fixed deposits are safe and stable, their returns are naturally limited. For those aiming for higher growth, fixed deposits can be part of a broader investment strategy. Expatriates can combine FDs with other investment instruments such as mutual funds, bonds, or real estate investment trusts REITs to build a diversified portfolio.

This approach allows you to protect part of your capital while using other investment channels to potentially earn higher returns.

Conclusion

In Singapore, opening a fixed deposit account is not only simple and accessible but also offers clear advantages in terms of interest rates, tax benefits, and policy support. Especially in today’s uncertain global economic climate, fixed deposits serve as a prudent financial tool for expatriates looking to grow their wealth steadily.

With proper financial planning and awareness of market trends, foreigners can achieve steady financial growth in this vibrant financial city.