A finance company fixed deposit works much like a bank fixed deposit: you place Singapore dollars for a set term at a fixed rate, and the deposit is insured up to S$100,000. The main differences are in how rates are offered, how you place and withdraw, and the size of the branch network.
We compared the two finance companies whose rate pages we opened in November 2026, Hong Leong Finance and Sing Investments & Finance, with the banks’ own pages that day.
What a Finance Company Is
Finance companies are licensed by the Monetary Authority of Singapore to take deposits and lend. Hong Leong Finance’s site, for example, lists car, property and business loans alongside its deposit accounts. You can check any provider’s licence in the MAS Financial Institutions Directory.
For a saver, three points matter:
- Deposit insurance: MoneySense says finance companies in Singapore are required to be members of the Deposit Insurance Scheme. Both Hong Leong Finance and Sing Investments & Finance state that SGD deposits are insured up to $100,000.
- Tax: IRAS lists interest from deposits with finance companies licensed in Singapore as not taxable for individuals, the same as deposits with approved banks.
- Scale: they have fewer branches than the large banks, and some services need a branch visit.
Finance Company Fixed Deposit vs Bank: Rates Compared
Rates are % a year at the time of writing (November 2026), for an ordinary personal customer.
| Provider | 12-month board rate | 12-month promotional or special rate | Minimum for that rate | Channel |
|---|---|---|---|---|
| Hong Leong Finance | 0.25% (to $50,000) | 1.90% | $20,000 | HLF Digital or branch ($100,000 at branch) |
| Sing Investments & Finance | 0.25% ($500 to under $50,000) | 1.95% | $10,000, fresh funds | Online or branch |
| CIMB | 0.30% | 2.30% | $10,000 | Online |
| OCBC | 0.10% (above $20,000) | 1.85% | $20,000, fresh funds | Online |
| UOB | 1.00% (below $50,000) | 1.70% | $10,000, fresh funds | UOB TMRW app |
Hong Leong Finance also offered 2.08% for eight months on at least $20,000 of fresh funds, placed at a branch or online. Full tables for every provider are in this month’s FD rates.
The short version: For deposit insurance and tax, a finance company fixed deposit is treated like a bank fixed deposit. The choice comes down to the rate on the day, the minimum, how you place and withdraw, and how the deposit renews.
Where Finance Companies Differ
Rates without a short end date. Sing Investments & Finance calls its online and branch rates “daily special” rates, with no promotion end date shown; they are “subject to change without prior notice”. Hong Leong Finance says its promotions run “from 23 Oct 2026 till further notice”. Bank promotions in November 2026 often had fixed windows, such as Standard Chartered’s 3 to 19 November.
Low minimums on board-rate deposits. Hong Leong Finance accepts $500 for tenors of three to 36 months ($10,000 for one or two months). Sing Investments & Finance’s board rates start at $500.
Senior bonus. Hong Leong Finance adds 0.125% a year to its board rate on deposits up to $50,000 for customers aged 55 and above, for 12 months or longer, placed at a branch. On a 12-month board rate of 0.25%, that makes 0.375%, still below the promotions.
Early withdrawal. Sing Investments & Finance says early withdrawal loses accrued interest and “a levy may apply”, and you visit a branch with your original NRIC. Hong Leong Finance pays no interest on premature withdrawal after a deposit has been auto-renewed. Compare banks in our early withdrawal guide.
Renewal. Sing Investments & Finance says automatic renewals are at prevailing board rates. That is also true at most banks, so a renewal reminder matters either way.
Worked Example: S$30,000 for 12 Months
Illustration only, simple interest, held to maturity, rates at the time of writing (November 2026).
| Option | Rate | Interest |
|---|---|---|
| Sing Investments & Finance online | 1.95% | $585 |
| Hong Leong Finance online | 1.90% | $570 |
| CIMB online promotion | 2.30% | $690 |
| Hong Leong Finance board rate | 0.25% | $75 |
The gap between a finance company’s special rate and the top bank promotion was $105 a year on this sum. The gap between any special rate and a board rate was far larger.
Who Each Suits
A finance company fixed deposit can suit you if:
- you want a rate that is not tied to a short promotion window;
- you are spreading savings across several Scheme members to stay within the $100,000 insurance limit (see our SDIC deposit insurance guide);
- you live or work near a branch, if you expect to need one.
It may not suit you if you want everything in one banking app, or need same-day access, which no fixed deposit gives.
What To Do Next
- Check the provider’s licence in the MAS Financial Institutions Directory and its deposit insurance notice.
- Compare the rate at your amount and tenor on the provider’s own page on the day you place.
- Weigh fixed deposits against government securities in our comparison of T-bills, Savings Bonds and fixed deposits.
