A fixed deposit ladder splits one sum into several fixed deposits that mature at different times, say every three months. You keep earning fixed deposit rates, but you never have to break a deposit to reach part of your money, because one rung is always close to maturity.
It is a way to trade a little interest for regular access. Here is how it works, with numbers from this month’s rates.
How a Fixed Deposit Ladder Works
Take a sum you will not need all at once and divide it into equal parts. Place each part for a different tenor: 3, 6, 9 and 12 months is the classic four-rung ladder.
When the 3-month rung matures, you place it again for 12 months. Three months later the 6-month rung matures, and you do the same. After a year every rung sits on a 12-month tenor, and one matures every three months.
That gives you three things:
- Access without penalty. A quarter of the money is never more than three months from maturity.
- Rate averaging. You place money at four different times, so you are not locked into one month’s rate.
- A decision point every quarter. Each maturity is a chance to compare promotions, T-bills or Savings Bonds.
Worked Example: S$40,000 in Four Rungs
Illustration only, not a guarantee. We use CIMB’s online promotional rates for new money at the time of writing (November 2026), because CIMB offered all four tenors from S$10,000. Simple interest, held to maturity.
| Rung | Amount | Tenor | Rate | Interest at maturity |
|---|---|---|---|---|
| 1 | $10,000 | 3 months | 1.35% | $33.75 |
| 2 | $10,000 | 6 months | 2.20% | $110.00 |
| 3 | $10,000 | 9 months | 2.20% | $165.00 |
| 4 | $10,000 | 12 months | 2.30% | $230.00 |
| Total | $40,000 | $538.75 |
Compare a single $40,000 deposit for 12 months at 2.30%: $920. The first round of the ladder earns about $381 less, because three rungs are shorter and the 3-month rate is low.
From the second year the gap closes. If each rung is renewed for 12 months at 2.30% (an assumption: rates will change), the ladder earns $920 a year, the same as one deposit, while still releasing $10,000 every quarter.
The short version: A ladder costs some interest while you build it, then earns close to the 12-month rate while giving you a maturity every three months. Its value is access, not extra yield.
When a Ladder Makes Sense
- You want access but dislike early withdrawal terms. Some promotions pay nothing if broken early; UOB’s November 2026 promotion, for example, pays no interest at all on early withdrawal. Our guide to breaking a fixed deposit early compares banks.
- You expect to need money in stages, such as school fees each term or renovation payments.
- You are unsure where rates are heading. Spreading placements over time avoids putting everything in at one rate.
It makes less sense for an emergency fund, which belongs in a savings account you can reach the same day. Size that first with our emergency fund calculator.
The Practical Snags
Not every bank offers every tenor on promotion. In November 2026, UOB’s promotion covered 6, 10 and 12 months, and Standard Chartered’s only 12 months. You may need two or three banks to fill a ladder at promotional rates.
Minimums multiply. Four rungs at a $20,000 minimum need $80,000. Check each bank’s minimum before you split; see this month’s FD rates for the current figures.
Rollover rates. Sing Investments & Finance says automatic renewals are at the prevailing board rates, and that is the common pattern. A promotional rung that rolls over at a board rate of 0.25% earns a fraction of what it did. Set a reminder a week before each maturity.
Fresh funds. Most promotions exclude money already at the bank, so a matured rung often cannot be re-placed at the promotional rate in the same bank. Our explainer on fresh funds rules covers what counts.
DBS counts the total. DBS states that rates for new placements and renewals are based on your total SGD fixed deposit balance, not each placement. On its 13 November 2026 board rates, a total of S$20,000 or more earns 0.05% at any tenor, so splitting does not help there.
Deposit insurance. Rungs at the same bank are added together for the $100,000 deposit insurance limit. Spreading rungs across banks can keep each total under it; see our SDIC deposit insurance guide.
Other Ways to Ladder
The same idea works with government securities. Six-month T-bills are auctioned every two weeks, so buying in turn gives regular maturities, and Singapore Savings Bonds can be redeemed in any month. Our comparison of T-bills, Savings Bonds and fixed deposits sets out the rules for each.
What To Do Next
- Decide how often you want money to free up: every three months suits most people.
- Check which tenors each bank is promoting this month and the minimum for each.
- Put every maturity date in your calendar with a reminder a week earlier.
- Test different rates and amounts in our savings account interest calculator.
- If you are retired and drawing on interest, see fixed deposits for retirees, which sets FD income against CPF payouts.
