Fixed deposits suit many retirees for one reason: the amount you get back is known and, for Singapore-dollar deposits up to S$100,000 per bank, insured. They are less suited to being your only source of income, because the rate resets at every renewal and may be lower next time.
This guide sets out what fixed deposits for retirees offer, how they compare with CPF, and how to keep cash reachable. It is general information, not a recommendation.
What Fixed Deposits Offer Retirees
- Certainty. The rate is fixed for the term. You know exactly what you will have at maturity.
- Insurance. Singapore-dollar deposits are insured up to $100,000 per depositor per bank or finance company, according to MoneySense. Our SDIC deposit insurance guide shows how to spread larger sums.
- No tax. IRAS lists interest from deposits with approved banks and licensed finance companies as not taxable for individuals.
What they do not offer: protection from inflation over long periods, or access before maturity without losing interest.
Senior Rates on Offer (November 2026)
Two providers show a bonus for older customers on their own pages, at the time of writing (November 2026):
| Provider | Who qualifies | Bonus | Conditions |
|---|---|---|---|
| DBS Premier Income Account | Aged 55 and above | +0.10% a year on the prevailing board rate | SGD fixed deposit, 6 months or longer, from S$10,000 per placement |
| Hong Leong Finance | Aged 55 and above | +0.125% a year on board rates | Deposits up to $50,000, 12 months or longer, placed at a branch |
These bonuses sit on top of board rates, which are low. DBS’s 12-month board rate is 1.00% when your total fixed deposit balance is under $20,000 and 0.05% from $20,000, so its senior rate works out to about 1.10% or 0.15%. Hong Leong Finance’s 12-month board rate up to $50,000 is 0.25%, so its senior rate is 0.375%. Promotions for new money, open to all ages, paid up to 2.30% the same day; see this month’s FD rates.
The short version: Senior bonuses add a tenth of a percent or so to a low board rate. For most retirees, the rate on the day, the deposit insurance limit and keeping some money reachable matter more than an age bonus.
How Fixed Deposits Compare With CPF
CPF Board’s rates for 1 October to 31 December 2026:
- Ordinary Account: 2.5% a year (its legislated minimum).
- Special, MediSave and Retirement Accounts: 4% a year (floor extended to 31 December 2027).
- Extra interest is paid on the first $60,000 of combined balances, with the Ordinary Account’s share capped at $20,000.
Every Singapore-dollar fixed deposit rate we found on 13 November 2026 was below the Ordinary Account’s 2.5%. That is why moving CPF savings into a fixed deposit rarely pays; our OA break-even maths shows the numbers.
The comparison only goes so far. CPF savings are mainly for retirement income, housing and healthcare, and how much you can withdraw depends on your age and retirement sums. Our guide to how much CPF you can withdraw at 55 and 65 explains the rules. A fixed deposit holds cash you already have outside CPF.
Keeping Cash Reachable
Retirees often need money at short notice for medical bills, home repairs or family. Breaking a fixed deposit usually costs the interest earned so far, and on some promotions all of it. Three ways to avoid that:
- Keep a buffer in a savings account before placing anything. Our emergency fund calculator helps size it.
- Ladder the deposits so one matures every few months. Our fixed deposit ladder guide has a worked example.
- Hold part in Singapore Savings Bonds, which MAS lets you redeem in any month without penalty, for a $2 transaction fee.
Worked Example: An Illustrative Retiree With S$150,000
Illustration only, not a recommendation. Assumptions: rates at the time of writing (November 2026) stay unchanged, simple interest, and interest is paid at maturity.
- $30,000 stays in a savings account as a buffer.
- $120,000 goes into four 12-month deposits of $30,000, placed three months apart, split across two providers so neither holds more than $100,000 of her money.
At an assumed 1.90% a year, each $30,000 deposit earns $570 at maturity, or $2,280 a year across all four once the ladder is running. That is about $190 a month on average, but it arrives as four lump sums, not monthly. If rates fall at renewal, the income falls too.
The Scam to Watch For
DBS warns on its fixed deposit rates page that scammers are targeting DBS and POSB customers with fraudulent SMS messages advertising fixed deposits. Banks publish their rates on their own websites and apps. If a message offers an unusually high rate, do not click its link; check the bank’s own site or call the number on the back of your card.
Government Support Is Assessed Separately
For lower-income seniors, CPF Board lists the Silver Support Scheme criteria as age 65 and above, citizenship, lifetime CPF contributions, housing type and household income per person. Bank savings are not among the listed criteria. Our Silver Support guide sets out the 2026 payouts.
What To Do Next
- List your insured deposits by bank and check none is above $100,000, if that matters to you.
- Ask your bank whether you qualify for a senior rate, and compare it with that day’s promotions.
- Set a reminder a week before each maturity date so deposits do not roll over at a low board rate unnoticed.
- For how CPF pays a lifelong income, read what CPF LIFE is and how it works.
