Singapore Best Foreign Currency (USD) Fixed Deposit Rates [May 2024]

18 April 2024

In an economic climate where interest rates have remained unexpectedly high, the appeal of fixed deposits as a safe haven for savers has significantly increased. This heightened interest spans across both foreign currency fixed deposits and Singapore dollar (SGD) fixed deposits, prompting savers to reassess their investment strategies. 

Following our previous exploration into the competitive landscape of Singapore best fixed deposit rates, the recent indication from the Federal Reserve of possible interest rate cuts in 2024 compels us to pivot our focus towards USD fixed deposits which have been enjoying rather promising interest rates.


  • Anticipate greater volatility in USD fixed deposit rates, as anticipated interest rate cuts could lead to a downturn in US bond yields.
  • The best 12-month USD fixed deposit was 5.0% p.a. offered by RHB, with a minimum deposit requirement of US$5000. 
  • The best 6-month USD fixed deposit rate was 5.25% p.a. from SBI, requiring a minimum deposit of US$25,000. 
  • The best 3-month USD fixed deposit rate was 5.4% p.a. from SBI, requiring a minimum deposit of US$25,000. 
  • Stashaway USD Cash Yield offers 5.3% p.a. yield to maturity, with no minimum, no maximum, and no lock-ins.

Fundamentals of Fixed Deposits

At its core, a fixed deposit is a financial instrument offered by banks that provides investors with a higher interest rate than a regular savings account, until the given maturity date. Investors cannot withdraw funds for a specified period without incurring a penalty. The current high-interest rate environment, spurred by central bank policies aimed at controlling inflation, has made fixed deposits an even more attractive option for savers. Higher interest rates mean that fixed deposits now offer better returns, making them a compelling choice for individuals looking to maximize their savings.

In Singapore, there are two types of fixed interest accounts:

  • Foreign Currency Fixed Deposit = This allows investors to deposit money in a currency other than SGD, potentially benefiting from higher interest rates offered in the currency of a stronger economy or one that is expected to appreciate against the SGD. However, this comes with the added complexity of currency risk; the value of the deposit in SGD terms could decrease if the foreign currency depreciates against the SGD during the investment period.
  • SGD Fixed Deposit = SGD fixed deposits offer stability and are not subject to currency risk, making them a safer bet for conservative investors. However, they may offer lower interest rates compared to foreign currency fixed deposits, particularly in a high-interest rate environment where certain foreign currencies may offer significantly higher rates.

What Exactly is a Foreign Currency Fixed Deposit?

A Foreign Currency Fixed Deposit is a bank savings product that allows you to deposit money for a fixed period in a currency other than SGD, earning interest at a rate determined at the outset. Upon the deposit's maturity, you earn interest in the same foreign currency. This financial product is particularly attractive in times of favorable foreign exchange and interest rate trends, allowing investors to potentially gain not just from the interest earned but also from positive currency movements.

Best foreign currency fixed deposit rate in Singapore [May 2024]

Best 12-month US Dollar fixed deposit rates in May 2024:

BankTenureInterest rate per annumMinimum amount
ICBC12 months4.55% (via e-banking)US$500
Bank of China12 months4.55%US$2,000
State Bank of India12 months4.50%US$25,000
RHB12 months5.00%US$5,000
HL Bank12 months4.70%US$50,000
UOB12 months4.48%US$100,000
DBS12 months4.18%S$5,000 equivalent
UOB12 months4.18%5,000 units of the deposit currency
CIMB12 months4.21%US$10,000

Source: Bank websites as of 1st May 2024

The best 6-month foreign currency fixed deposit rates in US Dollar:

BankTenureInterest rate per annumMinimum amount
State Bank of India6 months5.25%US$25,000
ICBC6 months4.85%US$500
Bank of China6 months4.75%US$2,000
UOB6 months4.69%US$100,000
Maybank6 months4.65%US$10,000
RHB12 months5.00%US$5,000
DBS6 months4.41%S$5,000 equivalent
HL Bank6 months4.64%US$50,000
UOB6 months4.39%5,000 units of the deposit currency
OCBC6 months4.36%US$5,000
CIMB6 months4.24%US$10,000

Source: Bank websites as of 1st May 2024

The best 3-month foreign currency fixed deposit rates in US Dollar:

BankTenureInterest rate per annumMinimum amount
State Bank of India3 months5.40%US$25,000
DBS2 months5.08%S$5,000 equivalent
DBS3 months4.88%S$5,000 equivalent
UOB3 months4.81%US$50,000
ICBC3 months4.85%US$500
UOB3 months4.71%5,000 units of the deposit currency
Bank of China3 months4.80%US$2,000
Maybank3 months4.75%US$10,000
OCBC3 months4.60%US$5,000
HL Bank3 months4.70%US$50,000
CIMB3 months4.37%US$10,000

Source: Bank websites as of 1st May 2024

Beyond the conventional route of bank-based foreign currency fixed deposits, Singaporean investors have the opportunity to pursue potentially higher returns through alternative financial products like the StashAway USD Cash Yield portfolio. This innovative option grants investors access to a portfolio concentrated on short-duration US Treasury bills. A standout feature of StashAway's USD Cash Yield is its attractive yield of 5.3% p.a. yield to maturity.

Distinct from traditional fixed deposits, this investment avenue breaks away from the norm by not enforcing any minimum or maximum investment thresholds and steering clear of lock-in periods, thereby offering greater flexibility and liquidity to investors.

What are the Pros and Cons of Foreign Currency Fixed Deposit

Foreign currency fixed deposits emerge as an enticing option, notably for their potential to offer higher deposit rates. As we explore the landscape of foreign currency fixed deposits, it's crucial to weigh both sides of the coin. Let's delve into the pros and cons of this investment avenue, equipping you with the insights needed to make a well-informed decision.


  • Higher Interest Rates: In economies where interest rates are higher, foreign currency fixed deposits can offer better yields compared to local currency deposits.
  • Currency Appreciation: If the foreign currency appreciates against the SGD, investors can benefit from exchange rate gains in addition to interest earnings.


  • Currency Risk: The principal risk in foreign currency fixed deposits comes from the possibility of the chosen currency depreciating against the SGD, which could erode the value of the interest earned and even the principal amount.
  • Lack of Insurance: Although generic fixed deposit accounts are insured by the Singapore Deposit Insurance for up to S$75,000 in a single account, foreign currency deposits are not covered under the Singapore Deposit Insurance Scheme.

Considering a foreign currency fixed deposit account might be beneficial if you already have USD savings or expenses. It's an attractive option for those willing to wait for favorable exchange rates before converting back to SGD. However, the specific advantages might not extend to everyone, highlighting the importance of aligning such investments with your financial goals and circumstances. 

USD fixed deposits currently offer some of the highest interest rates due to the relatively higher rates in the US. If you're not in a hurry to convert your foreign currency, opting for an account with the highest interest could be wise. Yet, remember that foreign currency deposits come with their own set of risks, including currency fluctuation and the lack of Deposit Insurance Scheme protection. 

It's essential to perform due diligence before diving into foreign currency fixed deposits or any high-interest product. While the lure of higher returns is strong, such options may not suit everyone's risk tolerance or financial strategy. For a safer approach, you might consider SGD fixed deposits or explore cash management accounts for potentially high returns on foreign currency savings with different risk profiles.

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