Singapore USD Fixed Deposits Hit 4% Mark Amid Foreign Exchange Risks

The fixed deposit market in Singapore offers attractive rates for US dollar deposits, particularly for those willing to lock in their funds for longer periods. As of August 2026, RHB and Bank of China offer a 4.00% p.a. interest rate on 12-month US dollar fixed deposits, with minimum deposits of $5,000 and $200,000 respectively.

USD fixed deposit rates in Singapore generally outperform SGD fixed deposit rates. However, foreign currency fixed deposits come with inherent risks, including foreign exchange risk. This means that the value of the deposited funds may fluctuate depending on the exchange rate at the time of conversion back to SGD.

To illustrate this, consider a scenario where you deposit $20,000 in a 12-month 4.20% p.a. foreign currency FD. Upon converting the initial amount to USD, assuming an FX rate of 0.775 SGD/USD, you would have $15,500. After one year, the interest earned would be approximately $651, bringing the total to $16,151. If you then convert this back to SGD at a new FX rate of 0.785 SGD/USD, your return on investment would be only 2.873% p.a.

While foreign currency fixed deposits offer competitive interest rates, they are not insured by the Singapore Deposit Insurance Scheme. This means that depositors assume all risks associated with fluctuations in exchange rates and potential losses.