Consider allocating a portion of your portfolio with these deposits with different rates and maturity dates instead of locking a lump sum of money into one. If you are building an investment portfolio, incorporating fixed deposits can add stability since they preserve capital and provide a predictable stream of returns. The fact that there are no fees or charges for such deposits also means they are a lot more accessible than other forms of investments such as trading stocks and futures that impose intermediary fees and commissions. The time frame usually runs between six months to three years tenures with liable penalty if you decide to withdraw before maturity.Īpply for fixed deposits if you prefer low-risk, low-maintenance investments with guaranteed capitals and returns for the cash or CPF-OA that you put in. They are a type of savings account offered by financial institutions with a predetermined period at a fixed interest rate for a minimum deposit sum.

Source: Pexels What Are Fixed Deposits and How They Fit Into Your Investment Portfolioįixed deposits in Singapore are also known as time deposits.