International foreign money mounted deposits see extra takers amid rising rates of interest, sturdy Singdollar

SINGAPORE: Rising rates of interest have been attracting depositors to park their cash in mounted deposits – not simply in Singapore {dollars} but in addition foreign currency.

Take-up charges for overseas foreign money mounted deposits surged final 12 months, with the US greenback, Australian greenback and the British pound among the many in style selections, a number of banks informed CNA.

A few of these currencies now provide increased mounted deposit charges than Singdollar deposits, which inched up above 4 per cent this month.

For instance, OCBC’s 360 account prospects get a promotional price of 5.08 per cent a 12 months for a US greenback mounted deposit with an eight-month tenor, topic to a minimal of US$20,000. Non-360 prospects get a price of 4.88 per cent.

For a six-month deposit, OCBC presents 4.35 per cent for the primary US$49,999.

DBS, the most important financial institution right here, presents 4.41 per cent every year for a six-month US greenback mounted deposit under S$10,000. UOB prospects get 4.34 per cent a 12 months for a placement under US$50,000 over six months. 

A promotion by Customary Chartered this month presents 4.58 per cent for a minimal placement of US$25,000 over three months, and 4.98 per cent for six months. Precedence banking and precedence non-public banking prospects get increased charges of 4.68 per cent and 5.08 per cent respectively.

Mixed with beneficial trade charges because of a powerful Singdollar, curiosity for such mounted deposits has grown, particularly amongst these with overseas foreign money wants like abroad investments, remittances or training bills, banks stated.

DBS stated the variety of its overseas foreign money mounted deposit placements went up by 10 occasions within the second half of 2022 from the earlier six months.

Prospects most popular currencies such because the dollar, Aussie greenback, pound and Hong Kong greenback, as properly shorter tenors which give extra flexibility, stated Mr Brandon Lam, head of deposits and financing options at DBS’ shopper banking group in Singapore.

UOB stated its overseas foreign money mounted deposit portfolio grew by greater than 150 per cent final 12 months. Standard selections embody the US greenback and Australian greenback, that are “extremely traded currencies for funding and financial savings, and in addition utilized in financing bills similar to training”.

OCBC famous that its US greenback mounted deposits grew 4 occasions versus a 12 months in the past on the again of rising rates of interest. The dollar presently makes up three-quarters of the financial institution’s overseas foreign money mounted deposit placements.

The US greenback can also be the best choice amongst prospects of Customary Chartered Financial institution, with bookings for such mounted deposits up thrice within the second half of 2022 in comparison with the primary half of the 12 months.

Banks stated they count on demand for overseas foreign money mounted deposits to proceed this 12 months, particularly within the first half given the difficult funding local weather and as rates of interest keep excessive.