Depositing money is something beneficial, especially if you want to have more interest that you may come as passive income. In case of deposit, there is a term called as fixed deposit.
What is it and how does it differ from a regular saving account? This article will explain what Citibank fixed deposit is, how it works, and other relevant information regarding this matter.
What is Fixed Deposit?
A fixed deposit is a bank’s financial product or NBFCs (non-bank financial institutions). This is provided for investors who want to invest their money for a higher interest rate until a certain maturity date (tenure).
In Citibank Singapore, such fixed deposit is called as S$ Time Deposit. With this deposit service, you can save your money with competitive interest rates, which will be beneficial if you want to get a better decent amount of passive income.
How Does a Fixed Deposit Works?
First of all, you should know that there are various tenures for Citibank fixed deposit. These tenures vary from one week only to the maximum 48 months. Each of tenure gives back different interest rates. This will also depend on how much money you are putting into the account.
The minimum amount to open a deposit account is S$10,000, so you cannot get a deposit amount with an amount lower than mentioned. For your information, the Citibank time deposit account holder is available to save their money with this various tenures:
| Deposit Range (% p.a) | S$10,000 to S$50,000 | S$50,000 to S$100,000 | S$100,000 to S$250,000 | S$250,000 to S$500,000 | S$500,000 to S$750,000 | S$750,000 to S$1,000,000 | S$1,000,000 to S$3,000,000 |
|---|---|---|---|---|---|---|---|
| 1 week | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 |
| 2 weeks | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 |
| 1 month | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 |
| 2 months | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 |
| 3 months | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 |
| 6 months | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 |
| 12 months | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 |
| 24 months | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 |
| 36 months | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 |
Citibank Foreign Currency Time Deposit
Currencies Available:
- Euro, Australian Dollar
- New Zealand Dollar
- Sterling Pound
- Swiss Franc
- Japanese Yen
- Hong Kong Dollar
- US dollar
- Offshore Renminbi
- South African Rand
- Canadian Dollar
Minimum deposit: S$10,000
Tenor Available: 1 week, 1, 2, 3, 6, 9, 12 months
In addition, there are also three interest rate levels for a deposit account. The lowest interest rate is 0.05%, rising to 0.08%, and the highest is 0.1%. The simulation sample will be given in the next subheading.
Fixed Deposit Simulation
Let’s say you have money worth S$100,000 and you plan to deposit all of your money into Citibank fixed deposit account. You open a deposit account, and put all of your money into the deposit account on February 1. You pick the 24-month tenure.
There is a board rate calculator on Citibank Singapore website that will give you an insight how much you will earn if you are investing a certain amount of money within certain tenure. According to that calculator, the annual board rate (this rate applies annually) will be 0.1%. Hence, if you are putting away your S$100,000 there, your annual interest is S$100. At the end of maturity period, you will get S$200.
Well, the interest may not be as significant as you think that would be. However, with Citibank fixed deposit, you can avoid using that money for useless expenses. At least, your money is in the safe place with a higher rate of interest than a regular saving. You should make sure that you put a ‘frozen’ amount of money. It means without that sum of money, your business, household needs, and monthly expenses will not be affected.
