016. MYR vs SGD vs USD: (3) FD Story

016. MYR vs SGD vs USD: (3) FD Story

After knowing money sitting in savings account cannot beat inflation rate in Singapore, I want to look at Fixed Deposit (FD) rate. Again, we get some info from Trading Economics.

It seems like FD rate in Singapore has been quite low, especially after 2008. The mean shows c.1.5% but I think it is unrealistic becasue of the recent lows. Let's take a mean after 2008.

The mean rate is about c.0.3%. Let's look at the banks' rates now.

We can see rates for different bank are quite far to each other. The highest is merely 0.75%. (Malaysian will never imagine FD to pay only 0.75%.)

Let's put things together.
Inflation rate:- 3%
Currency appreciation:- 1.54%
FD rate:- 0.75%

Apparently, FD alone cannot beat inflation.