For example, the interest rates on US dollar fixed deposits offered by local banks have been rising steadily since 2022.

The interest rate on foreign currency deposits offered by local banks may take reference to the respective country’s borrowing rate. The only difference is that instead of the Singapore dollar, you would need to purchase and hold your funds in one of the major foreign currencies offered by the bank. What Are Foreign Currency Fixed Deposit Accounts?įoreign currency fixed deposit accounts function similarly to SGD dollar fixed deposits, as they provide guaranteed interest on deposited funds for a predetermined period with a bank. Here are the best foreign currency fixed deposit accounts for investors who wish to take advantage of the favourable exchange rate to earn higher interest rates. In turn, banks in Singapore are enticing local depositors with attractive interest rates on the major foreign currencies such as the US Dollar (USD), Euro Dollar (EUR), British Pound Sterling (GBP), and Australian Dollar (AUD).

This comes as a result of the Federal Reserve’s action to raise interest rates to combat the runaway inflation.

Foreign currency fixed deposits are the latest investment products that are in hot demand due to the strong local Singapore dollar.