Singapore Banks Raise Deposit Interest Rate

Local lenders $UOB(U11.SG)$ and $OCBC Bank(O39.SG)$ have raised rates to as much as 2.6% and 2.3% respectively for a 12-month term, while $DBS Group Holdings(D05.SG)$ , the nation’s largest bank, maintained its highest rate of 1.3%.

UOB has seen a 23% year-to-date growth in its fixed deposit portfolio and may extend its promotional rates beyond September to meet demand, a bank spokesperson said.

“With Singapore’s inflation rate hitting higher levels than before, customers will see a bigger erosion of their cash value over time, and want to ensure the value of their savings can keep up with inflation,” said OCBC’s head of deposits Na Kok Peng. Demand for 12-month tenors at the lender grew 60% in August from July, and close to 150% from June, he said in response to queries.