Bank Interest Rates for the Last 10 Years

Bank Interest Rates from Jan 1995 to Jan 2005*

Bank Saving Deposits*

• Jan 1995 - 2.93%
• Peak from Jan to Aug 1998 - 3.49%
• Lowest at - 0.23%
  
• Dec 2005 - 0.30%

Bank Fixed Deposits (12 months)*

• Jan 1995 - 4.23%
• Peak from Jan to Aug 1998 - 5.38%
• Lowest at - 0.72%
• Dec 2005 - 0.86%

As reflected on MAS website, generally interest rates had fallen pretty much. For bank saving deposits, it had dropped from 2.93% to only 0.3%. Which means that for every $1,000 you have in your saving accout, you get an interest of only $3. Gone were the days where you get $29.30 for every $1,000 you save in the bank.

However, interest rate is not the only element that had dropped. The value of money has also fallen. This is due to inflation, whereby prices of goods and services increases. As a result of this, you can buy lesser stuff with the same amount of money. Take a look around you, among many things, petrol prices has risen, utilities bills and transport costs have increased over the years.

Things are not so bad after all, with banks and insurance companies offering numerous financial plans to achieve higher and better interest rates. To name a few, plans include fixed deposits, regular saving plans (RSPs) and investments. However, please be advised that different plans cater to differnt needs and appetities. At the end of day, the plan chosen or recommended must suit the individual's lifestyle or expectations.

*Figures refer to average rates compiled from that quoted by 10 leading banks and finance companies.
(Source: Monetary Authoriy of Singapore, www.mas.gov.sg)