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Step-Up Deposit FAQ
 

1.What is step-up fixed deposit?

Step-up Fixed Deposit is the deposit which generates corresponding fixed interest rate for each completed cycle. The accrued interest will be credited to the customer’s current account on the following banking day after the end of each cycle. If that day falls on a public holiday, the payment date will be on the next banking day.

2.What kind of step-up fixed deposit do we offer?

The Step-up Fixed Deposit can either be one-year or two-year tenure. The one-year step-up fixed deposit consists of four cycles, each of which contains 3 months. The two-year step-up fixed deposit also consists of four cycles, each of which contains 6 months.

3.How is the interest of step-up fixed deposit calculated?

Example 1: assuming the interest rate structure of one-year step-up fixed deposit as following:

Cycle 1st cycle (1st-3rd months) 2nd cycle (4th-6th months) 3rd cycle (7th-9th months) 4th cycle (10th-12th months)
Minimum deposit of SGD5,000 and above 1.70% 1.90% 1.95% 2.05%

Minimum deposit of SGD5,000 and above  1.70% 1.90% 1.95% 2.05%

For one-year step-up fixed deposit of SGD5,000 and above, interest payable would be calculated as follows =

Principle x 1.80% x No. of days in 1st cycle/365 + Principle x 2.00% x No. of days in 2nd cycle/365 + Principle x 1.90% x No. of days in 3rd cycle/365 + Principle x 2.10% x No. of days in 4th cycle/365

Example 2: assuming the interest rate structure of two-year step-up fixed deposit as following:

Cycle 1st cycle (1st-6th months) 2nd cycle (7th-12th months) 3rd cycle (7th-12th months) 4th cycle (18th-24th months)
Minimum deposit of SGD5,000 and above 0.40% 0.80% 1.30% 2.10%


For two-year step-up fixed deposit of SGD5,000 and above, interest payable would be calculated as follows =

Principle x 0.40% x No. of days in 1st cycle/365+ Principle x 0.80% x No. of days in 2nd cycle/365+ Principle x 1.30% x No. of days in 3rd cycle/365+ Principle x 2.10% x No. of days in 4th cycle/365
Please note that the interest rates in the FAQ are illustrative and the interest rates published in our branches and on the Singapore Branch website shall prevail.

4.What is the difference between the step-up fixed deposit and our normal fixed deposit?

For the normal fixed deposit account, the account holder is to make an initial deposit of the principal sum during inception. Upon maturity, the principal and interest will be repaid to the customer. However, any withdrawal prior to the stipulated maturity date will result in a revision of the interest rates to the prevailing interest rate instead of the pre-determined fixed rate.

For the step-up fixed deposit, the account holder is to make an initial deposit of the principal sum during inception and the interest will be paid at the end of each cycle. In other words, the interest of one-year step-up fixed deposit will be paid every three months, and the interest of two-year step-up fixed deposit will be paid every six months.

5.Is a new account required for the step-up fixed deposit placement? 

Step-up fixed deposit and normal fixed deposit will share one common account. Therefore, there is no need to open a new account for a customer who already has fixed deposit account with us. Please proceed to our counter with your valid verification documents to apply for our step-up fixed deposit account if you do not have a fixed deposit account with us. Alternatively you can choose to do so via internet banking (accessible to our internet banking customers only). For SGD step-up fixed deposit, customer must maintain a current account with us for the purpose of crediting the interest payable.

6. What are the deposit and withdrawal channels for my Step-Up Fixed Deposit?

You can deposit or withdraw your step-up fixed deposit by proceeding to our counter, or via  internet banking or mobile banking app. 

7.Can I withdraw my Step Up Fixed Deposit prior to maturity? How is the interest calculated in such situations?

You can choose to withdraw your step-up fixed deposit earlier. In early withdrawal cases: if you withdraw your deposit in first cycle, the interest will be paid based on the current interest rate due to failure in completing a single cycle; if you withdraw your deposit after the second cycle, full interest will be paid for all completed cycles and interest for incomplete cycles will be subject to the interest rate in the previous cycle prorated by the number of completed days in the current cycle.

For example, if you decide to terminate the 2-year tenure SGD step-up fixed deposit on the 20-Apr-2019 with principal of SGD10,000 deposited on 01-Mar-2018

Interest payable is calculated as follows:

10,000 x 0.40% x 184/365 + 10,000 x 0.80% x 181/365 + 10,000 x 0.80% x 51/365 = 71.01 (rounded)

8.Am I able to do a partial withdrawal from my Step-Up Fixed Deposit?

We regret to inform you that the step-up fixed deposit can only be withdrawn as a whole.

9.Can I choose to auto-renew my step-up fixed deposit?

Your step-up fixed deposit placed over the counter will be auto-renewed provided that you have chosen the option for auto-renewal upon maturity. There will be no auto-renewal for step-up fixed deposits placed via internet banking or mobile banking app, and the deposit will be returned to your current account when it matures.

The interest rate applicable upon renewal would be based on the prevailing rates for the same tenor at the time of renewal.


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