What “early withdrawal” means
Early withdrawal (also called premature withdrawal) is when funds are taken out of a fixed deposit before the agreed maturity date. In Singapore, banks generally allow this, but the return you receive is adjusted and, in some cases, a fee applies.
How penalties and adjustments are usually calculated
- Reduced or zero interest: Many banks pay interest at a lower “board” or savings rate for the period actually placed; some pay no interest if the placement is withdrawn within a short initial window. A few state that interest on early termination is at the bank’s discretion.
- Administrative fee (case-by-case): Some terms and conditions allow an admin fee on early termination. Always review the latest pricing guide.
- Foreign currency deposits: It’s common for prematurely withdrawn foreign-currency FDs to earn no interest and/or incur unwinding costs. Converting back to your home currency may also produce less than your original amount due to exchange rate movements.
- Promotional / step-up FDs: Special offers and step-up structures can have tailored early-withdrawal formulas that differ from standard FDs.
- Partial withdrawals: Many standard FDs do not support partial withdrawals; where they exist, the withdrawn portion often earns no interest.
At-a-glance: early withdrawal rules by major banks
Summary below is for quick orientation only. Exact outcomes depend on deposit currency, tenor and product. Use the “Source” links to confirm details with the bank.
| Bank | SGD FD (early withdrawal) | FCY FD (early withdrawal) | Notes | Source |
|---|---|---|---|---|
| DBS/POSB | Interest recalculated at the bank’s lowest applicable deposit rate. | No interest payable is stated for foreign-currency FDs. | Any applicable early-withdrawal fee is shown during the online request. | DBS Support · DBS Fixed Deposit · DBS FCY FD |
| OCBC | May receive less or no interest; early-withdrawal fee may apply. | Withdrawal at branch; terms vary by product. | Digital step-by-step guide available. | OCBC FAQ · OCBC Guide · OCBC FD Page |
| UOB | No withdrawal fee stated on product page; you may receive less or no interest. | Varies by product; see T&Cs. | T&Cs allow interest to be at bank’s discretion and note a possible admin fee. | UOB FD · UOB T&Cs (PDF) |
| Standard Chartered | If withdrawn before maturity, any interest payable is at the bank’s discretion. | Available in multiple currencies; terms apply. | Overdraft facility up to 100% of deposit (alternative to breaking). | SCB SGD Time Deposit · SCB Time Deposits |
| Maybank Singapore | < 3 months: no interest. ≥ 3 months: pro-rated interest for days placed at the lower of prevailing savings rate or contracted rate. | See product T&Cs. | Rules stated clearly on SGD Time Deposit page. | Maybank SGD Time Deposit |
| CIMB Singapore | Permitted; for Islamic FD (Why Wait FD-i), bank is entitled to a rebate on early withdrawal. | Foreign-currency FD may incur unwinding cost. | Fees can apply to withdrawals by outward remittance. | CIMB FD-i FAQ · CIMB FCFD FAQ · CIMB Fees |
| HSBC Singapore | Premature withdrawal charges may apply; you may receive less than the original placement amount; interest (if any) at bank’s discretion. | Available in multiple currencies; terms apply. | Check the Account User Agreement for the latest formula. | HSBC Time Deposit |
| Bank of China (Singapore) | Recent notice indicates pro-rating of interest (e.g., at lowest tier of savings rate) and, for certain tenors/currencies, no separate penalty charge. | Similar approach for specified FX tenors. | See official notice for the exact table of rules. | BOC Notice (2024) |
| ICBC Singapore | For some step-up FD products, early withdrawal pays interest at the current account rate (or pro-rated by completed cycles). | Terms vary by product. | Check product page for the specific early-exit formula. | ICBC Fixed Deposit (SG) |
Practical ways to minimise or avoid penalties
- Match tenor to liquidity: Keep emergency funds in a savings or high-liquidity account and use shorter tenors for FDs you might need sooner.
- Use a ladder: Split a lump sum across multiple FDs with staggered maturities. Breaking one small tranche impacts less interest.
- Consider product features: Step-up or promotional FDs can have different early-exit rules. Some banks also offer an overdraft secured on a time deposit as a short-term bridge instead of breaking the FD.
- Foreign currency caution: For FCY FDs, factor unwinding costs and exchange rates; many pay no interest if exited early.
- Check the bank’s online flow: Several banks show an on-screen estimate of interest/fees before you confirm withdrawal—review this carefully.
Frequently asked questions
- Does breaking an FD ever reduce the principal?
- Yes, it can. For example, some terms state premature withdrawal charges may apply such that the amount returned can be less than the original placement (e.g., see HSBC’s wording). Always review your bank’s T&Cs for the exact formula.
- Are Singapore FDs insured?
- Singapore-dollar fixed deposits with DI Scheme member banks are covered under the Singapore Deposit Insurance Scheme, generally up to S$100,000 per depositor per member. Foreign-currency deposits are not insured. See the SDIC resources linked below for scope and details.
- Can I make a partial withdrawal?
- Standard FDs often must be withdrawn in full. Where partial withdrawals are supported under a specific product, the withdrawn portion typically earns reduced or no interest. Check your product’s guide and T&Cs.
- How do banks pro-rate interest?
- Common approaches include paying interest for the actual days placed at the lowest applicable savings/board rate, or paying no interest if withdrawn within an initial period. Some banks reserve discretion on the rate applied.
Key takeaways
- Breaking an FD is allowed, but expect reduced returns and, in some cases, a fee.
- Foreign-currency FDs are more likely to pay no interest on early exit and may involve unwinding/FX costs.
- Promotional and step-up products have specific early-withdrawal formulas—check the product page, not just the generic T&Cs.
- Before confirming any early withdrawal online, review the bank’s on-screen calculation of interest and fees.
Official sources & further reading
- DBS — Fixed Deposit Premature Withdrawal (Support), Fixed Deposit page, Foreign Currency FD
- OCBC — Time Deposit FAQ, Withdraw before maturity guide, FD product page
- UOB — Singapore Dollar Fixed Deposit; Additional T&Cs (PDF)
- Standard Chartered — SGD Time Deposit and Time Deposits overview
- Maybank Singapore — SGD Time Deposit (early-withdrawal rules)
- CIMB Singapore — Why Wait FD-i: Early withdrawal, Foreign-currency FD early withdrawal, Accounts fees & charges
- HSBC Singapore — Time Deposit (premature withdrawal terms)
- Bank of China (Singapore) — Notice of revision on premature withdrawal computation
- ICBC Singapore — Fixed Deposit (step-up / early withdrawal illustration)
- SDIC — Deposit Insurance FAQs, Scope of Coverage
