<p>For example, Hong Leong Finance has launched a promotional fixed deposit product called Golden 55 Plus for customers aged 55 and above. By depositing more than SGD 50,000 for 12 months, customers can enjoy an annual interest rate of 2.4%; upon maturity of the fixed deposit, the earned interest can additionally enjoy a reward rate of 5%, bringing the effective interest rate to 2.547%. Furthermore, seniors can benefit from stable cash flow, with interest automatically credited to their savings account each month, rather than being paid out at the end of the fixed deposit term.</p>
<h4>Further Reading</h4>
<p>A spokesperson for Hong Leong Finance pointed out that as seniors approach retirement age, it is generally advised that they invest excess funds in low-risk options, as their focus should shift from growth to wealth preservation and obtaining stable, predictable returns. Investing in low-risk options such as fixed deposits and savings accounts helps seniors avoid losses and face market volatility, while allowing easy access to funds for emergency expenses under capital protection.</p>
<p>In the first two months of this year, the amount invested in treasury bills through ordinary accounts was approximately SGD 1.7 billion.</p>
<h3>Malayan Banking's six-month fixed deposit rate reaches 2.90%</h3>
<p>The Central Provident Fund (CPF) Board has closed special accounts (SA) for members aged 55 and above starting this year, creating a wave of business opportunities for banks, which have launched promotional interest rate products for senior customers to attract them to deposit funds. Meanwhile, some banks have observed that more elderly individuals have recently placed their money in fixed deposits.</p>
<p>The CPF ordinary account can be used to invest in low-risk products including fixed deposits, treasury bills, and Singapore government bonds. Data provided by the CPF Board to Lianhe Zaobao shows that the amount invested by CPF members in treasury bills using ordinary account funds increased from approximately SGD 13 billion in 2023 to SGD 17 billion last year.</p>
<p>DBS Premier Income SGD fixed deposit accounts allow customers aged 55 and above to enjoy an additional 0.10% annual interest rate above the current board rates, provided they deposit a minimum of SGD 10,000 for at least six months. This means that customers in this age group can earn an annual interest rate ranging from 2.25% to 2.55%.</p>
<p>Many well-off senior CPF members previously treated special accounts as high-interest checking accounts, depositing surplus funds there to enjoy rates higher than bank fixed deposit rates while having the flexibility to withdraw at any time.</p>
<p>OCBC Bank's Group Wealth Management General Manager, Chen Xiuli, revealed in an interview with Lianhe Zaobao that since the closure of special accounts for Singaporeans aged 55 and above on January 19 this year, there has been a 30% increase in seniors aged 55 and above opening fixed deposits at OCBC Bank compared to the same period last year. However, she noted that this may not be a direct result of the closure of the CPF special accounts
Malayan Banking Berhad (Maybank) is one of the few banks offering higher promotional interest rates, with a six-month fixed deposit rate reaching 2.90%, but a minimum deposit of SGD 20,000 is required, along with other conditions.</p>
<h3>Oversea-Chinese Banking Corporation: Fixed Deposits for Those Aged 55 and Above Increased by 30% Year-on-Year</h3>
<p>After the closure of special accounts, many affluent seniors are considering using excess funds for other investment purposes to earn returns higher than the 2.5% interest rate of the ordinary Central Provident Fund (CPF) account, thus creating business opportunities for local banks.</p>
<h3>Increase in Funds from Ordinary CPF Accounts Invested in Treasury Bills</h3>
<p>A CPF spokesperson pointed out that all investments involve risks, and CPF members should consider factors including the risk-free interest earned from CPF savings, as well as investment costs and fees. They should only invest when they are confident of achieving returns higher than the CPF interest rate.</p>
<p>As the United States enters a rate-cutting cycle, bank fixed deposit rates that exceeded 3% two to three years ago have now disappeared, with current fixed deposit rates for the general public ranging between 2% and 2.30%.</p>
<p>Singapore government Treasury Bills (T-bills) are another favorite among the public. Despite the declining cutoff yield for six-month Treasury Bills, investor interest in such investment tools has not waned; the subscription amount for two batches of Treasury Bills auctioned in February this year first surpassed SGD 20 billion, setting a new record. In the latest auction, the cutoff yield for Treasury Bills fell to 2.56%, yet still attracted SGD 19.8 billion in funds.</p>
<p>Standard Chartered has launched the MyWay savings account with an annual interest rate of up to 3%, attracting high-net-worth seniors to save. Customers earn an annual interest rate of 0.05% on the first SGD 50,000; 0.50% on the next SGD 200,000; 1% on the next SGD 1.25 million; and 3% on the next SGD 3.5 million. When calculating the effective annual interest rate, depositing SGD 5 million actually earns 2.37%. The account has no lock-in period, and the bank also offers free digital fraud prevention insurance for seniors, with a coverage limit of SGD 50,000.</p>
<p>Dawn Lau, Head of Deposits and Home Loans at DBS Bank Singapore, stated in an interview that according to the bank's latest financial health survey, customers aged 55 to 64 tend to invest in fixed-income products, with 73% allocating funds to Treasury Bills
<img src="https://imageproxy.pbkrs.com/https://dss0.zbstatic5.com/s3fs-public/articles/2025/03/23/3bankonline-01_0.jpg/query-MTAwOA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://dss0.zbstatic5.com/s3fs-public/articles/2025/03/23/3bankonline-01_0.jpg/query-MTAwOA"/></p>
<p>The Parliament passed an amendment to the Central Provident Fund Act last October, which will close special accounts for CPF members aged 55 and above starting this year. For members whose retirement account balance does not meet the Full Retirement Sum, the deposits in the special account will be automatically transferred to the Retirement Account (RA) after the closure of the special account. If the Retirement Account has already reached the Full Retirement Sum, the remaining funds will be transferred to the Ordinary Account (OA), which has an annual interest rate of 2.5%, lower than the 4% interest rate of the special account</p>

<p>The Housing Development Board has closed special accounts for members aged 55 and above, prompting local banks to launch preferential products for the elderly, such as Hong Leong Fin's Golden 55 Plus fixed deposit, with an annual interest rate of 2.4%. Seniors can enjoy a stable cash flow, with interest automatically deposited into their savings accounts each month. Banks recommend that seniors invest their funds in low-risk options to preserve value and address emergency expenses</p>

- Hong Leong Finance has launched a fixed deposit product, Golden 55 Plus, for customers aged 55 and above, offering a 2.4% annual interest rate for deposits over 50,000 for 12 months.  
- The closure of special accounts for members aged 55 and above by the Central Provident Fund has led to increased interest in fixed deposits among older adults, with banks introducing attractive rates to capture this market.  
- Additionally, the popularity of Singapore government treasury bills remains high, with record subscription amounts despite declining yields.

Zaobao

Hong Leong Fin

OCBC Bank

Premier

The closure of special provident fund accounts for those aged 55 and above creates business opportunities, local banks launch preferential products for the elderly