Chart of the Week: Singapore banks' domestic banking unit CASA deposits gain momentum

Banks in Singapore continue to offer attractive rates.

According to Maybank Kim Eng, growth in fixed deposits fell to 1.6% YoY from Jan’s 5.4%. This reflects the weak appetite for FD as SGD rates stayed flat and promotional rates offered by banks turned less attractive.

"In contrast, demand and savings deposits continue to gain momentum, and grew c.10% YoY respectively. Banks in Singapore continue to offer attractive rates (i.e. higher rates when bundled with credit cards/investment products) to compete for sticky CASA deposits," the analyst said.