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Fixed Deposit Letter for Singapore

Fixed Deposit Letter Template for Singapore

A Fixed Deposit Letter is a formal document issued by a Singapore-regulated bank that confirms the placement of a fixed deposit, specifying the principal amount, interest rate, term, and maturity date. The document is governed by Singapore banking laws and regulations, including MAS guidelines, and typically includes details about deposit insurance coverage, early withdrawal conditions, and renewal terms. It serves as official proof of the fixed deposit arrangement between the bank and the depositor.

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Fixed Deposit Letter

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What is a Fixed Deposit Letter?

The Fixed Deposit Letter is a crucial banking document used in Singapore when a customer places a fixed deposit with a bank. It serves as official documentation of the deposit arrangement, capturing essential details such as the deposit amount, tenure, interest rate, and maturity instructions. Subject to Singapore banking regulations and MAS oversight, this document provides legal protection for both the bank and depositor, while ensuring compliance with deposit insurance schemes and banking laws. The Fixed Deposit Letter is particularly important for audit trails, tax documentation, and establishing clear terms for the deposit arrangement.

What sections should be included in a Fixed Deposit Letter?

1. Bank Details: Full legal name and registration details of the bank

2. Customer Details: Full name, identification details, and contact information of the deposit holder

3. Deposit Amount: Principal amount being deposited in figures and words

4. Interest Rate: Agreed interest rate and calculation method

5. Term: Duration of the fixed deposit and maturity date

6. Account Details: Fixed deposit account number and related information

What sections are optional to include in a Fixed Deposit Letter?

1. Early Withdrawal Terms: Conditions and penalties for premature withdrawal, include when early withdrawal might be necessary

2. Renewal Instructions: Terms for automatic renewal, include when automatic renewal is requested by customer

3. Interest Payment Instructions: Specific instructions for interest crediting, include when customer requests special arrangements

What schedules should be included in a Fixed Deposit Letter?

1. Interest Rate Schedule: Detailed breakdown of applicable interest rates for different scenarios

2. Terms and Conditions: Standard terms and conditions of the fixed deposit

3. Fee Schedule: List of applicable fees and charges, including early withdrawal penalties

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Singapore

Document Type

Deposit Form

Sector

Banking

Cost

Free to use
Relevant legal definitions

























Clauses























Industries

Banking Act (Chapter 19): Primary legislation that regulates banking business in Singapore, sets out requirements for deposit-taking institutions, and defines protected deposits under the Deposit Insurance Scheme

Monetary Authority of Singapore (MAS) Act: Governs financial institution supervision, sets regulatory requirements for banks, and provides guidelines on interest rates and banking practices

Deposit Insurance and Policy Owners' Protection Schemes Act: Ensures protection of deposits up to SGD 75,000 and sets out coverage and compensation framework

Contract Law (Chapter 53): Governs formation and enforcement of contracts, determines validity requirements, and regulates terms and conditions

Personal Data Protection Act (PDPA): Regulates collection and use of customer data, ensures privacy protection, and sets out consent requirements

MAS Notice 1111: Covers Risk Based Capital Adequacy Requirements, impacts how banks manage deposits and affects interest rates offered

AML/CFT Regulations: Anti-Money Laundering and Countering the Financing of Terrorism regulations, including Know Your Customer (KYC) requirements and documentation requirements for account opening

Consumer Protection (Fair Trading) Act: Ensures fair practices in banking services and protects consumer interests

Teams

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