Fixed Deposits vs. Funeral Plans: Where Should You Place Your Money?

When planning for the future, many people wonder how best to allocate their spare cash to get the best return on investment. While fixed deposits are a safe choice for stable returns, their returns have been getting lower in recent months. People are looking at alternatives to place their funds to get a better return and funeral plans are one of the instruments people have been considering.

. So, where should you place your money — in fixed deposits or in a funeral plan? Let’s break it down.

1. Purpose of Each Option
* Fixed Deposit (FD): Primarily a financial instrument to grow savings at a low but guaranteed interest rate. It keeps your money safe, but it doesn’t address specific life needs. Furthermore, fixed deposit rates have been decreasing and the tenures for the special rates have been getting shorter and shorter.
* Funeral Plan: Designed specifically to cover funeral costs in advance, shielding your family from both emotional and financial stress when the time comes.

2. Returns vs. Certainty of Costs
* FDs give you modest interest (less than 2% as of now in Singapore). While your money grows slowly, it may not keep up with inflation.
* Funeral costs, on the other hand, rise over time. By locking in today’s rates through preplanning, you effectively protect your family against future price increases — a form of “inflation-protection.”

3. Liquidity and Accessibility
* FDs can usually be withdrawn, but penalties apply for early termination. While accessible, the funds may not be immediately available at the exact moment they’re needed.
* Funeral Plans ensure immediate access to funeral services when the time arises. Instead of scrambling for cash, your family has one call to make — and everything is arranged from the start till the end.

4. Emotional Impact on Loved Ones
* FDs provide money, but no guidance. At the time of need, families must still research, negotiate, and make countless decisions during a highly emotional period.
* Funeral Plans offer more than financial coverage — they provide peace of mind. At Harmony Funeral Care, we guide families step by step, so they can focus on grieving and remembrance, not logistics and money.

5. Flexibility
* FDs are flexible in that you can use the money for any purpose, not just funerals.
* Funeral Plans are specific — but highly customisable. With us, you can tailor your plan to suit religious, cultural, or personal preferences, and even update arrangements as your wishes evolve.

So, Which Is Better?
The truth is, both have their own set of pros and cons. Fixed deposits are ideal for general savings, while funeral preplanning ensures your family is never left with financial and emotional uncertainty. A balanced approach could mean keeping funds in fixed deposits for general needs, while securing a funeral plan to safeguard one of life’s most certain events.

The Harmony Funeral Care Difference
At Harmony Funeral Care, we believe funeral preplanning is a final act of love. Our plans are transparent, reasonably priced, and backed by clear agreements to protect your family. We even include thoughtful touches like complimentary video montages to honour your legacy.
📞 Ready to explore your options? Contact us today at +65 9489 2424 for a free consultation.