Gold & Silver Loans: Better Returns Than Fixed Deposits Without the Need for the Deposit Insurance Scheme

As global markets remain uncertain and inflation continues to eat into fiat returns, Singaporean savers and investors are finding it increasingly difficult to earn meaningful interest from traditional bank products. Fixed deposits (FDs), once a popular low-risk savings tool, now offer minimal real returns, often below inflation. Worse yet, their security depends heavily on the solvency of banks and a limited deposit insurance scheme.

What if there were an alternative that offered better yields than fixed deposits, while being backed by tangible assets instead of financial promises? Silver Bullion’s Precious Metals Secured Peer-to-Peer (P2P) Loan Program offers exactly that—higher interest returns and superior risk protection through loans that are fully secured by investment-grade bullion.

The Problem with Traditional Fixed Deposits

While fixed deposits are marketed as “safe,” their returns are modest. As of 2025, most Singaporean FDs yield between 1.9% and 2.9% p.a.—barely outpacing inflation, and in many cases, delivering negative real returns.

For example, 10 out of 14 surveyed fixed deposit rates were below 2024’s average inflation (CPI All-Items) of 2.4%. The higher four rates either require high minimum deposits or are promotional rates and are subject to change at the bank’s discretion.

Moreover, FD security is underpinned by the Singapore Deposit Insurance Scheme, which only protects up to SGD 100,000 per depositor per bank. Any amount above that threshold is not covered. Should a bank fail, depositors with larger savings may be exposed to loss.

According to MoneySense, a Singapore government agency website, the Deposit Insurance Scheme exists to guard against the possibility of bank failures.

The MoneySense website warns:

“International experience has shown that banks can fail. Depositors can lose their savings even in reputable and well-supervised jurisdictions. While our banking system remains sound, things can go wrong in today's complex and globalised environment.”

This reliance on the solvency of large financial institutions makes FDs more vulnerable than they appear, particularly during systemic shocks.

A Better Alternative: Silver Bullion’s Bullion Secured P2P Loans

Silver Bullion, one of Singapore’s largest precious metals dealers, offers a solution that bridges safety and good returns through its Bullion Secured Peer-to-Peer (P2P) Loan platform.

The company stores bullion for clients in its Singapore vault, The Safe House, at its headquarters at The Reserve. Vaulted bullion is fully insured and guaranteed to be genuine.

Since its launch in 2015, the company’s Bullion Secured P2P Loan Program has successfully matched nearly SGD 1 billion worth of loans across more than 22,000 loans, with zero loan defaults or late repayments.

This remarkable result is a testament that the Loan Program is safe, and it makes good investment sense: highly liquid and fully-insured investment-grade precious metals vaulted securely in Singapore, collateralizing loans with better returns than fixed deposits.

Yield Comparison: P2P Loans vs Fixed Deposits

Let’s compare the returns of SGD fixed deposits and SGD Bullion Secured P2P Loans:

* FD rates as of May 2025
^ Rates of SGD loans matched in 2025

Examples of Recently Matched Loans

Here are some examples of recently matched SGD loans and the respective lenders’ returns.

Overview of Loan Program Participants

Borrowers and lenders are verified Silver Bullion clients who have satisfied the company’s Know Your Customer (KYC) requirements before they are allowed to participate in the Loan Program.

Clients who store bullion in Silver Bullion’s vault can borrow against their bullion holdings if they require cash to buy more gold and silver, reinvestment, debt consolidation, or other purposes.

Once borrowers obtain a loan, their collateralised bullion is locked by Silver Bullion and cannot be withdrawn or sold while the loan is active. Only when the loan is fully repaid will the borrower’s bullion be available for sale or withdrawal.

Lenders can lend funds through the loan program to earn an interest return, even if they do not store any bullion with the company.

How Lender Funds Are Protected

The loan program protects lenders’ funds in the following ways:

• Borrower Default Risks: Unlike unsecured loans, which have a high risk of borrower default, all our loans are fully backed by precious metals stored in our vaults.
• Borrower Repayment Delays: Should a borrower have insufficient funds to settle a loan, the Sweeper Fund will lend the required amount of funds to the borrower to ensure that the original loan is settled on time, allowing our lenders to always receive their returning funds on time.
• Collateral Loss: All collateral is stored in our highly secure state-of-the-art vaults in Singapore, one of the safest countries in the world. In addition, the collateral is fully covered by insurance, further safeguarding lenders' funds.
• Systemic Crises:  Lenders' funds are not subject to risks stemming from financial crises, such as financial institutions' insolvency, because the secured loan is between individuals (peer-to-peer) and fully backed by physical property in Silver Bullion’s vault.

You Decide on Your Loan Terms

One of the most empowering features of Silver Bullion’s Bullion Secured P2P Loan Platform is the freedom it gives both borrowers and lenders to set their own loan terms—loan amount, tenure (1, 6, 12 or 24 months), and interest rate. 

Participants can also choose their loan currency since loans are available in Singapore dollars, U.S. dollars, and euros.

Unlike traditional banks, where loan conditions are dictated from the top down, this platform operates as a transparent, peer-driven loan marketplace.

This system allows for a dynamic marketplace, where loan matches occur when supply and demand align. It’s a free market mechanism—the more competitive your offer, the faster it will be matched.

For example, a borrower asking for a loan at a higher interest rate may get matched more quickly. Conversely, setting an unrealistically high return expectation as a lender may mean the offer stays unmatched for longer.

You Pay a Fee Only When a Loan is Matched

There are no charges when you list a lending offer or borrowing request on our secured loan platform. You only need to pay a small processing charge when a personal loan is successfully matched.

Our only fee is charged at 0.5% per annum of the loan amount ( 1% for 1-month loans), prorated by the loan duration. This fee is paid at the end of the loan (except for 2 year loans where annual interest and administrative charge are paid annually) and deducted from interest payments.

Start Lending – Earn More, Backed by Real Gold and Silver

In today’s environment of low bank interest rates and rising counterparty risks, traditional fixed deposits may no longer be the safest, rewarding option they once were. Silver Bullion’s Bullion Secured P2P Loan Platform offers a better alternative: higher returns backed by tangible precious metals, not institutional promises.

As a lender, you’re not just earning more—you’re doing so with peace of mind, knowing each loan is fully protected by bullion collateral stored securely in Singapore. You also have complete control over your lending terms, including how much to lend, at what interest rate, and for how long.

It’s time to put your capital to work—safely and profitably.

Visit silverbullion.com.sg/P2P-Market to explore active loan offers. Apply for and fund your S.T.A.R. Storage Account online to begin lending on our Bullion Secured P2P Loan platform.