Time deposits have long been a favorite investment instrument for Indonesians due to their safety and ease of management. Many conservative investors choose deposits because of their low risk and fixed monthly interest.
However, in recent years, ORI (Obligasi Negara Ritel Indonesia) has emerged as a new favorite among individual investors, including millennials.
Both offer security and fixed income. The difference is that ORI bonds have the potential to deliver more attractive returns, while also giving investors an opportunity to contribute directly to national development.
So, what are the key differences between deposits and ORI—and when is the best time to choose one over the other?
What Are Time Deposits and ORI Bonds?
To decide which is better—deposits or ORI—it’s best to first understand each instrument:
Definition of Time Deposits
A time deposit is a term savings product offered by banks. Investors (or customers) place funds for a fixed period—e.g., 1, 3, 6, or 12 months—and receive fixed interest as agreed. Deposit funds generally cannot be withdrawn before maturity, unless you accept an early-withdrawal penalty.
The strengths of deposits are predictable returns and high security thanks to coverage by the Indonesia Deposit Insurance Corporation (LPS) up to a certain limit. As such, deposits are often the top choice for low-risk investors.
Definition of ORI Bonds
ORI (Retail Government Bonds) are government securities issued by the Republic of Indonesia for the general public. By purchasing ORI, investors lend money to the state and, in return, receive fixed monthly coupons until maturity.
Key advantages include full principal and coupon security backed by the government. ORI can be purchased online via official distribution partners—banks, securities companies, and digital investment platforms.The minimum investment is affordable, starting from IDR 1 million, making ORI suitable for beginners seeking a safe start.
What They Have in Common: Both Are Safe
Although different, deposits and ORI are both considered safe investment instruments. Here are some similarities you should know:
Guaranteed by Official Institutions
Both are categorized as safe because they are guaranteed by official bodies. Deposits are covered by LPS up to IDR 2 billion per customer per bank, while ORI is guaranteed by the Government of Indonesia, so default risk is extremely low.
In other words, both suit investors who prioritize security and stability.
Provide Fixed Income
Each provides fixed income. Deposits pay fixed interest based on tenor, while ORI pays fixed monthly coupons. Both can serve as stable passive income sources—ideal for those seeking regular cash flow.
Key Differences Between ORI and Time Deposits
Beyond the similarities, the two instruments differ in several important ways:
Minimum Investment and Accessibility
Opening a deposit usually requires a higher initial amount—often around IDR 8–10 million, depending on the bank. By contrast, ORI can be purchased from IDR 1 million, making it far more accessible to the broader public, including first-time investors.
Returns (Coupons vs. Interest)
Deposit interest rates typically track Bank Indonesia’s policy rate.ORI coupons are often higher than deposit interest and are fixed rate for the entire investment period, making returns insensitive to rate fluctuations. In a declining interest-rate environment, ORI can offer relatively higher returns than deposits.
Liquidity and Flexibility
Deposits are illiquid; funds are available only at maturity (or subject to penalties if withdrawn early). ORI offers greater flexibility: after the mandatory holding period, ORI can be traded on the secondary market. You may sell before maturity if you need liquidity or wish to realize gains earlier.
Tax Treatment
Tax also differs. Deposit interest is taxed at 20%, while ORI coupons are taxed at 10%. This means ORI investors can enjoy higher net returns than depositors at the same nominal rate.
When Should You Choose a Time Deposit?
Time deposits are ideal for individuals with low risk tolerance. They provide high security and predictable outcomes, making them suitable for short- to medium-term stability. Consider deposits when:
Best for Conservative Investors
Choose deposits if you prefer no market risk and are comfortable with fixed interest. They’re ideal for short- to medium-term parking of funds without the concern of price volatility.
Option for Short-Term Emergency Funds
Deposits can also serve as a short-term emergency fund solution. With relatively short tenors and stable interest, you can maintain liquidity with low risk. Just ensure your bank is reputable and LPS-insured.
When Should You Choose ORI Bonds?
If you’re seeking a safe instrument with higher potential returns than regular savings, ORI is an attractive option. With fixed monthly coupons, ORI suits investors who want stable passive income while supporting national development.
Consider ORI when:
Best for Medium-Term Goals
If you have 3–5 year financial goals, ORI can be the right fit. In addition to fixed monthly coupons, ORI often offers higher potential returns than deposits.
By buying ORI, you also participate in national development, as proceeds fund government strategic projects.
For Investors Seeking Monthly Passive Income
ORI is ideal if you want automatic monthly income without active management. Coupons are credited to your account every month, providing steady additional cash flow.
ORI also strengthens diversification—low risk yet attractive returns—within a balanced portfolio.
Choose the Instrument that Matches Your Goals and Risk Profile
With easy online purchasing and affordable minimums, ORI has become highly relevant for modern investors.
For a safe, transparent, and convenient start with ORI, DBS Treasures Priority Banking can be your trusted partner.
With DBS Treasures priority banking, you can invest in government bonds easily and confidently. ORI provides regular coupon income, giving you stable passive cash flow—plus potential capital gains if you sell at favorable market prices.
An additional advantage is the competitive coupon rate, often higher than average time-deposit interest, so your returns can be more optimal without excessive risk.
All transactions are free of additional charges and available 24/7 via the DBS digibank app—practical, secure, and transparent. Within one app, you can buy, sell, switch, and complete Single Investor Identification (SID) registration. You can also connect to a curated range of mutual funds from leading fund houses and investment managers by product category.
You’ll receive curated market insights from DBS financial experts—powered by AI/ML—tailored to your risk profile and portfolio needs. These insights are complemented by Grow (investment) and Protect (insurance) solutions, helping you act quickly and confidently through your preferred channels.
Begin your ORI investment journey today with DBS Treasures priority banking. Click here for more product information!
