What is a Fixed Deposit (FD)
A FD is a type of savings or investment account that guarantees a rate of interest for a fixed period offered by all banks in Malaysia. Unlike most regular savings accounts that calculates interest on a daily basis, no interest is paid to you if you decide to withdraw or uplift just one sen of your money before the end of the FD period, the maturity date . This means a smart investor will only enter into FDs when they are able to put cash aside for the entire period.
Top FD Rates Quick Navigation
Fixed Deposit (FD) vs. Instant access savings (Savings Accounts)
| FD | Normal instant access savings |
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| + Generally higher rate of interest | + Easy access to your savings |
| + Guaranteed interest rate | + Interest calculated daily |
| + Easy calculations for your return | + Generally lower minimum amount to open |
| - Less flexible/liquidity | - Lower rate of interest |
You might think putting your money in a normal savings account means you will get high rates of interest. But let’s take a real life example of the extra money you could be saving with a FD over the savings account from the same banking institution, CIMB Bank with a amount of RM25,000.
| CIMB | Instant Access Savings | Fixed Deposit | Extra RM straight into your pocket! |
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| Interest Rate | 0.40% | 3.00% | |
| 1 Month | RM3.88 | RM62.50 | RM58.67 |
| Interest Rate | 0.40% | 3.05% | |
| 3 Months | RM25.01 | RM187.97 | RM162.96 |
| Interest rate | 0.40% | 3.15% | |
| 12 Months | RM100.18 | RM798.97 | RM698.79 |
The interest rate can vary depending on the length of time you what to keep your money locked up. Normally, the longer the FD time period, the higher the interest rate the banks will offer as represented by the table above. Rates effective as of 17/02/2012.
Why do banks offer higher rates on FD?
It is also very important to know that the longer you fix for, the more you are risking the fact that an unpredicatable future means this could be a bad choice. If interest rates were to increase rapidly, you would’ve lost the flexibility to change and switch to a better FD account without losing the interest that you had earned so far. That is one of the reasons why banks can give you higher interest rates than most savings accounts because you are taking this ‘time risk.’ Furthermore banks don’t pay interest if you withdraw any funds earlier than your selected maturity. This means you have more of an incentive to keep your money with them until the end of the period, thus holding your cash for longer over basic savings account!
Do you depend on savings interest as your income source?
When using fixed rate savings, you won’t usually get paid monthly interest. Therefore many who rely on interest earned from savings as an income stream don’t use FDs, even though they’re paying higher rates. Yet there’s a way to work around this easily.
Here’s an example: Ali has RM100,000, and can get 4% in a 12-month FD and only 1% in an instant access savings account. He would like about RM4,000 of interest from these savings to add to his income for spending. To do this, he should put RM96,000 in the FD, and RM4,000 in the instant access savings. Then spend the instant access money over the year, knowing the RM3,840 interest earned in the fixed account will make up for it. He’ll effectively get the high rate and be spending the interest.
This way you can grab the higher rate FD accounts, but retain access to enough cash in the meantime. Remember though, if you might need to get at the whole lump within the fixed term, this trick won’t help and FDs may not be for you.
Is my money safe in Fixed Deposits?
During the 2008 financial crisis, global banks around the world starting collapsing and since then, people started to question the security of their savings. The possibility of local and foreign banks in Malaysia remaining in business forever is not guaranteed and thus your savings could be at risk should a bank fail. So is your money safe?
The golden rule to saving is to ensure you put your cash into a Malaysia regulated bank that is protected under the Perbadanan Insurans Deposit Malaysia (PIDM) membership scheme. PIDM protects your bank deposits and will promptly reimburse you on your insured deposits should a member bank fail and there is no charge for this insurance protection. Keep an eye out for the logo at your banking institution (image below).
Savings of up to RM 250,000 is guaranteed by the PIDM per institution so if you have less than than, you don’t have too much to worry about. If you have more to save, you can get protection on your entire savings by dividing your savings into several FD accounts/bank institutions.
Example: you had RM1,000,000 and didn’t want to take any risk, you could open 4 separate FDs in 4 separate banks.
Another way to protect your savings is to open joint accounts because they also enjoy separate deposit insurance under the PIDM scheme. You could place RM250,000 into your own FD but also open a joint FD accounts with your father, mother spouse etc.
What you are effectively doing is spreading the risk over many banks and thus not putting all your eggs into one basket. Click
here for a list of all PIDM member institutions.
The Best 1-Month FD Rates – up to 3.26% p.a.
Keeping money in a 1-month FD is a simple way to increase your interest income without having to sacrifice too much short term requirement of funds. By managing your monthly incomings and outgoings you can organise a different 1-month FD every month and still have access to your funds when you need it on one day each month.
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Interest Rate: 3.26% p.a
Minimum Deposit: RM 5,000
Minimum Age Requirement: 18 yrs
Tenure: 1-month
Features: - Bank Rakyat Qiradh GIA
1. Investors can take profits of each month for a period of 6 months with an investment of RM20, 000.00 and above.
2. Automatic renewal of certificates.
3. Investment certificates can be used as collateral for such financing: Secured Investment Certificate-i Al-Mudharabah, Education Financing-i Al-Falah and Contract Financing-i Tijari.
Bank Rakyat Qiradh GIA (Mubeen)
1. Profits will be given upfront to the depositors on a monthly basis as declared by the Bank beforehand.
Calculated Interest:
| Bank Rakyat GIA-i | 0.268% | 3.26% p.a. |
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| Deposit Amount | 1 month Interest | 12 months interest |
| RM10,000 | RM26.77 | RM326.00 |
| RM50,000 | RM133.85 | RM1,630.00 |
| RM100,000 | RM267.69 | RM3,260.00 |
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Bank Rakyat’s Qiradh General Investment Account-i is the market leader at 3.26% p.a, outfoxing it’s nearest competitors by a significant margin ( most other banks hover around the 2.90%-3.00% rate to Affin Bank’s 3.06% p.a.) However, our main concern is with their PIDM status. As Bank Rakyat is a Cooperative Bank, they are not covered under this explicit guarantee. As such, you will only get implicit protection from the Ministry of Finance under the Development of Financial Institution Act (DAFIA).
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Interest Rate: 3.06% p.a
Minimum Deposit: RM 5,000
Minimum Age Requirement: 18 yrs
Tenure: 1-month
Features:1. Flexible period of investment from 1 month to 60 months and allow you to make partial withdrawals.
2.Automatic renewal upon maturity.
3.Profit earned can be automatically credited into your Current Account and Saving Account.
Calculated Interest:
| Affin Islamic GIA | 0.251% | 3.06% p.a. |
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| Deposit Amount | 1 month Interest | 12 months interest |
| RM10,000 | RM25.15 | RM306.00 |
| RM50,000 | RM125.75 | RM1,530.00 |
| RM100,000 | RM251.49 | RM3,060.00 |
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Affin Islamic Bank’s rate of 3.06% p.a is market leading among the more established banks in the industry, but only marginally. Most large banks in Malaysia offer between 2.90%-3.00% for 1-month FDs.
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The Best 1-month FD rate for Senior Citizens
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Interest rate: 3.1% p.a
Minimum Deposit: RM30,000
Minimum Age Requirement: 50 yrs
Tenure: 1-month
Features:1. Optional overdraft facility of up to 100% margin at attractive rates.
2. No introducer is required if you wish to open a current account.
3. Waiver of service charge for current account.
4. Special discounts applicable to accountholders aged 50 years and above:
- 50% discount on commission for purchase of Travellers’ Cheques.
- 50% discount on rental and renewal of a safe deposit box for 2 years, where available.
- 50% discount when making a Will or creating a Trust with PB Trustee Services Berhad.
- 1/8% off the Bank’s prevailing selling rates for purchase of foreign currency notes.
- Discounts on the following insurance products with Lonpac Insurance Berhad:-
| Type | Discount Rate |
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| Householders Insurance | 15% |
| Traveller Personal Accident Insurance | 25% |
| Golfers Insurance | 25% |
5.
| Placement Options | Option 1 | Option 2 |
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| Tenure | 1 to 12 months | 15, 18, 21, 24, 36, 48 & 60 months |
| Interest Rate | 0.1% p.a. above the prevailing PLUS Fixed Deposit interest rates for the respective tenures | 0.1% p.a. above the prevailing 15 months PLUS Fixed Deposit interest rates |
| Interest Payment Method | Credited into customer’s savings or current account maintained with the Bank upon maturity,
OR
Add to the principal upon maturity | Credited into customer’s savings or current account maintained with the Bank on a monthly basis |
Calculated Interest:
| PB Golden 50 PLUS FD | 0.255% | 3.10% p.a. |
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| Deposit Amount | 1 month Interest | 12 months interest |
| RM10,000 | RM25.47 | RM310.00 |
| RM50,000 | RM127.37 | RM1,550.00 |
| RM100,000 | RM254.73 | RM3,100.00 |
Eligible for protection by PIDM
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Go to Public Bank
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Public Bank’s Golden 50 PLUS Fixed Deposit Account is market leading among the more established banks, but only by a slim margin. Most large banks in Malaysia offer 2.90%-3.00% p.a for a 1-month tenure. Senior citizens (50 yrs or older) who are willing to deposit RM30,000 of their money can enjoy leading market rates, along with a slew of other benefits, which in our opinon, make it a very attractive package.
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The Best 3-Month FD rates - up to 4.95% p.a
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Interest Rate: 5.00% p.a
Minimum Deposit: RM5,000
Maximum Deposit: RM50,000 (RM100,000 if you open a HSBC Premier account)
Minimum Age Requirement: 18 yrs
Tenure: 3-months
TnC’s:1. Fresh funds only (ie. not from existing HSBC Accounts
2. Promotion ends: 30th September 2012 for Maluri, City Centre and Kota Damansara branches, 31st October 2012 for Kulai and Cyberjaya branches
Calculated Interest:
If you had RM5,500: (RM5,000 in FD and RM500 in Current Account):
| OCBC 5.00% p.a. 3-month FD Promotion | 3-month Term Deposit-i | HSBC Amanah Advance-i | Total |
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| Deposit Amount | RM5,000.00 | RM500.00 | RM5,500.00 |
| Interest Rate (p.a) | 5.00% | 0.06% | 4.54% |
| Interest Earned | RM61.36 | RM0.07 | RM61.44 |
If you had RM50,500: (RM50,000 in FD and RM500 in Current Account):
| OCBC 5.00% p.a. 3-month FD Promotion | 3-month Term Deposit-i | HSBC Amanah Advance-i | Total |
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| Deposit Amount | RM50,000.00 | RM500.00 | RM50,500.00 |
| Interest Rate (p.a) | 5.00% | 0.06% | 4.95% |
| Interest Earned | RM613.61 | RM0.07 | RM613.69 |
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HSBC are having an opening promotion for 5 of their new branches, where accountholders can earn market leading FD interest rates of 5.00% p.a. by applying for a HSBC Premier (need RM200,000 handy!) or a HSBC Amanah Advance account (normally need RM20,000 deposit into this current account or face a RM10 monthly charge, but this is waived for 12 month upon account opening at these new branches). We would say make use of the HSBC Amanah Advance Account-i monthly service waiver and open that account with RM500 (the interest rate here is a shameful 0.06% p.a. so put the minimum RM500), and put in whatever else you have (you need more than RM5,000 and can put in a maximum of RM50,000) into the 3-month Term Deposit-i at 5.00% p.a.
We’re guessing its part of the promotion, but we don’t like that you are limited to only these 5 branches, especially in the digital age of online applications! Still, if you can get yourself to those branches before the end of the promotion, why not?
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Interest Rate: 4.16%-4.25% p.a
Minimum Deposit: RM10,000 and at least 20% (RM2,000) into an OCBC Smart Savers account
Minimum Age Requirement: 18 yrs
Tenure: 3-months
TnC:- You need a minimum of RM10,000 in new funds
- A minimum of 20% of the placement in an OCBC Smart Savers account is required.
Calculated Interest:
| OCBC Savings Combo 3-months | 1.024% | 4.16% p.a. |
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| Deposit Amount | 3 month Interest | 12 months interest |
| RM10,000 | RM102.42 | RM416.00 |
| RM50,000 | RM512.08 | RM2,080.00 |
| RM100,000 | RM1,024.16 | RM4,160.00 |
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OCBC have come up with their new 3-month FD rate promotion, offering a headline grabbing rate of 4.50% p.a till 30th September 2012. Do you really get 4.50% p.a.? By combining the 100% FD and 20% Smartsavers you can get a market leading effective 4.16% p.a., and up to 4.25% p.a. For a detailed description and calculations, please take a look at our full product review at OCBC Savings Combo 4.50% p.a. 3-month FD Review (ends 30 September 2012)
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OCBC Mighty Savers Weekend 3-month Fixed Deposit Promotion – 3-month top rate of 4.00% p.aDrawback: need to purchase one of the selected OCBC products to be eligible, minimum deposit of RM10,000, FD Promotion is limited to one FD placement per customer per Mighty SaversTM weekend.
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Interest Rate: 4.00% p.a
Minimum Deposit: RM10,000
Max Deposit: RM50,000
Minimum Age Requirement: 18 yrs
Tenure: 3-months
TnC:1. Eligible customers will get to enjoy the following promotional 3-month Fixed Deposit (“FD”) interest rates should they open/purchase any of these OCBC Products on the same day during the Mighty Savers TM weekend
- Savings Account* (includes Mighty Savers TM Account but excludes Builder, Builder Express and Multiplier Savings Account)
- Current Account
- Unit Trust products (minimum investment of RM5000) or other investment products such as Dual Currency Investments or structured investments.
2.Limited to one FD placement per customer per Mighty SaversTM weekend.
- No interest will be paid before completion of the first 3-months of FD placement.
Calculated Interest:
| OCBC Mighty Savers 3-months | 0.985% | 4.00% p.a. |
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| Deposit Amount | 3 month Interest | 12 months interest |
| RM10,000 | RM98.53 | RM400.00 |
| RM50,000 | RM492.67 | RM2,000.00 |
| RM100,000 | RM985.34 | RM4,000.00 |
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OCBC’s Mighty Savers Weekend Promotion offers an astounding rate of 4.00% p.a, coming in second only to it’s sister product, OCBC Savings Combo. However, in order to be eligible, customers are required to open/purchase one of several products offered by OCBC. For those who view this as a waste of money, it isn’t necessarily a bad thing, as the cost of opening a Mighty Saver’s account for your child is RM 200 with a minimum remaining balance of RM 20. Other avenues are also available should you be interested in purchasing another product.
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Interest Rate: 3.7% p.a
Minimum Deposit: RM10,000 in FD, RM1000 into a Savings Account
Max Deposit: RM10,000 in FD
Minimum Age Requirement: 18 yrs
Tenure: 3-months
TnC:
1.Customers must nominate that the interest from the FD be credited into the nominated Savings Account, otherwise you will get disqualified.
2. Only new funds are accepted.
3. The incremental average daily balance (ADB) for the Savings Account must be RM1,000 over the promotion month period.
4. Customers must keep the savings account open till 31 January 2013.
5. By taking up this product, you automatically get signed up for an entry into a Contest to win 10 Hyundai cars.
Calculated Interest:
| HLB 1% p.a 3-months | 0.912% | 3.70% p.a. |
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| Deposit Amount | 3 month Interest | 12 months interest |
| RM10,000 | RM91.24 | RM370.00 |
| RM50,000 | RM456.22 | RM1,850.00 |
| RM100,000 | RM912.44 | RM3,700.00 |
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Hong Leong Bank’s extra 1% p.a promotion may state that it offers a rate of 3.95% p.a, however, given that you have to put RM1,000 out of your RM11,000 into a Savings Account(take the highest interest possible, Hong Leong Basic Savings account at 0.25% p.a., so you get 1.25% p.a. with the bonus interest), assuming you put the money in for 3 months (the promotion is actually slightly longer at 4 months long, but we would suggest to take the money out after the first 3 months are over) your effective rate is more like 3.70% p.a. over the 3 month period, still a top rate, as most 3-month rates are within the 3.10%-3.20% p.a. range, so it is worth considering moving your extra cash here if you want a top 3 month rate.
| Hong Leong Bank FD Promotion | Basic Savings Account for 3 months | 3-month FD | Total |
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| Placement amount | RM1,000 | RM10,000 | RM11,000 |
| Interest rate (p.a.) | 1.25% | 3.95% | 3.70% |
| Interest earned after 3 months | RM3.11 | RM97.32 | RM100.43 |
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The Best 6-Month FD rates – up to 3.85% p.a.
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Interest Rate: 3.85% p.a
Minimum Deposit: RM20,000
Minimum Age Requirement: 18 yrs
Tenure: 6-months
Features: Existing Gold Account-i customers with a minimum of 10gm of gold in their account, are eligible to enjoy Offer 1 with a higher rate of 4.00% p.a.
Calculated Interest:
| KFH 6-months | 1.907% | 3.85% p.a. |
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| Deposit Amount | 6 month Interest | 12 months interest |
| RM10,000 | RM190.68 | RM385.00 |
| RM50,000 | RM953.41 | RM1,925.00 |
| RM100,000 | RM1,906.82 | RM3,850.00 |
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Kuwait Finance House Gold Discovery 3′s promotion offers a chart topping rate of 3.85% p.a, leaving other major competing banks in it’s wake. It is understandable that the term “commodity” in this product might raise some eyebrows. However, it is important to note that we are investing our money into the product offered by the bank, and not the commodity it is investing in, making the product behave exactly like a Fixed Deposit.
As such, the overall performance of the bank’s own internal investments is of little concern to us as the bank is compelled to pay interest to this account regardless. On top of that, this product is also eligible for protection by PIDM.
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Interest Rate: 3.75% p.a
Minimum Deposit: RM 500
Minimum Age Requirement: 18 yrs
Tenure: 6-months
Features: Bank Rakyat Qiradh GIA
1. Investors can take profits of each month for a period of 6 months with an investment of RM20, 000.00 and above.
2. Automatic renewal of certificates.
3. Investment certificates can be used as collateral for such financing: Secured Investment Certificate-i Al-Mudharabah, Education Financing-i Al-Falah and Contract Financing-i Tijari.
Bank Rakyat Qiradh GIA (Mubeen)
1. Profits will be given upfront to the depositors on a monthly basis as declared by the Bank beforehand.
Calculated Interest:
| Bank Rakyat 6-months | 1.858% | 3.75% p.a. |
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| Deposit Amount | 6 month Interest | 12 months interest |
| RM10,000 | RM185.77 | RM375.00 |
| RM50,000 | RM928.87 | RM1,875.00 |
| RM100,000 | RM1,857.74 | RM3,750.00 |
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Bank Rakyat’s Qiradh General Investment Account-i is the market leader here with 3.75% p.a. Our main concern is with their PIDM status. As Bank Rakyat is a Cooperative Bank, they are not covered under this explicit guarantee, and you will only get implicit protection from the Ministry of Finance under the Development of Financial Institution Act (DAFIA).
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Interest Rate: 3.10% p.a for the first 5 months, 4.88% p.a for the 6th month (effectively 3.39% p.a, 3.40% p.a. for Preferred customers)
Minimum Deposit: RM5,000
Minimum Age Requirement: 18 yrs
Tenure: 6-months
Features:1. Open to both CIMB Retail Customers and CIMB Preferred Customers.
2. Multiple placements with a minimum of RM5,000 are allowed.
3. Hassle-free crediting of interest into your choice of CIMB Bank Current or Savings Account.
4. CIMB Preferred Customers can enjoy a higher rate of 5.00% p.a for the 6th month with a minimum deposit of RM50,000.
Calculated Interest: Assume you have RM100,000 to save, you will earn the following:
| CIMB Step Up Fixed Deposit Promotion | First 5 months | Month 6 | Total |
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| Interest rate (p.a) | 3.10% | 4.88% | 3.39% |
| Amount of interest on RM100,000 | RM1,298 | RM407 | RM1,705 |
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Despite being miles away from the eye-catching 4.88% p.a, the effective rate of 3.39% p.a is still a market leader among major banks, only falling behind Bank Rakyat and Kuwait Finance House’s Gold Discovery Promotion (at the time of writing). Unlike their previous promotion, this one is open to both CIMB Retail and Preferred Customers. Additionally, preferred customers are treated to a higher rate of 5.00% p.a for their final month of tenure (minimum deposit amount of RM50,000), giving them an even higher effective rate of 3.40% p.a..
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Interest Rate: 3.26% p.a
Minimum Deposit: RM 500
Minimum Age Requirement: 18 yrs
Tenure: 6-months
Features:1. Flexible period of investment from 1 month to 60 months and allow you to make partial withdrawals.
2.Automatic renewal upon maturity.
3.Profit earned can be automatically credited into your Current Account and Saving Account.
Calculated Interest:
| Affin/Affin Islamic 6-months | 1.617% | 3.26% p.a. |
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| Deposit Amount | 6 month Interest | 12 months interest |
| RM10,000 | RM161.69 | RM326.00 |
| RM50,000 | RM808.46 | RM1,630.00 |
| RM100,000 | RM1,616.93 | RM3,260.00 |
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The Best 9-month FD rates – up to 3.85% p.a
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Interest Rate: 3.85% p.a
Minimum Deposit: RM 500
Minimum Age Requirement: 18 yrs
Tenure: 9-months
Features: Bank Rakyat Qiradh GIA
1. Investors can take profits of each month for a period of 6 months with an investment of RM20, 000.00 and above.
2. Automatic renewal of certificates.
3. Investment certificates can be used as collateral for such financing: Secured Investment Certificate-i Al-Mudharabah, Education Financing-i Al-Falah and Contract Financing-i Tijari.
Bank Rakyat Qiradh GIA (Mubeen)
1. Profits will be given upfront to the depositors on a monthly basis as declared by the Bank beforehand.
Calculated Interest:
| Bank Rakyat 9-months | 2.874% | 3.85% p.a. |
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| Deposit Amount | 9 month Interest | 12 months interest |
| RM10,000 | RM287.38 | RM385.00 |
| RM50,000 | RM1,436.91 | RM1,925.00 |
| RM100,000 | RM2,873.82 | RM3,850.00 |
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Once again, Bank Rakyat’s Qiradh General Investment Account-i is the market leader here with 3.75% p.a. Our main concern is with their PIDM status. As Bank Rakyat is a Cooperative Bank, they are not covered under this explicit guarantee, and you will only get implicit protection from the Ministry of Finance under the Development of Financial Institution Act (DAFIA).
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Interest Rate: 3.60% p.a
Minimum Deposit: RM10,000
Minimum Age Requirement: 18 yrs
Tenure: 9-months
Calculated Interest:
| OCBC FD Mubarah 9-months | 2.688% | 3.60% p.a. |
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| Deposit Amount | 9 month Interest | 12 months interest |
| RM10,000 | RM268.80 | RM360.00 |
| RM50,000 | RM1,344.01 | RM1,800.00 |
| RM100,000 | RM2,688.03 | RM3,600.00 |
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If you have RM10,000 to spare, you might want to consider putting your money into the OCBC Booster Deals 9-month FD. The new promotional rate bumps up the standard declared rate by a significant margin from 3.00%p.a to 3.60% p.a.
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The Best 12-Month FD rates – up to 4.01 % p.a
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Interest Rate: 4.01% p.a
Minimum Deposit: RM 500
Minimum Age Requirement: 18 yrs
Tenure: 12-months
Features: Bank Rakyat Qiradh GIA
1. Investors can take profits of each month for a period of 6 months with an investment of RM20,000.00 and above.
2. Automatic renewal of certificates.
3. Investment certificates can be used as collateral for such financing: Secured Investment Certificate-i Al-Mudharabah, Education Financing-i Al-Falah and Contract Financing-i Tijari.
Bank Rakyat Qiradh GIA (Mubeen)
1. Profits will be given upfront to the depositors on a monthly basis as declared by the Bank beforehand.
Calculated Interest:
| Bank Rakyat 12-months | 4.01% p.a. |
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| Deposit Amount | 12 months interest |
| RM10,000 | RM401.00 |
| RM50,000 | RM2,005.00 |
| RM100,000 | RM4,010.00 |
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No surprises here, Bank Rakyat’s Qiradh General Investment Account-i is the market leader with 4.01% p.a. However, once again, our main concern is with their PIDM status. As Bank Rakyat is a Cooperative Bank, they are not covered under this explicit guarantee, and you will only get implicit protection from the Ministry of Finance under the Development of Financial Institution Act (DAFIA).
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Interest Rate: 3.85% p.a
Minimum Deposit: RM20,000
Minimum Age Requirement: 18 yrs
Tenure: 12-months
Features: Existing Gold Account-i customers with a minimum of 10gm of gold in their account, are eligible to enjoy Offer 1 with a higher rate of 4.00% p.a.
Calculated Interest:
| KFH 12-months | 3.85% p.a. |
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| Deposit Amount | 12 months interest |
| RM10,000 | RM385.00 |
| RM50,000 | RM1,925.00 |
| RM100,000 | RM3,850.00 |
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Kuwait Finance House Gold Discovery 3′s promotion offers a market leading rate of 3.85% p.a, coming in second only to Bank Rakyat’s 4.01%. It is understandable that the term “commodity” in this product might raise some eyebrows. However, it is important to note that we are investing our money into the product offered by the bank, and not the commodity it is investing in, making the product behave exactly like a Fixed Deposit.
As such, the overall performance of the bank’s own internal investments is of little concern to us as the bank is compelled to pay interest to this account regardless. On top of that, this product is also eligible for protection by PIDM.
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Interest Rate: 3.80% p.a (combined with 20% in SmartSavers, get effective 3.64% p.a.)
Minimum Deposit: RM10,000
Minimum Age Requirement: 18 yrs
Tenure: 12-months
Calculated Interest:
| OCBC 12-month Deposit Deals Promotion | 3.64% p.a. |
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| Deposit Amount | 12 months interest |
| RM10,000 | RM364.00 |
| RM50,000 | RM1,820.00 |
| RM100,000 | RM3,640.00 |
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If you have RM10,000 to spare, then you may consider putting your money into the new OCBC Deposit Deals 12-month FD. The catch here is that you have to put 20% of your intended fresh funds into an OCBC Current or Savings account (at a much lower interest). We would suggest putting that 20% into an OCBC SmartSavers account earning you 3.00% p.a. Your effective rate will be [(80% x 3.80%) + (20% x 3.00%)]= 3.64% p.a.
List of OCBC branches here
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Interest Rate: 3.60% p.a
Minimum Deposit: RM 500
Minimum Age Requirement: 18 yrs
Tenure: 12-months
Features:1. Flexible period of investment from 1 month to 60 months and allow you to make partial withdrawals.
2.Automatic renewal upon maturity.
3.Profit earned can be automatically credited into your Current Account and Saving Account.
Calculated Interest:
| Affin Bank/Affin Islamic Bank 12-month General Investment Account-i | 3.60% p.a. |
|---|
| Deposit Amount | 12 months interest |
| RM10,000 | RM360.00 |
| RM50,000 | RM1,800.00 |
| RM100,000 | RM3,600.00 |
| |
|
|
Some additional points for the high flyers out there:
If you are a preferred or priority bank customer, you may receive higher rate than what’s advertised online or in branch. Furthermore, having a long standing relationship with a Bank also can give you more leverage over interest rate negotiations. Banks like to keep their existing preferred/premier customers happy and having a good history with your Relationship Manager can also give you more power in your discussions with them.
Final SaveMoney FD tips
- Although rates are published, always ask to speak to someone in the bank to negotiate the interest rate (the higher the amount saved, the more leverage you have to grab a better deal!)
- Spread your savings of up to RM 250,000 per FD account to keep it extra safe.
- Keep scouting around for the highest FD rate (or keep checking us out!).
- And finally, start saving NOW. It’s never too early to start saving money!
Beware of the Dog
Only enter into an FD if you don’t need the whole lump sum within the fixed term. Look out for FDs that charges a penalty or fine for withdrawing money out before the end of the period, not just waiving the interest. Some FDs are not auto renewable which means going into the branch is the only way to extend your saving period.
Source: http://savemoney.my/
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