Comments on: Malaysia Bank Fixed Deposit Interest Rate

By: Casey

Casey — Fri, 03 Sep 2010 17:55:54 +0000

Hi lini,
Just FYI & sharing from my experience at other banks than PBB, for normal/conventional 12 months placement in Fixed Deposit, withdrawal before maturity date — if you’ve placed a minimum(must at least)of 3 months, they’ll paid you half of the promised interest (Eg. PBB current FD-12mths-2.85% p.a., so they’ll pay about 1.425%).
It’s better to check up with the bank.

By: lini

lini — Wed, 01 Sep 2010 14:49:39 +0000

hi, i put rm 80 k in FD in public bank for 12 months but i withdraw te money 20 days before maturity. How much interest i hv to get for that?

By: Casey

Casey — Tue, 31 Aug 2010 13:51:14 +0000

Thanks for your sharing, it helps a lot to clear my doubts. =)

By: AhYap

AhYap — Mon, 30 Aug 2010 09:34:22 +0000

Unit trust IS NOT a tool to hedge against inflation because it will go up and down, up and down. Unit Trust are a basket of stocks. Since stocks are not a tool to hedge against inflation, so how can unit trust be? They are simply “investment”. Good investment make money, bad investment suck your money. There is no guarantee. The only thing that can hedge against inflation is GOLD. But unfortunately, gold is not an investment, it merely maintain your buying power, it won’t make you richer or poorer, a good investment will make you richer (bad investment make your poorer). Stock price will rise up and down for many reason (depending on which school you are in) but CERTAINLY will not increase just because there are more inflation!!! But one thing is CERTAIN is that the unit trust seller will make commission selling unit trust to you.

There are always many frogs lying under the rocks. The FD rate you see can only be obtained if you know what is the frog. The frog is that you need to invest in their Unit Trust before you can put the FD (that’s AmBank InterestPlus). There is another one call MegaFD, that one you need to buy life insurance before you can invest in that FD. They are not conventional FD. Conventional FD rate won’t differ too much between banks, mostly 0.1%!!! Yes, 0.1%!!! When you see something like 5%, that means there are hidden frogs under the rock. The same apply to Hong Leong 5% FD and the Standard Chartered FD, what is the frog? Go ask and find out yourself. There are many funny “cute” frogs depending on how creative the marketing team of the bank is.

By: Casey

Casey — Sun, 29 Aug 2010 13:17:01 +0000

Hi Yap, I’ve got some advices from mutual fund agents, regarding unit trust. Is it true that unit trust is a tool to hedge against inflation? If it’s true, how does it work?
As per my understanding, the unit price for unit trust fund will rise because of inflation, and that’s how the theory works(unavoidable, there must be some fluctuation over the period of time but inflation will cause the price per unit to be increased). Also, for long-term investment, it will reduce the risk.
What’s your opinion?

By: Casey

Casey — Sun, 29 Aug 2010 13:01:33 +0000

Hi Yap,
I’ve cross checked the FD among several banks and AmBank is providing higher interest than the others. May I know why is this so? Does it indicate something?

Also, regarding Ambank’s product as below, I’m confusing why is the Rates p.a for 1 month Tenure is higher than 3 months & so forth. It shouldn’t be the interest rates in return, is it? Can you pls explain in details how can i get the return by deposit my money into InterestPlus?
InterestPlus Fixed Deposit Rates
Effective Date: 21 June 2010
Tenure Rates Per Annum
1 month 33.73%
3 months 12.91%
6 months 7.81%
9 months 6.09%
12 months 5.61%

Thank you in advance.

By: thomas

thomas — Thu, 19 Aug 2010 13:22:02 +0000

@ah yap
Thank’s for your swift reponse.The reason,for me to conisder opening FD in account,I was assuming it had higher interest rate,when it is compare to sg.
I guess I didn’t consider the following factor’s conversion rates and future fluctations.

I am still at loss,what to do with it. Thank’s anyway

By: AhYap

AhYap — Thu, 19 Aug 2010 11:42:56 +0000

@Thomas, if you are a Singaporean, what is the reason you want to open FD account in Malaysian? If you deposit in SGD, the interest won’t be better in Singapore. If you deposit in Ringgit, you need to suffer conversion loses and subject to future forex fluctuation. I am not sure about the tax and best guess is no tax. The only tax is 5% withhold by the bank if amount of deposit over RM100k but which is currently waived for the year. I am not familiar with other capital safe investment. You can negotiate very slightly better rate with banks BUT the more doesn’t mean the better, some banks like maybank will actually offer you a lower rate if you have FD over 1 million, say 2.85% for your first million and maybe just 2.3% for your 2nd million. You you may need to put it in several banks. And last, if you have RM2 million, you should spend more time on how to manage your money! And Islamic interest can be higher or lower in short term but in long term, it will be the same as fixed rate investment so it really make no significant differences.

By: Thomas

Thomas — Wed, 18 Aug 2010 22:18:13 +0000

Mr ahyap,

I have left out one question,i was told that Islamic banking products’s yield a high rate of return’s.could you care to recomend some or atleast explain in simple term’s of how the interest or return’s are compounded.

Thank’s again

By: Thomas

Thomas — Wed, 18 Aug 2010 22:10:44 +0000

I was googling for best malaysian bank fixed deposit rates and found your web-site.I find this web-site very much in lay-man terns,in other word’s easier to understand.
i am singaporeon,looking to open a fixed deposit account in a malaysian bank.
The investment amount,which i have in mind is more than two million ringgat.
1)As a foreigner,am I subjected any form of tax?
2)I am willing to consider other option’s,if it is safe (just as fixed desposit rates) meaning I would not lose my capital.care to recommed some?
3)For the amount of 2 million rinngat,which bank’s offer the best monthly fixed deposit rates?
4) If you are investing a large amount of money in any bank in fixed deposit account, can the interest rate be negioated with the bank?

Thank’s in advance.