Best Fixed Deposit Accounts In Malaysia

In many cases, if you choose to make a premature full or partial withdrawal any time during the first three months you lose all interests generated. ​ If you choose to make withdrawals after placement of at least three months, you will still earn interest but only at half of the interest rate you were offered. If you’re a smart saver, you’ll only open an FD when you are able to put cash aside for the entire investment period. Banks will offer tenures as short as one-month, or as long as 5 years.

Basically, a low OPR causes local banks to adjust the interest rate it will lend to consumers. This means people with existing loans will end up paying lower monthly repayments, and subsequently, new loans will follow the current rates. Naturally, fixed deposit accounts also lower their interest rates because of this. ​ Early withdrawals for fixed deposit accounts of 1 to 3 months tenure might result in you losing out on all the interest generated on your stored cash. Versa provides an alternative for those who may be hesitant about locking up your money in a fixed deposit.

And profit of RM184.66 when all 6 months are taken into account. You’re not looking at the bigger picture – you may be earning more interest, but an FD won’t be able to give you the freedom to withdraw money or make cashless payments, as you will find out soon enough. Next, multiply the EIR with your principal amount to get your total interest earnings, as seen in the second formula. It guarantees a high return, easy to manage, rewards loyalty, and is protected by government insurance. Considered a safe haven compared to other investment types, a Fixed Deposit is a popular choice for many first-time investors.

After the commodity is purchased, the next step is for you to sell it back to the bank at a higher price for profit, credited to you at a deferred basis throughout your placement period. Islamic banking in Malaysia is also covered under the Perbadanan Insuran Deposits Malaysia. However, this insurance coverage will be restricted when the new framework for deposit accounts takes effect in tandem with the phasing out of Mudharabah GIA under the Islamic Financial Services Act 2013. These investments can be challenging to understand for some, but they’re not that much different in terms of profiting on your deposits. To find out your investment’s true rate of return, you need to take note of the interest rate and your placement period. All you have to do is gather your spare cash, open an FD account, and claim your interest at maturity.

With so much money at stake, you might be worried about how safe your hard earned cash is when stored in the bank. To transfer cash from your account with Bank A into the FD will not get you the promotional rate. By giving you huge returns, hopefully you’ll be enticed enough to bring all your stray cash into one place. With that said, always read your Terms and Conditions before signing your name on the dotted line. Park your cash in the FD account and you get back your initial deposit along with interest of 3.65% per annum (p.a.) or an Effective Interest Rate of 1.82% after 6 months.

This drop is due to the reduction in the overnight policy rate set by the Central Bank of Malaysia . While some Islamic banks will still offer customers GIAs, your deposits won’t be insured any longer. Instead, you’d want to shift your attention towards principal guaranteed Islamic ‘term deposit’ accounts. Simply, there’s no standard insured amount for your bank deposits.

However, if you make a premature withdrawal from an FD after three months, you get to keep half of the interest generated. Similar to a conventional FD, your deposit will be guaranteed and insured by PIDM, while still guaranteed as Halal. Under this arrangement, you will appoint your Islamic bank as an agent for the purchase of a commodity from trader A using your investments. This means that if you want to deposit RM10,000 into the FD you’ve also got to deposit RM5,000 into a CASA bringing the total amount deposited to RM15,000. You’ll still earn the same amount in interest, but you need to deposit more money. For their 6-month FD, but you have to deposit 50% of your FD amount into a CASA as well.

To those who are not sure about Fixed Deposit, it’s a type of an investments account that allows you to invest a lump of money for a fixed time period and at a fixed rate of interest. This type of investment is quite popular because it’s known to be risk-free and has higher interest rates when compared to the regular savings account. This is because it’s calculated on a yearly basis, unlike a savings account which is calculated on a daily basis. The tenure of the fixed deposit account can also affect the interest rate – the longer the tenure, the higher the interest rate is given. Most fixed deposit accounts in Malaysia are also regulated by Perbadanan Insurans Deposit Malaysia that gives protection for your investment in the unlikely event of member bank failure.

To get maximum returns from your deposits, check the rates of all the banks before opening an FD. In a typical FD arrangement, you place a sum of money into a bank by cash or cheque, and receive in return a certificate of deposit indicating the deposited amount, the interest and the maturity date. At the specified maturity date, you then return the certificate of deposit to the bank to withdraw your deposited amount plus interest. To withdraw your money or terminate your investment, you will need to present the certificate, so do keep it safe!

We provide monthly updates on the best fixed deposit rates in Malaysia with tables showing the top 5 rates for the duration of 1, 3, 6, 9, and 12 months. Fixed deposit is known to be one of the most secure investment but with a lower return. If you like to invest your money in the fixed deposit you may choose from the list below to maximize your return.