• Fixed Deposit Rates in Malaysia

    Fixed Deposit is one of the most reliable investment tool. FDs let you invest funds for a period of time and earn you interest on a range of competitive rates. The rates of interest on an FD directly depends upon the money you invest, the term chosen, and the prevailing rates of a bank or financial institution.

    The interest rates can also vary with your age, for example, FDs offered to seniors come at a relatively higher interest rate than a regular FD. Before you invest in a fixed deposit, you should find the perfect plan that lets you invest funds of your choice at the highest rate of interest available.

    Top Banks FD Interest Rates in Malaysia 2018

    The following tables consists of the banks offering FD in Malaysia:

    FD based on conventional banking principle (Updated on 21 Aug 2018)

    Bank/Financial Institution Name Minimum Tenure Maximum Tenure Minimum Interest Rate Maximum Interest Rate Minimum Deposit Amount
    Affin Bank 1 month 60 months 3.00% p.a. 4.00% p.a. RM500
    HSBC Bank 1 month 60 months 2.90% p.a. 4.15% p.a. RM5,000 (1* Month)
    Bank Simpanan Nasional 1 month 60 months 3.20% p.a. 3.50% p.a. RM500
    AmBank 1 month 60 months 3.15% p.a. 3.45% p.a. RM500
    CIMB 1 month 60 months 3.20% p.a. 3.65% p.a. RM1,000
    Mach by Hong Leong 1 month 24 months 3.00% p.a. 3.20% p.a. RM1,000
    Maybank 1 month 60 months 3.15% p.a. 3.60% p.a. RM1,000
    MBSB 1 month 60 months 3.10% p.a. 4.10% p.a. RM1,000
    Alliance Bank 1 month 60 months 3.20% p.a. 3.45% p.a. RM500
    Public Bank 1 month 60 months 3.20% p.a. 3.35% p.a. RM1,000
    Bank of China 1 month 60 months 3.15% p.a. 3.45% p.a. RM1,000
    OCBC 1 month 60 months 2.90% p.a. 3.35% p.a. RM1,000
    Hong Leong Bank 1 month 60 months 3.00% p.a. 3.10% p.a. RM500
    RHB 1 month 60 months 3.20% p.a. Negotiable RM500
    Standard Chartered 1 month 60 months 2.95% p.a. 3.25% p.a. RM1,000
    UOB 1 month 60 months 2.95% p.a. 3.25% p.a. RM500
    Citibank 1 month 60 months 2.90% p.a. 2.95% p.a. RM1,000

    FD based on Islamic banking principle (Updated on 21 Aug 2018)

    Bank/Financial Institution Name Minimum Tenure Maximum Tenure Minimum Profit Rate Maximum Profit Rate Minimum Deposit Amount
    Affin Islamic 1 month 60 months 3.25% p.a. 4.05% p.a. RM500
    AmIslamic 1 month 60 months 3.15% p.a. 3.45% p.a. RM500
    Bank Islam 1 month 60 months 3.30% p.a. 4.10% p.a. RM500
    Bank Muamalat 1 month 60 months 3.30% p.a. 4.20% p.a. RM1,000
    BSN Islamic 1 month 60 months 3.20% p.a. 3.50% p.a. RM500
    Bank Rakyat 1 month 60 months and more 3.40% p.a. 4.45% p.a. RM500
    CIMB Islamic 1 month 60 months 3.20% p.a. 3.65% p.a. RM1,000
    Hong Leong Islamic 1 month 60 months 3.00% p.a. 3.10% p.a. RM500
    HSBC Amanah 1 month 60 months 2.90% p.a. 4.15% p.a. RM1,000
    Maybank Islamic 1 month 60 months 3.15% p.a. 3.60% p.a. RM1,000
    MBSB 1 month 60 months 3.10% p.a. 4.10% p.a. RM500
    OCBC Al-Amin 1 month 60 months 2.90% p.a. 3.35% p.a. RM1,000
    Public Islamic Bank 1 month 60 months 3.20% p.a. 3.35% p.a. RM1,000
    UOB 1 month 60 months 2.95% p.a. 3.25% p.a. RM500

    Fixed Deposit Rates for Senior Citizen in 2018

    The table below contains the banks offering FD for Senior Citizens: (Updated on 21 Aug 2018)

    Bank/Financial Institution Name Minimum Tenure Maximum Tenure Minimum Interest Rate Maximum Interest Rate Minimum Deposit Amount
    MBSB 1 month 60 months 3.20% p.a. 4.20% p.a. RM1,000
    BSN 12 months 60 months 3.55% p.a. 3.60% p.a. RM5,000
    BSN Islamic 12 months 60 months 3.55% p.a. 3.60% p.a. RM5,000
    AmBank 6 months 60 months 3.30% p.a. 3.50% p.a. RM5,000
    AmIslamic 6 months 60 months 3.30% p.a. 3.50% p.a. RM5,000
    Public Bank 1 month 60 months 3.30% p.a. 3.45% p.a. RM10,000
    RHB 12 months 60 months 3.35% p.a. Negotiable RM10,000
    Hong Leong Bank 12 months 60 months 3.25% p.a. 3.25% p.a. RM10,000

    Fixed Deposit Rates for Juniors/children in 2018

    The list of banks/financial institutions offering Junior FD Account is given in the table below: (Updated on 21 Aug 2018)

    Bank/Financial Institution Name Minimum Tenure Maximum Tenure Minimum Interest/Profit Rate Maximum Interest Rate Minimum Deposit Amount
    MBSB Islamic 1 month 60 months 3.10% p.a. 4.10% p.a. RM500
    Maybank Islamic 1 month 60 months 3.15% p.a. 3.60% p.a. RM1,000
    Hong Leong Bank 12 months 60 months 3.25% p.a. 3.25% p.a. RM1,000
    Hong Leong Islamic 3 months 60 months 3.20% p.a. 3.25% p.a. RM1,000

    FD Promotional Rate 2018

    The following are the FD Promotional Rates provided by banks in 2018:

    • Earn from 4.25% p.a. up to 4.38% p.a. when you place an FD with a minimum sum of RM10,000 in RHB Fixed Deposit or RHB Commodity Murabahah Deposit-i account. The campaign is available until 30 June 2018.
    • Place RM5,000 or more in an eFixed Deposit account and earn a promotional rate of 3.40% p.a.-3.65% p.a. The deposit account must be opened via Public Bank’s Online Banking channel. The promotion is valid until 30 June 2018.
    • Earn upfront interest when you place a sum of RM10,000 or more in the Kuwait Finance House ICM Deposit-i account. The deposit tenure can be 6, 12 or 15 months. You can get the benefits of the campaign if you open the FD account by 30 April 2018.
    • Place a minimum of RM10,000 in your FD/FD-i account for 6 or 12 months to earn interest of 4.20%p.a. and 4.35% p.a. respectively. The promotion is valid until 30 April 2018.

    Banks offering Foreign Currency FD in 2018 (Updated on 21 Aug 2018)

    Bank/Institution Name Minimum Tenure Maximum Tenure Minimum Deposit Interest rates for currencies
    AUD EUR GBP HKD SGD USD
    Alliance Bank 7 days 12 months 5,000 units Up to 2.15% p.a. Up to 0.00% p.a. Up to 0.50% p.a. - Up to 1.25% p.a. Up to 1.95% p.a.
    AmBank 7 days 12 months Equivalent to RM10,000 Up to 1.60% p.a. - Up to 0.60% p.a. Up to 0.45% p.a. Up to 1.00% p.a. Up to 1.00% p.a.
    CIMB 7 days 12 months Equivalent to RM10,000 Up to 2.29% p.a. Up to 0.00% p.a. Up to 0.58% p.a. Up to 0.50% p.a. Up to 1.25% p.a. Up to 1.82% p.a.
    CIMB Islamic 7 days 12 months Equivalent to RM10,000 Up to 2.29% p.a. Up to 0.00% p.a. Up to 0.58% p.a. - - Up to 1.82% p.a.
    Hong Leong Bank 1 day 12 months 1,000 units (10,000 for HKD) Up to 2.15% p.a. Up to 0.00% p.a. Up to 0.65% p.a. Up to 0.50% p.a. Up to 1.45% p.a. Up to 1.30% p.a.
    OCBC 7 days 12 months 10,000 units (5,000 for GBP) Up to 1.335% p.a. Up to 0.00% p.a. Up to 0.31% p.a. - Up to 1.10% p.a. Up to 2.30% p.a.
    Maybank 1 day 12 months 3,000 units Up to 2.25% p.a. Up to 0.00% p.a. Up to 0.85% p.a. Up to 1.40% p.a. Up to 1.40% p.a. Up to 2.30% p.a.
    Public Bank 1 month 12 months Equivalent to RM10,000 Up to 2.30% p.a. Up to 0.00% p.a. Up to 0.85% p.a. Up to 1.40% p.a. Up to 1.40% p.a. Up to 2.15% p.a.
    UOB 1 month 12 months Varies from currency to currency Up to 1.40% p.a. Up to 0.00% p.a. Up to 0.50% p.a. Up to 1.00% p.a. Up to 0.95% p.a. Up to 1.80% p.a.
    Bank of China 1 month 12 months As per bank’s discretion - - - - - Up to 1.05% p.a.

    How Fixed Deposits work

    Illustration 1: Full withdrawal at maturity

    The calculation for the interest earned is done using the formula below:

    Interest earned (I) = [A x {1 + (R/100)}T] - A

    Where A = Deposit Amount; R = Interest Rate (in p.a.); T = FD Tenure in years.

    Deposit Amount Term Interest Rate* Maturity Amount Interest Earned
    RM10,000 24 months 3.00% p.a. RM10,609 RM609

    Illustration 2: Premature withdrawal

    Certain banks allow for premature withdrawals. based on when the withdrawal is made, you would either stand to gain some interest or receive no interest at all.

    if you were to withdraw your deposit amount prior to completion of 3 months, then no interest is given. Withdrawals made after the completion of 3 months but before the FD attains maturity will give you an interest rate of 50% of the actual rate for the completed months only.

    Let’s take a look at the following example:

    Deposit amount: RM10,000

    Interest rate: 3.00% p.a.

    Original tenure: 24 months

    Withdrawal made: 5 months before the maturity date;

    Net interest earned = 50% of the original interest for the completed months only.

    Deposit Amount Term Interest Rate* Original interest Penalty rate Net interest earned
    RM10,000 24 months 3.00% p.a. RM609 50% of the predetermined interest rate offered for completed months only RM230

    Types of FD Interest Rates

    Step-up Fixed Deposit

    The interest rates in a step-up fixed deposit increase with the tenure of FD.

    Let’s look at the following illustration of a 6-month step-up fixed deposit with initial deposit of RM10,000:

    Initial Deposit Amount: RM10,000 Interest Rate* (Month 1-2) Interest Rate* (Month 3-5) Interest Rate* (Month 6) Effective Interest Rate
      3.00% p.a. 3.10% p.a. 4.10% p.a. 3.32% p.a.
    Interest Earned RM50 RM79.825 RM36.28 RM166.10
    Step-Up-Fixed Deposit Rate

    Fixed Deposit with CASA Bundling

    The fixed deposits with CASA bundling require you to deposit a percentage of your deposit amount into a savings or current account that will be linked to your FD account.

    The following illustration describes the working mechanism of a fixed deposit with CASA (Current and savings account) bundling for a 12-month term and initial deposit of RM10,000. For illustration purpose, the percentage of amount you need to put in CASA is 50% of your deposit amount:

      Initial amount in fixed deposit Initial amount in CASA Total
    Deposit amount RM10,000 RM5,000 RM15,000
    Interest rate* 4.30% p.a. 0.5% p.a. 3.03% p.a.
    Interest earned RM430 RM25 RM455

    For the illustration above, the total amount of interest earned on the total deposit amount, i.e. RM15,000 comes out to RM455. The effective rate of interest thus drops and comes out to be 3.03% p.a.

    *Interest rates mentioned in the tables below are for illustration purpose only. The original interest may vary from bank to bank.

    2018 Fixed Deposit Promotion

    News About Fixed Deposits in Malaysia

    • Malaysian Banks Expect Lower Earnings in the Second Half of the Financial Year

      Malaysian banks foresee lower earnings due to a dip in their non-interest income and net-interest margins (NIMs). NIM is the difference between the banks' interest income and the interest paid to depositors.

      According to analysts, non-interest income could be impacted due to an increase in Malaysian government securities yields. This, in turn, would reduce trading income and bank investment.

      As fixed deposits are predicted to be repriced upwards in the second and third quarter of the financial year, analysts are expecting competition for deposits which could further compress NIMs. Three-month fixed deposit spread and the average lending rate are both responsible to determine the banking sector's NIM.

      Kelvin Ong, an analyst from AmInvestment Bank, is of the opinion that the issuance of capital raising under the equity market would remain slow. He said increasing yields could affect the banks' trading income and investment, which will lead to a dip in trading gains.

      Ong feels that NIM will remain compressed as the central bank is maintaining its overnight policy rate (OPR). Also, the NIM will decrease in the second quarter of the financial year as there was an increase in the OPR by 25 basis points in January 2018. The NIM could expand to just 2 basis points for this financial year.

      BBazaar Malaysia

      16 July 2018

    • Year 2018 Looks Promising For the Bank Loans Sector

      In March 2018 year-on-year stats, Malaysian banking industry’s growth was recorded as 4.4%. However, in February 2018, the y-o-y growth was noted as 4.5%. Even though the growth is decelerated compared to last month, the figures seem to be good to reach the anticipated rate of 5% in 2018, reports suggest.

      In 2018, the upsurge in the loans’ sector has been reportedly contributed by the growth in household loans. In March 2018, the loan applications in the industry improved by 0.02% y-o-y compared to -5.8% y-o-y in February. Furthermore, non-household applications saw an increase of 11.4% y-o-y in March compared to -7.2% y-o-y in February.

      Meanwhile the banking sector’s loan-to-deposit ratio also increased to 88.5% due to a better deposit growth. Individual deposits also improved in March 2018 with a growth reaching to 3.3% y-o-y as compared to 3.2% y-o-y (February 2018).

      Overall, the scenario looks promising for the targeted growth in the loans sector for year 2018.

      BBazaar Malaysia

      28 May 2018

    • Banks Set To Get More Traction In 2018

      Backed by a strong economic growth, banks will continue to flourish in 2018, reports suggest. Analyst of MIDF Amanah Investment Bank Bhd, Imran Yassin Yusof said that banks will continue to do well because of expected loan expansion.

      Other than the loan sector, deposits are also expected to gain major boost this year. As of now, current account and savings account (CASA) rates are quite low compared to fixed deposits. However, CASA rates are expected to see a significant rise backed by businesses and SMEs. According to reports, deposits grew from 4.1% in December to 4.4% in January. Personal deposits lowered to 2.9%, whereas deposits from businesses grew to 9.4%. Cheap deposits are also expected to grow under Budget 2018’s new ruling, which states that salary for non-Malaysian workers are to be paid through Malaysian or local banks. It will also help boost ancillary income for banks.

      Strong gross domestic product (GDP) growth will contribute to the overall loan expansion, which in turn will have a positive impact on banks, Yusof said. Last year Maybank, Public Bank Bhd, and CIMB group, which are considered three of the biggest banking groups by market capitalization, recorded impressive numbers across the board.

      According to reports, in 2018 the GDP is predicted to grow somewhere between 5.1% and 5.3%. Also, this year, supported by a stronger economic growth and trade, business-related loans are set to improve. However, housing loan growth might slow down though properties continued to be sold in the market.

      BBazaar Malaysia

      08 March 2018

    • Banking Industry Records a Growth in Fixed Deposits

      Banking industry has come out with statistics revealing its growth rate across the financial products. The banking sector has seen a growth in fixed deposits (FD) for the third consecutive month contributing a 4.5% year-on-year (y-o-y).

      On the other hand, the loan rates have increased from 4.1% y-o-y in December 2017 to 4.2% y-o-y in January 2018. Household loan growth has been steady while non-household loans have not been doing well comparatively. The household loan growth rose from 5.1% y-o-y in December 2017 to 5.3% y-o-y in January 2018. But, the non-household loan growth has come down to 2.7% y-o-y in January 2018 from 2.8% y-o-y in December 2017. The reason for the drop in the growth is due to the reduction in the working capital loans to 0.8% year-on-year.

      The other commendable statistics are:

      • The rate of industry deposits grew from 4.1% y-o-y in December 2017 to 4.4% y-o-y in January 2018. Business enterprise deposits act as the major contribution for this growth rate.
      • Due to a raise in the overnight policy rate, the weighted average lending rate and base rate have increased to 5.27% and 3.76%. This has led to an increase in base lending rate from 6.68% to 6.74%.
      • Industry loan-to-deposit ratio has maintained stability at 89.6%.
      • The gross impaired ratio has also been stable at 1.5%.

      BBazaar Malaysia

      08 March 2018

    • Consumers to benefit on interest rates as inflation eases in Malaysia

      Fixed deposits in banks will earn better real interest rates as the inflation in the country seems to be eased up. The Consumer Price Index (CPI) has come down to 2.7% in January this year, which is the lowest since December 2016. In 2017, the inflation rate stayed marginally above 3% throughout the year with an average of approximately 3.9%.

      Furthermore, the recent hike in the overnight policy rate (OPR) to 3.25%, is earning better real interest rate to the customers and eventually it is also helping in relaxing the effect of inflation.

      Now that the CPI is lower than the predicted market estimate of 2.8%, consumers are hoping to be benefited by improved real interest rates on their fixed deposits.

      BBazaar Malaysia

      01 March 2018

    • OPR Hike Won’t Be Hurting Malaysians

      The recent 25 basis point hike in overnight policy rate (OPR) won’t have an adverse effect on Malaysians, reports suggest. Malaysian banks are rolling out promotional offers and increasing their fixed deposit rates to maintain stability in the financial sector.

      In the wake of Bank Negara Malaysia’s announcement of increasing 25bp in OPR, many domestic and foreign banks, including RHB Bank, CIMB Bank, Alliance Bank, Maybank, OCBC, and Hong Leong Bank, have reportedly increased their lending and deposit rates.

      According to sources, Affin Bank Fixed Deposit is offering the highest interest rate at 4.05% p.a., whereas Citibank Time Deposit has the lowest interest rate to offer, standing at 2.95% p.a. As a part of their promotional offers, some banks have even increased their FD rate from 4.3% to 5.18% p.a.

      Other local banks like RHB, CIMB, Maybank, AmBank, Public Bank, and Alliance Bank have capped their interest rates at 3.35% p.a. for a 12-month tenure.

      Research analysts have predicted that depositors will benefit this year in spite of the 25bp hike. The analysts have also predicted the moderation of inflation rate this year.

      BBazaar Malaysia

      22 February 2018

    • Fixed Deposits Will Now Fetch Higher Returns

      According to the latest amendment made by Bank Negara Malaysia, the Malaysian banks have been revising the floating interest rates. There has been a rise in Overnight Policy Rate (OPR) up to 25 basis points. This raise is going get a surplus payback to Fixed Deposit account holders.

      The central bank has analysed that the price of crude oil has an effect on the inflation. Maybank Investment Bank Research has found that Malaysia’s headline inflation rate was +3.7% while the core inflation rate was +2.4% in 2017.

      It is expected that the headline inflation rate will moderate in 2018. The Economic Team at Maybank foresees that the increase in FD returns is likely to improve the headline inflation rate from +2.5% to 3% in 2018.

      BBazaar Malaysia

      30 December 2017

    • No Big Bang Reforms Expected in Malaysian Banking sector in 2018

      Analysts do not predict any massive changes in the Malaysian Banking sector in the coming year, though the sector witnessed huge profits in the third-quarter.

      It is expected that the Net Interest Margin (NIM) will be under pressure from a couple of factors such as the imminent Basel III Net Stable Funding Ratio (NSFR) requirement, the several provisions that will arise from MFRS9 accounting standard implementation, loan growth, as well as the advanced cost-to-income ratio.

      As the pressure to hold more funds under Basel III looms larger, industry experts predict tough competition between Malaysian banks to offer higher fixed deposit rates to their customers, especially those deposits with a long-term tenure as they are considered stable under the NSFR requirement.

      BBazaar Malaysia

      20 December 2017

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