• 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 12-Feb-2018)

    Bank/Financial Institution Name Minimum Tenure Maximum Tenure Minimum Interest Rate Maximum Interest Rate Minimum Deposit Amount
    Affin Bank 1 month 60 months 3.25% p.a. 4.05% p.a. RM500
    HSBC Bank 1 month 60 months 2.85% p.a. 4.15% p.a. RM1,000
    Bank Simpanan Nasional 1 month 60 months 3.05% 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 2.95% p.a. 4.20% p.a. RM1,000
    Mach by Hong Leong 1 month 24 months 3.00% p.a. 3.30% 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 3.35% p.a. 3.35% p.a. RM500
    Public Bank 1 month 60 months 3.15% p.a. 3.45% p.a. RM1,000
    Bank of China 1 month 60 months 2.90% p.a. 3.20% 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 3.05% p.a. 3.15% p.a. RM500
    RHB 1 month 60 months 3.20% p.a. Negotiable RM500
    Standard Chartered 1 month 60 months 2.90% 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 12-Feb-2018)

    Bank/Financial Institution Name Minimum Tenure Maximum Tenure Minimum Profit Rate Maximum Profit Rate Minimum Deposit Amount
    Affin Islamic 1 month 60 months 3.16% 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 3.10% p.a. 4.00% p.a. RM1,000
    BSN Islamic 1 month 60 months 3.05% p.a. 3.50% p.a. RM500
    Bank Rakyat 1 month 60 months and more 3.30% p.a. 4.30% p.a. RM500
    CIMB Islamic 1 month 60 months 2.95% p.a. 3.40% p.a. RM1,000
    Hong Leong Islamic 1 month 60 months 3.05% p.a. 3.60% p.a. RM500
    HSBC Amanah 1 month 60 months 2.85% p.a. 4.15% p.a. RM1,000
    Maybank Islamic 1 month 60 months 3.05% p.a. 3.15% 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 3.15% 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 (Updated on 12-Feb-2018)

    The table below contains the banks offering FD for senior citizens:

    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 3.05% p.a. 3.40% 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 3.25% 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 3.30% p.a. 3.30% p.a. RM10,000

    Fixed Deposit Rates for Juniors/children in 2018 (Updated on 12-Feb-2018)

    The list of banks/financial institutions offering junior FD account is given in the table below:

    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 3.30% p.a. 3.30% p.a. RM1,000
    Hong Leong Islamic 3 months 60 months 3.25% p.a. 3.30% p.a. RM1,000

    FD Promotional Rate 2018

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

    • You can earn an interest up to 5.18% p.a. on your investment of RM10,000 and more with Affin Bank FD. The offer is valid till 28 February 2018.
    • You can enjoy up to 4.30% p.a. interest rate on your investment in a 12-month FD with Hong Leong Bank. The promotion is valid till 28 February 2018.
    • With a minimum deposit of RM50,000 in OCBC fixed deposit, you can earn interest at a rate of up to 4.10% p.a. This validity period of this offer ends on 17 February 2018.
    • With a 13-month RHB FD tenure, you can get an interest rate of up to 4.25% p.a. You can enjoy this offer only till 31 March 2018.

    Banks offering Foreign Currency FD in 2018 (Updated on 12-Feb-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 1.265% p.a. Up to 0.00% p.a. Up to 0.775% p.a. - Up to 0.80% p.a. Up to 2.11% 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.

    News About Fixed Deposits in Malaysia

    • 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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