A fixed deposit is an ideal investment option for both, first-time investors and seasoned investors alike as it offers competitive interest rates and the deposits are covered under PIDM. A fixed deposit scheme for 1 year or 12 months is an ideal way of investing some cash for a shorter period of time. Below are the banks that offer 1-year fixed deposit schemes and the interest rates they offer.
Types of fixed deposit for 1 year schemes in Malaysia
In Malaysia, most of the banks offer fixed deposit schemes with 1-year tenures available. Here are some of the top schemes offered by Malaysian banks and financing institutes:
Affin Bank Berhad 1 Year Fixed Term Deposit Scheme: Affin Bank offers an interest rate of 3.80% p.a. on an FD with a 1-year tenure.
Bank Rakyat 1 Year Term Deposit: With a minimum deposit requirement of RM500, the Bank Rakyat FD offers an interest rate of 3.70% p.a. for 1-year tenures.
BSN 1 Year Term Deposit: The Bank Simpanan Nasional offers an interest rate of 3.50% p.a. on its 1 year term deposit scheme.
Bank Islam 1 Year Fixed Term Deposit: The bank offers the rate of 3.35% p.a. for a fixed deposit scheme.
Bank Muamalat Malaysia 1 Year Fixed Term Deposit: The one year fixed deposit scheme offers the rate of 3.35% p.a. to you.
Features and Benefits of 1 year fixed deposit schemes
- A 1 year fixed deposit scheme is ideal for those looking to invest for a relatively smaller period of time.
- The deposit certificate can be used as collateral to secure lines of credit such as personal loans, overdraft facilities and even credit cards.
- the deposits allow for premature withdrawals. Based on when the withdrawal was made, you would either get half the contracted interest rate for the completed months only or receive no interest at all.
- The deposits come with automatic renewal facility. You can choose to either have the principal and profit renewed or have only the principal amount renewed.
- The interest rate offered is guaranteed. The deposit amounts are also insured under PIDM for up to RM250,000 making it a safe mode of investment
- You can also open a foreign currency fixed deposit accounts with a choice of multiple foreign currencies. These foreign currency fixed deposits are not only insured under PIDM but also act as a hedge against inflation allowing you to retain the foreign currency deposit till such a time that the exchange rates are favourable.
Eligibility Criteria for 1 year fixed deposit scheme
- Nationality criterion: Malaysian as well as non-Malaysian citizen can apply for a fixed deposit scheme.
- You must be a minimum of 18 years old to make a fixed deposit investment.
- Minors below the age of 18 years must present a guardian who is above 18 years of age. The minor will be the beneficiary of the account.
Documents required for fixed deposit for 1 year
- A copy of valid NRIC or MyKad (Malaysian Identity Card)
- An authorised copy of valid passport (for a foreigner)
- A copy of address proof
- A valid proof of income (if applicable)
- Latest salary slips for 3 months (if requested)
- Latest bank statement for 3 months (for a self-employed candidate) (if requested)
A guarantor or a joint applicant should also provide the same set of documents to the bank while applying.
How to apply for a Fixed Deposit for 1 Year scheme in Malaysia
Offline application: You can visit the branch of the bank that you have chosen to open the fixed deposit and request for the application form. You must then submit the duly-filled application form along with the necessary supporting documents to initiate the processing of the application.
Online application: Many banks provide the facility of applying online for a fixed deposit scheme. You can go to the bank’s official website and apply for the fixed deposit for 1 year scheme.
Q. What is the maximum fixed deposit term offered by a bank in Malaysia?
A. A bank may offer the maximum tenure of 5 years (60 months) to an applicant.
Q. What is the benefit of opting for a 1-year tenure?
A. 1-year tenures offer a lower deposit requirement making it more affordable and the relatively shorter tenure will enable you to enjoy competitive interest rates on your deposit sum without having to lose out on liquidity for a long period of time.
Q. If I want to take out a small portion of money from the amount I have invest as a fixed deposit, will my interest rate be affected?
A. Some banks allow partial withdrawals. The interest earned will depend on when the withdrawal was made. Some banks will offer no interest on partial withdrawals whereas other banks will offer some interest depending on when the withdrawal was made.
Q. When will my fixed deposit account get automatic renewal?
A. Deposits are automatically renewed when they attain maturity. interest rates offered at time of renewal will be the prevailing rate and not necessarily the same rate that was offered initially.
Q. Can I obtain a fixed deposit scheme for 1 month?
A. Yes, most of the banks in Malaysia offer a minimum tenure of 1 month for a fixed deposit scheme. However, deposits with 1-month tenures have a higher minimum deposit requirement with most banks requiring a minimum deposit amount of RM5,000 for a 1-month tenure.