5-year fixed deposits are long-term investments schemes offered by banks in Malaysia. The fixed deposit tenures usually starts from 1 month up to maximum 60 months. These fixed deposit schemes are quite helpful to earn returns on your savings and maximise your profits in a safe way.
Different types of 5-year fixed deposit schemes available in Malaysia
- Affin Bank Fixed Deposits: Affin Bank offers a fixed deposit scheme for 60 months with an interest rate of 4% p.a.
- BSN Fixed Deposits: BSN offers term deposits at an interest rate of 3.50% p.a. for 60 months.
- Alliance Bank Fixed Deposits: Alliance Bank offers Alliance FD Gold fixed deposit for 60 months where the interest rate is negotiable with the bank.
- CIMB Fixed Deposits: CIMB offers Unfixed Deposit scheme at an interest rate of 3.40% p.a. for 60 months.
- AmBank Fixed Deposits: AmBank offers 3 different types of fixed deposit schemes for 60 months with interest rates ranging from 3.40% up to 3.45% p.a.
- MBSB Fixed Deposits: MBSB offers 2 types of fixed deposit schemes for 60 months with interest rates ranging between 4.10% and 4.20% p.a.
- HSBC Fixed Deposits: HSBC offers Time Deposit scheme for 60 months at an interest rate of 3.90% p.a.
Features of 5-year fixed deposits:
- 5-year fixed deposit schemes allow you to secure your deposits for a longer period.
- You can earn higher interest rates on 5-year fixed deposits.
- Your investments in 5-year fixed deposits are guaranteed as they are covered by PIDM.
- The interest rates will be determined upfront upon placement of your 5-year fixed deposit account.
- You can renew your 5-year fixed deposit automatically along with the principal amount and the earned interest.
- Many banks in Malaysia allow you to manage your 5-year fixed deposit account through online banking.
Benefits of 5-year fixed deposits
- Mode of Payment: You can earn interest on your deposits in various ways. You can receive the total earned interest at maturity, quarterly or on a monthly basis. For interest earned monthly, you may have to open a savings or current account with the bank for the interest to be credited.
- Premature Withdrawals: Though you open a fixed deposit for 5 years, most banks in Malaysia allow you to withdraw your fixed deposit prematurely if required. In cases where you need urgent funds, you can always withdraw your fixed deposit to meet your financial needs. Usually, banks have a specific period of completion for fixed deposits set at 3 months. When you complete that specific period, then you will earn half the interest for the completed months only. Withdrawals made prior to 3 months will earn no interest.
- Partial Withdrawals: Some banks allow you to make partial withdrawals on your 5-year fixed deposits. Banks will specify a particular amount to withdraw and a particular amount to maintain as balance on your fixed deposit. As long as you meet the terms of your respective bank, you can earn interest on the remaining balance even after making partial withdrawals on your fixed deposit.
- Low Deposit Amount: Even if you do not have expendable funds to invest, you can deposit a lower amount and earn interest on it. Banks usually require a minimum deposit amount of RM1,000 or more for 5-year tenures.
You can open a 5-year fixed deposit with cash placements. Some banks allow you to open fixed deposits through fund transfers. You can also make a placement through cheque where the fixed deposit will be opened on the day the cheque is cleared.
Eligibility criteria for 5-year fixed deposits
Nationality Criteria: Most banks in Malaysia have basic criteria to be eligible to open a fixed deposit account for 60 months. Such criteria would include being a Malaysian citizen or a permanent resident. Some banks allow for foreigners residing and working in Malaysia to open a 5-year fixed deposit account.
Age Criteria: The minimum age criteria for most 5-year fixed deposits is 18 years and above. Minors younger than 18 years can also have 5-year fixed deposits, but the account should be opened in the name of a parent, trustee or legal guardian who should be aged 18 years and above. The minor would be a beneficiary of that fixed deposit account.
Some banks have specific fixed deposit schemes designed for different age brackets such as AmBank50Plus Fixed Deposit which is available for only those aged 50 and above. The eligibility criteria for each 5-year fixed deposit will be specifically mentioned by the bank.
Applicant type: You can open an individual, joint or trust fixed deposit account for 5-year tenure. Clubs, societies, associations, government bodies and corporates can also open 5-year fixed deposit accounts.
Required documents for 5-year fixed deposits
5-years fixed deposits require minimal documents. Identification proof is compulsory to open a fixed deposit account. This would include a copy of MyKad for Malaysian citizens and valid passport for foreigners. Foreigners working in Malaysia would also need to prove a valid working permit.
Banks would specify what additional documentation is required in different cases such as for opening non-individual fixed deposits or opening a fixed deposit for a minor. For joint fixed deposits, the joint account holder must provide proof of identification.
How to open a 5-year fixed deposit account?
- Check whether an application form is available on the bank website. If available, download and complete the form with relevant information. Visit the nearest branch with completed application form, deposit money and required documents to open a 5-year fixed deposit.
- You can contact the bank using contact information where a bank agent will help you with the process.
- Some banks provide a contact form on their websites. Complete and submit the contact form. A bank representative will contact you to help you to open a 5-year fixed deposit.