There are fixed deposit policies that can be invested on, in Malaysia in the name of minors. Currently there is one that is offered by Hong Leong Bank but more are expected to follow. This is a new product known as the Hong Leong Junior Fixed Deposit. When we base the new products, we can expect them to be similar to this product.
Hong Leong Junior Fixed Deposit Scheme
Though this is in the name of the child, it will ofcourse be the parents investing their money. This is a great investment, long term in nature. It is basically a Junior Savings Account that even comes with a Junior Debit Card allowing the account holder to make cash withdrawals while earning high interest. This is also a great way to introduce your child to the advantages of personal finance at an early age and also help save.
Features and Benefits of Fixed Deposit For Juniors
The main features and benefits of the Hong Leong fixed deposit scheme for juniors include:
- You require only a minimum deposit of RM1000 for this FD.
- There is provision for Auto-Renewal, to continue saving.
- The Interest is calculated on a daily basis, allowing more earnings in the long run.
- Early withdrawal of the deposit amount is also allowed
- This is a CASA Bundled Fixed Deposit and hence very reliable.
Hong Leong Junior Fixed Deposit Interest Rates
If you deposit RM 1000 or more for 12 months the interest rate calculated per annum is 3.35%. But if you deposit the same amount for a period of 24 to 60 months the interest rates are negotiable and hence can get much higher.
Eligibility Criteria for Junior Fixed Deposit
A savings account is required and also it is necessary that the account be 18 years or less.
Fees and Charges
Annual charges are waived off and in the case of loss of the Hong Leong Junior Fixed Deposit certificate the bank charges RM 5.30 which is inclusive of 6% GST.