A junior fixed deposit account is a financial tool that’s designed to secure for your children’s future. You can invest a specified sum in a fixed deposit (FD) account that’s in your child’s name and set aside an amount for the expenses related to him/her. There are a few banks in Malaysia that provide junior fixed deposit accounts.
Top Junior Fixed Deposit Accounts in Malaysia
|Bank Name||Junior FD Account||Interest/Profit Rate||Deposit Tenure|
|Alliance Bank||Junior Smart Term Deposit-i||From 3.20% p.a. up to 3.35% p.a.||Starts from 1 month; can go beyond 12 months|
|Hong Leong Bank||Junior Fixed Deposit||3.25% p.a.||From 12 months up to 60 months|
|MBSB Bank||MBSB Junior Term Deposit-i||From 3.35% p.a. up to 4.35% p.a.||From 1 month up to 60 months|
|Hong Leong Islamic Bank||Junior Fixed Deposit-i||From 3.20% p.a. up to 3.25% p.a.||From 3 months up to 60 months|
|BSN||BSN Term Deposit-i||From 3.20% p.a. up to 3.50% p.a.||From 1 month up to 60 months|
Some banks also provide junior savings accounts, which can be linked to junior fixed deposit accounts. With the monthly interest payout feature, your children can get some cash in hand for their day-to-day expenses. Similar to a junior FD account, there are FD accounts for senior citizens as well.
How a Junior FD Account Works
Your child’s age must be below 18 years to be eligible for a junior FD account. BSN Term Deposit-i account specifies that the entry age must be 15 years and above to open the account. If your child’s a minor, the account must be opened by the parents/guardian.
Check for the minimum deposit amount for the account and fulfil the criterion. You can, then, specify the deposit tenure up to 60 months. If you want a longer tenure, you can discuss with the staff or instruct the bank to renew the account up to a period of time you wish for. The interest/profit rate for the account will be determined based on the tenure you choose.
You can let the money grow in an FD account and rest assured. The deposit will increase over time and reach your hands when your child needs it for higher education or set up a business.
What You Can Get from a Junior FD Account
- Earn higher returns when you choose a longer term.
- Choose the tenure based on your convenience and requirements.
- The minimum deposit amount for such an account starts at RM500 or RM1,000 and may vary with banks.
- The interest/profit will be calculated on a daily basis.
- The deposit amount is protected by Perbadanan Insurans Deposit Malaysia (PIDM).
- You can get access to the interest/profit on a monthly basis.
- Earn an interest/profit on the remaining balance when you make a partial withdrawal.
- You can make premature withdrawals after completing 3 months from the account commencement date and still earn half the original interest/profit.