For those of you who want to get into investing but don’t know how, the Fixed Deposit is an ideal starting point. Structured very similar to a savings account, fixed deposits offer investors a guaranteed interest on the deposited sum for a specific period of time provided the investor does not make any withdrawals. Unlike savings accounts, fixed deposits do not give access to the cash till the end of the tenure. Making premature withdrawals would risk losing any returns. The interest provided on fixed deposits are also significantly higher and is paid out either on maturity or at regular intervals such as quarterly or half yearly.RHB offers fixed deposits for those who want to see their money grow. They offer tenures ranging from 1 month to 5 years and these fixed deposits can be opened either on an individual basis or through joint applications. Investors can also be assured of the safety and guarantee of the fixed deposits as they have been guaranteed under PIDM which means to say even if the bank was to fail, the deposited money is guaranteed by the government. The investors only need to watch their money grow through the competitive interest rates offered by RHB. These interest rates begin at 3.15% for a one month tenure and go up to 3.60% for tenures of 5 years. To know more about the product, kindly read on.
Features of RHB Fixed Deposit
Features and benefits of fixed deposits with RHB can be outlined in the following points –
- RHB has a widespread accessible network across South East Asia
- Fixed deposits come with tenures as low as 1 month to as high as 5 years
- Deposits can be as low as RM 500
- Partial withdrawals from fixed deposits allow for a healthy liquidity option
- Attractive interest rates for a variety of tenures
RHB Fixed Deposit Schemes
Fixed deposits under RHB Bank can be categorised under three variants. Each variant comes with its own set of features and benefits. The availability of each scheme is at the discretion of the bank. The schemes under RHB fixed deposits can be mentioned as follows –
- Ordinary Fixed Deposits – With lock-in tenures ranging from one month to 5 years, these deposits can have a minimum deposit amount of RM 500 for tenures of 2 months and above. The minimum deposit amount for a 1 month tenure is RM 5000 though. These deposits can be availed by individuals, proprietorships, societies, associations, firms, institutions (both governmental and financial) as well as business enterprises. Partial withdrawals are allowed on these deposits in multiples of RM 1000 on the condition that the minimum balance in the deposit is RM 5000. Overdraft facilities are also available, up to the entire amount of the deposit
- RHB Senior Fixed Deposits – These accounts are meant for individuals above the age of 50 years at the time of opening the deposit and require a minimum deposit amount of RM 10000 per account. The lock in periods of these deposits could be chosen from 1 year to 5 years. Partial withdrawals can be made in multiples of RM 1000 provided that the minimum balance in the deposit is RM 10000. Interest is calculated daily on these deposits and Loan through overdraft is possible up to the entire amount of the deposit. In addition to that, the first five cashier’s orders or demand drafts made on a deposit of this kind for buying a public share or issue of right enjoy a full commission waiver
- RHB P.A.Y.S. Fixed Deposits – Some of the key features of RHB’s P.A.Y.S. Fixed Deposit are elucidated below.
These deposits can be held for a tenure of 3 months.
In order to open this account, an amount of RM10,000 will have to be deposited an initial investment.
This account can be held by individuals over the age of 18 years.
Interest accrued in this account is paid out on a monthly basis. The interest so payable is transferred directly to the deposit holder’s account (current or savings).
This FD is guaranteed by PIDM i.e. the Deposit Insurance Corporation of Malaysia.
Interest Rates of RHB Fixed Deposits
RHB offers lucrative interest rates for fixed deposits with the bank. The list of rates applicable for fixed deposits and applicable tenures (as of July 2016) are mentioned in the table below –
|Tenure (in months)||Ordinary Fixed Deposit (<= RM 1 million)||Ordinary Fixed Deposit (> RM 1 million)|
Rates offered by the bank on fixed deposit are at the sole discretion of the bank and might be subject to change as per the prevailing terms set forth by the bank.
How to open a Fixed Deposit with RHB
One can visit any of the branches of RHB in their neighbourhood to get assistance on opening a new fixed deposit account. However, it would be advisable to carry a government recognised proof of identity, bank statements and a couple of passport size photographs if one is considering a visit to the bank for opening a fixed deposit account. It’s also worthwhile to call up the bank and enquire about the latest rates.
Other Products offered RHB:
Apart from offering Fixed Deposit,RHB offers other products and services which include:
- RHB Personal Loan
- RHB Home Loan
- RHB Car Loan
- RHB Renovation Loan
- RHB ASB Loan
- RHB Credit Card
- RHB Car Insurance
- RHB Insurance
News About RHB Fixed Deposit
RHBCap sure about cash call even Aabar Investment PJS doesn’t participate
It is too soon to mention if Aabar Investment PJS will participate in the cash call of the RHBCap. RHBCap is confident they will still manage to raise the required fund with or without Aabar Investment PJS decision.
Aabar Investment is the second largest shareholder in RHB Cap and they hold an equity stake of 21.9% Bank Negara Malaysia, ordered RHBCap to restrict and put a cap on the subscription of Aabar Investment from 21.9% to just 15%, this also ended up forcing RHBCap to extend their date of rights issue from 1st October to 23rd November 2015.
1st October 2015
RHB Capital prices its rights issue at RM 2.5 billion
RHB Capital has issued its rights at RM 2.5 billion offering them at a discount of 20.3%. This means that while the price of each rights was RM 6.03, now it will be RM 4.82 per rights share. Ever since the company announced discounts in April 2015, the prices of its rights shares have come down by almost 25%. Between the 7 and 8 of Sept 2015, the price per rights share came down to RM 5.94 which is a decline of 0.17% from 7 Sept. The current dilution, that stands at 16.7% is being considered higher than expected as a result of the rights prices which was lower than was expected.
MIDF Amanah Investment Bank have projected that the earning of RHB Capital will reduce to 9.8% as opposed to the projected earning of 10.5%. This means that its earnings from each share will be 67 sen as opposed to the projected 81 sen earning. The company has said that, in addition to the existing 2.59 billion shares issued, it will also be issuing almost 518 million new rights, one for every five shares already held.
10th September 2015