Keeping the actual requirements of citizens of 65 years and above, Malaysian banks have designed senior citizen fixed deposit (FD) accounts. Such FD accounts usually come with a higher interest/profit rate than usual. You also get the opportunity to make partial withdrawals in the case of emergencies.
Top Senior Fixed Deposit Accounts Available in Malaysia
|Bank Name||Senior Citizen Fixed Deposit Account||Interest Rate Applicable||Deposit Tenure|
|Public Bank||PB Golden 50 PLUS||From 3.30% p.a. up to 3.45% p.a.||From 1 month up to 60 months|
|BSN||BSN Term Deposit Senior Citizen||From 3.55% p.a. to 3.60% p.a.||From 12 months up to 60 months|
|RHB Bank||RHB Senior Fixed Deposit||Starts at 3.35% p.a. Rates for longer tenure deposits are negotiable||From 12 months up to 60 months|
|Hong Leong Bank||Senior Savers Flexi FD||3.25% p.a.||From 12 months up to 60 months|
|CIMB Bank||Big Plus 50 Plus||From 3.20% p.a. up to 3.65% p.a.||From 1 month up to 60 months|
How does a Senior Citizen Fixed Deposit Work?
Similar to any other FD account, you have to check if you are eligible to open a senior citizen FD account as per the guidelines set by your bank. If you do, you can open a senior FD account. Check for the minimum deposit amount and deposit the sum in your account. Choose a tenure to lock your money in the account. The interest/profit rate for your account is mostly determined by the tenure you choose.
You can choose to get a monthly payout of the interest amount. In another case, you can also choose to receive the interest upon maturity or at the intervals you wish.
At the end of the tenure, you can withdraw the deposit amount or request for renewal. When you renew the FD account, the interest/profit rate at the time of rollover will be applicable. The deposit tenure will remain the same for the next cycle as well.
What You Can Expect from a Senior Citizen Fixed Deposit
- The senior citizen FD account can be opened by individuals aged 50 years and above.
- Enjoy monthly interest payout to your savings/current account.
- Deposit tenure ranging from 1 month up to 60 months.
- The account can be closed at any time. However, you may not get the promised interest.
- Your money remains safe when you deposit as the FD accounts are eligible for protection by Perbadanan Insurans Deposit Malaysia (PIDM).
- You can choose a rollover on the deposit sum upon maturity.
- The interest/profit will be credited to your savings/current account that can be accessed via a cheque or a debit card.
The senior citizen FD account helps you to stay financially independent when you grow old. So, if you have received a lump sum for retirement, you can deposit the money in one of the senior FD accounts to enjoy higher returns.