Fixed Deposits (FD) are a financial instrument from banks providing FD holders with higher returns than a normal savings/checking account.

Updated: Aug 24, 2023

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Fixed Deposits

  • According to data from the World Bank, individual banks in Malaysia typically offer Fixed Deposit (FD) rates at 3%, but this could be higher depending on promotions.
  • Typically, FD rates increase or decrease depending on the base rate, which is determined by the Overnight Policy Rate (OPR) set by Bank Negara Malaysia.
  • FD can be placed on auto-renewal (see FAQ below).
  • FD interest can be deposited into another account (i.e. savings account) OR included into the FD for renewal.

Types of Fixed Deposits

FD vs eFD

  • FD: over the counter transactions
  • eFD: most banks now allow you to place/uplift FD online via internet banking

Conventional vs Islamic FD

ConventionalIslam
Interest RatePredetermined between the depositor and the bankNo interest rate, but profit-sharing between buyer and seller
Early Withdrawal ClauseAllowed with penaltyAllowed with rebate
Who Can InvestAll but not Muslim-friendly as it violates the principles of riba.All and is Muslim-friendly.

Which Fixed Deposit to choose?

  • There are a couple of factors that you will need to consider:
    • Duration: Longer-duration FDs give you higher rates typically.
    • Total funds: If you have more funds, the banker will normally give you a better rate.
    • Urgency: Depends on when you need cash. If you commit to a long-term FD (more than 12 months), you will not be able to withdraw the money without incurring a penalty.
    • Minimum deposit requirements: Some FDs have high minimum deposit requirements which could require you to come up with higher amounts of cash to invest in.
    • Survivorship clause: Touch wood, if the holder of the account passes away with joint ownership with one of the family members, there needs to be a clause that allows them to claim it.
    • Ease of administration: Over-the-counter transactions normally require you to be there in person to invest or withdraw. eFD gives you the flexibility and time-savings to do it online.
  • Some fixed deposit promotions require placement into 2 separate accounts: part into a fixed deposit account, and part into a current or savings accounts (CASA). The effective returns will then be based on both the fixed deposit portion and CASA portion.
    E.g. 75% x 5.50% = 4.125% + 25% x 0.50% = 0.125% = Effective rate 4.25%

Best FD Rates

FD Promotions

  1. Bank Islam: 5.9% 12 months (min 10k; until Dec 31, 2023)
  2. Alliance Bank: 4.20% 6 months (min 1k; until Sep 30, 2023)
  3. Bank Simpanan Nasional: 5.88% (min 10k; until Dec 31, 2023)
  4. Public Bank: 4.05% 12 months (min 5k; until Sep 30, 2023)
  5. Hong Leong Bank: 3.95% 12 months (min 1k; until Aug 31, 2023)
  6. CIMB: 3.80% 12 months (min 1k; until Sep 13, 2023)

Private/Preferred Banking FD/Savings Accounts Rates

  1. Public Bank Red Carpet: 4.1% 12 months (min 300k; until Sep 30, 2023)

Senior Citizens FD Rate

  1. CIMB Golden Time 2 (Big Plus for 50 Plus): 2.90% 36-60 months | 2.85% 15-24 months | Minimum Deposit of RM30k
  2. Public Bank PB Golden 50 PLUS: 2.80% 6-60 months | 2.75% 3-5 months | 2.65% 2 months | 2.60% 1 month | RM10k – RM30k minimum deposit according to the tenure of fixed deposit
  3. RHB Senior Fixed Deposit: 3.05% 12 months

Junior Saving Accounts

  1. AmBank Savers G.A.N.G: 1.90% (up to 100k) | 0.50% (above 100k)
  2. Affin Junior Saver/School Adoption: 2.55% (up to 250k) | 0.90% (above 250k)
  3. BSN Smart Junior: 2.75% (up to 50k) | 0.25% (above 50k)
  4. RHB Junior Saver: 2.65% (up to 50k) | 0.55% (above 50k)
  5. Public Bank WISE Savings Account: 2.50% (up to 50k) | 0.35% (above 50k)
  6. Maybank imteen/Yippie: 2.70% (up to 50k) | 0.50% (above 50k)

High Yield Savings Accounts

  1. SCB Privilege$aver: up to 4.15% (0.05% base + 0.70% bonus deposit + 0.70% credit card + 0.70% debit card + 2.00% insurance/takaful)
  2. UOB Stash: up to 2.38% effective rate (200k deposit)
  3. Hong Leong Bank Pay & Save: up to 3.05% (2.05% min 2k monthly savings + pay 0.50% + spend 0.50%)
  4. OCBC 360: up to 3.10% (0.10% base + 1.00% deposit + 1.00% pay + 1.00% spend;  More info)
  5. OCBC Frank: up to 1.80%
  6. M2U Savers/i: 0.15% (below 2k) + 0.70% (2k – 50k) / 1.00% (balance above 50k)

Maybank Fixed Deposits Rates

Maybank (non-promotional) fixed deposit rates by comparison (updated July, 2023)

  • 1 month: 2.60%
  • 2 months: 2.65%
  • 3 – 5 months: 2.75%
  • 6 – 11 months: 2.80%
  • 12 – 35 months: 2.85%
  • 36 – 47 months: 2.90%
  • 48 – 59 months: 2.90%
  • 60 months: 2.90%

Maybank General Investment Account (GIA)

Maybank’s GIA-i is an investment account which gives your profit sharing returns at approximately FD rates. No PIDM protection. GIA no longer offers no penalty withdrawals (wef Aug 1, 2017).

CIMB Unfixed Deposit

CIMB unfixed deposit allows partial withdrawals in multiples of 1,000 prior to FD maturity date. PIDM protected. Early withdrawal penalties still apply. (More info)

E&OE. Please contact bank to confirm rates and other details.

FAQ

Q: Are there any concerns on FDs?
A: If your FD is on auto-renewal, it is considered as untouched money if passes 7 years and can be forfeited. (more info).
Furthermore, non-Islamic fixed deposits normally incur penalties if you withdraw them early.

Q: What is the difference between a high yield savings account vs FD?
You can put in & take out funds from a savings account at anytime with no penalties or affecting your returns %. The monthly interest will be based on your average account balance. Some “unfixed” FDs work in a similar way (but do check the T&C).

Q: What happens if I uplift (end) my FD early?
For a short-term FD (3 months or less), you will lose all FD interest* for early uplifting. For longer term FD (above 3 months), you will lose ~50% of FD interest for early uplifting. (*Profit sharing for Islamic FD)

Q: Can non-Muslims use Islamic FDs?
A: Yes, no restrictions.

Q: Can Muslims use conventional FDs?
A: For Muslims, on e an Islamic alternative is available, it is recommended to do so.

More Info

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Fixed Deposits

  • FD rates in Malaysia are around 3% (affected by FD promotions) and determined by the individual bank.
  • FD rates are affected by BNM base rate which is different depending on the bank and Overnight Policy Rate changes by BNM Monetary Policy Committee.
  • FD can be placed on auto-renewal (see FAQ below).
  • FD interest can be deposited into another account (i.e. savings account) OR included into the FD for renewal.

Types of Fixed Deposits

FD vs eFD

  • FD: over the counter transactions
  • eFD: most banks now allow you to place/uplift FD online via internet banking

Conventional vs Islamic FD

  • Conventional: a predetermined interest rate given between depositor and bank.
  • Islamic: following Shariah principles whereby there is no interest but based on profit sharing between buyer and seller.
  • For wholesale returns, Islamic FD must be for a Shariah compliant business.
  • Early withdrawal is allowed with rebate for Islamic FD and allowed with penalty for conventional FD.
  • Returns are fixed and agreed upfront for both conventional and Islamic FD.
  • Non-Muslims can use Islamic FD products.
  • Generally there are no distinct benefits for opting for Islamic or conventional FD.

Which Fixed Deposit to choose?

  • Check what FD gives you the best rate for your duration. The longer the duration, the better the rates typically.
  • Typically 12 months is a good duration and most promotional rates are for 12 months as well.
  • If you may need your funds urgently, you may consider a shorter term duration (i.e. 1, 3 or 6 months).
    Note: shorter duration may have higher minimum FD deposit requirements and lower returns
  • Suggested for eFD for increased flexibility and time savings versus over the counter.
  • Conventional rates are guaranteed. Islamic rates are non-guaranteed but will you will not be penalized for early uplifting.
  • If you have large sums (typically 100k and above), you can negotiate with your banker for better rates.
  • If you are opening a joint account with your spouse, child or parent, check with your bank to make sure there is a survivorship clause which enables you to lay claim on a jointly owned asset.
  • Some fixed deposit promotions require placement into 2 separate accounts: part into a fixed deposit account, and part into a current or savings accounts (CASA). The effective returns will then be based on both the fixed deposit portion and CASA portion.
    E.g. 75% x 5.50% = 4.125% + 25% x 0.50% = 0.125% = Effective rate 4.25%

Best FD Rates

FD Promotions

  1. Public Islamic Bank: 4.50% 18 months | 4.30% 12 months (min 5k; until Dec 31, 2022)
  2. AmBank: 4.50% 18 months | 3.85% 4 months | 3.75% 3 months | 3.50% 2 months | 3.38% 1 month (min 10k; until Dec 31, 2022)
  3. MBSB: 4.30% 18 months | 4.25% 15 months | 4.20% 12 months | 4.10% 9 months | 4.00% 6 months (min 5k; until Dec 31, 2022)
  4. Agro Bank: 4.25% 18 months | 4.10% 6 months (min 5k; until Feb 24, 2023)
  5. Hong Leong Bank: 4.05% 18 months | 4.05% 12 months | 3.85% 6 months | 3.65% 3 months (min 5k; until Jan 4, 2023)

Private/Preferred Banking FD/Savings Accounts Rates

  1. HSBC Premier: 4.38% 6 months (min 1m) | 4.28% 6 months (min 500k) | 4.18% 6 months (min 200k)
  2. SCB Priority: 4.88% 3 months (200k) + 3.5% 3 months (50k) = 4.40% effective rate

Senior Citizens FD Rate

  1. BSN Senior Citizen: 3.25% (12 months) /3.20% 15+ months
  2. CIMB Golden Time 2 (Big Plus for 50 Plus): 3.10% 60 months | 3.00% 48 months | 2.90% 36 months |2.85% 6-35 months (min 1k)
  3. Public Bank PB Golden 50 PLUS: 2.90% 12 months | 2.85% 6 months | 2.75% 3 months (min 30k for 12 months )

Junior Saving Accounts

  1. AmBank AmGenius: 2.20% (up to 100k) | 0.50% (above 100k)
  2. Affin Junior Online: 2.30% (up to 250k) | 0.80% (above 250k)
  3. BSN Smart Junior: 2.50% (up to 50k) | 0.25% (above 50k)
  4. RHB Junior Saver: 2.40% (requires parent privilege account)
  5. Public Bank WISE Savings Account: 2.40% (up to 50k) | 0.35% (above 50k)
  6. Maybank Yippie: 2.45% (up to 50k) | 0.45% (above 50k)
  7. SCB Young Savers Account: 2.40% (up to 50k) | 0.25% (above 50k)

High Yield Savings Accounts

  1. SCB Privilege$aver: up to 4.15% (0.05% base + 0.70% bonus deposit + 0.70% credit card + 0.70% debit card + 2.00% insurance/takaful)
  2. UOB Stash: up to 2.38% effective rate (200k deposit)
  3. Hong Leong Bank Pay & Save: up to 3.05% (2.05% min 2k monthly savings + pay 0.50% + spend 0.50%)
  4. OCBC 360: up to 3.10% (0.10% base + 1.00% deposit + 1.00% pay + 1.00% spend;  More info)
  5. OCBC Frank: up to 1.80%
  6. M2U Savers/i: 0.15% (below 2k) + 0.70% (2k – 50k) / 1.00% (balance above 50k)

Maybank Fixed Deposits Rates

Maybank (non-promotional) fixed deposit rates by comparison (updated April, 2022)

  • 1 month: 1.75%
  • 2 months: 1.90%
  • 3 – 5 months: 1.95
  • 6 – 11 months: 2.05%
  • 12 – 35 months: 2.10%
  • 36 – 47 months: 2.15%
  • 48 – 59 months: 2.25%
  • 60 months: 2.35%

Maybank General Investment Account (GIA)

Maybank’s GIA-i is an investment account which gives your profit sharing returns at approximately FD rates. No PIDM protection. GIA no longer offers no penalty withdrawals (wef Aug 1, 2017).

CIMB Unfixed Deposit

CIMB unfixed deposit allows partial withdrawals in multiples of 1,000 prior to FD maturity date. PIDM protected. Early withdrawal penalties still apply. (More info)

E&OE. Please contact bank to confirm rates and other details.

FAQ

Q: Are there any concerns on FDs?
A: If your FD is on auto-renewal, it is considered as untouched money if passes 7 years and can be forfeited. (more info)

Q: What is the difference between a high yield savings account vs FD?
You can put in & take out funds from a savings account at anytime with no penalties or affecting your returns %. The monthly interest will be based on your average account balance. Some “unfixed” FDs work in a similar way (but do check the T&C).

Q: What happens if I uplift (end) my FD early?
For a short-term FD (3 months or less), you will lose all FD interest* for early uplifting. For longer term FD (above 3 months), you will lose ~50% of FD interest for early uplifting. (*Profit sharing for Islamic FD)

Q: Can non-Muslims use Islamic FDs?
A: Yes, no restrictions.

Q: Can Muslims use conventional FDs?
A: For Muslims, on e an Islamic alternative is available, it is recommended to do so.

More Info

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