Are you looking to make promising and secure investments? Due to the lack of exposure and experience, new and prospective investors might find it challenging to select investment plans. If you’re new to investing in Malaysia, one of the best ways to begin your investment is through Fixed Deposits. In this article, we will be sharing all you must know about Fixed Deposits, followed by the latest Fixed Deposit Rate in Malaysia.
What Is A Fixed Deposit Account?
A Fixed Deposit account enables you to keep your money for a fixed period of time and generate interests. The interest rates of Fixed Deposit accounts in Malaysia are usually higher than that of conventional savings accounts. Fixed Deposit, otherwise known as term deposit and time deposit, is popular among first-time investors. This is because the investment method has loyalty rewards, high returns, and essay managements. Besides, Fixed Deposits are also under the protection of government insurance.
Differences Between Fixed Deposit Account & Savings Account
A Fixed Deposit account is not the same as a saving account. The following aspects can differentiate the two types of accounts:
| Aspects | Fixed Deposit | Savings |
| Purpose | To earn interests by storing a large amount of money | To save incomes and perform cashless transactions |
| Interest Rates | higher | lower |
| Minimum Deposit | Ranges from RM1,000 to RM5,000 | RM20 |
| Placement Period | Fixed period, with interest and principal paid at maturity | Continuous, users can close their accounts anytime |
| Deposit Frequency | Once, can be renewed with fresh funds | No restrictions placed on deposit frequency |
| Cash Withdrawals | Restricted, can lead to account termination and loss of interest | No restrictions placed on cash withdrawal, subjected to withdrawal limits |
Maximize Interest from Fixed Deposit
If you have spare cash in your hands, it can be easy to boost your income by investing in Fixed Deposit. In this section, we will be sharing some tips on how to maximize the interest of your Fixed Deposits.
1. Fixed Deposit Promotions
To attract new and returning customers, many banks organize Fixed Deposit promotions annually. If you enrol in Fixed Deposit investments during these promotions, you’re likely to enjoy a higher interest rate than the board rate.
Therefore, to keep yourself updated with the Fixed Deposit promotions of different banks, you can browse for the best Fixed Deposit rate online. Some recommended websites that contain updated Fixed Deposit rates include iMoney, RinggitPlus, Loanstreet, and CompareHero. Alternatively, you can also keep an eye on the official websites of different banks.
2. Compare Rates
If you’re looking to maximize your interest from Fixed Deposit, you will have to choose a bank that offers the highest interest rates. Similarly, you can browse include iMoney, RinggitPlus, Loanstreet, and CompareHero to compare the rates of different banks. Besides, you can compare the fixed deposit rate between banks by visiting their branches or browsing their websites.
3. Long Fixed Deposit Period
The longer you invest in Fixed Deposit, the higher the interest rate. However, before you choose the most extended Fixed Deposit program with the highest rate available in Malaysia, make sure that you do not need the invested money in the near future. If you withdraw your money before maturity, you will risk terminating your Fixed Deposit account and lose all your interest.
The Latest Fixed Deposit Rates in Malaysia (2020)
The Fixed Deposit programs in Malaysia usually last for either a month, three months, six months, nine months, or a year. The tables show the latest and highest Fixed Deposit rate offered by different banks in Malaysia as of July 2020. Different placement periods possess varying interest rates. All information tabulated is from RinggitPlus blog post entitled ‘Best Fixed Deposit Account in Malaysia’.
Top 1-month FD rates in Malaysia
| Bank Name | Product Name | Minimum Deposit | Interest/Profit Rate | Profit on RM10,000 | Depositor’s Insurance |
| Affin Islamic Bank | Affin Islamic Term Deposit-i | RM500 | 2.10% | RM17.50 | PIDM |
| Al-Rajhi Bank | Al-Rajhi Term Deposit-i | RM500 | 1.95% | RM16.25 | PIDM |
| MBSB Bank | MBSB Junior Term Deposit-i | RM500 | 1.85% | RM15.42 | PIDM |
| Bank Muamalat | Bank Muamalat Fixed Term Account-i | RM1,000 | 1.80% | RM15.00 | PIDM |
| Bank Islam | Bank Islam Term Deposit-i | RM500 | 1.75% | RM14.58 | PIDM |
Top 3-month FD rates in Malaysia
| Bank Name | Product Name | Minimum Deposit | Interest/Profit Rate | Profit on RM10,000 | Depositor’s Insurance |
| Affin Islamic Bank | Affin Islamic Term Deposit-i | RM500 | 2.20% | RM55.00 | PIDM |
| Al-Rajhi Bank | Al-Rajhi Term Deposit-i | RM500 | 2.05% | RM51.25 | PIDM |
| Bank of China | Bank of china Fixed Deposit Account | RM1,000 | 2.00% | RM50.00 | PIDM |
| MBSB Bank | MBSB Term Deposit-i | RM500 | 1.90% | RM47.50 | PIDM |
| India International Bank | India International Bank Fixed Deposit | RM1,000 | 1.85% | RM46.25 | PIDM |
Top 6-month FD rates in Malaysia
| Bank Name | Product Name | Minimum Deposit | Interest/ Profit Rate | Profit on RM10,000 | Depositor’s Insurane |
| Affin Islamic Bank | Affin Islamic Term Deposit-i | RM500 | 2.25% | RM112.50 | PIDM |
| Bank Rakyat | Bank Rakyat Term Deposit Account-i | RM500 | 2.15% | RM107.50 | – |
| Al-Rajhi Bank | Al-Rajhi Term Deposit-i | RM500 | 2.10% | RM115.00 | PIDM |
| Agrobank | Agrobank Fixed Return Investment Account-i | RM1,000 | 2.05% | RM102.50 | – |
| Bank Muamalat | Bank Muamalat Fixed Term Account-i | RM1,000 | 1.95% | RM97.50 | PIDM |
Top 9-month FD rates in Malaysia
| Bank Name | Product Name | Minimum Deposit | Interest/ Profit Rate | Profit on RM10,000 | Depositor’s Insurance |
| Bank Rakyat | Bank Rakyat Term Deposit Account-i | RM500 | 2.20% | RM165.00 | – |
| Al-Rajhi Bank | Al-Rajhi Term Deposit-i | RM500 | 2.15% | RM161.25 | PIDM |
| Bank of China | Bank of China Fixed Deposit Account | RM1,000 | 2.10% | RM157.50 | PIDM |
| MBSB Bank | MBSB Junior Term Deposit-i | RM500 | 2.05% | RM153.75 | PIDM |
| Bank Muamalat | Bank Muamalat Fixed Term Account-i | RM1,000 | 1.95% | RM146.25 | PIDM |
Top 12-month FD rates in Malaysia
| Bank Name | Product Name | Minimum Deposit | Interest/ Profit Rate | Profit on RM10,000 | Depositor’s Insurance |
| Kuwait Finance House | KFH International Commodity Murabahah Deposit-i | RM500 | 2.40% | RM240.00 | PIDM |
| Agrobank | Agrobank Fixed Return Investment Account-i 45 Plus | RM1,000 | 2.35% | RM235.00 | – |
| Al-Rajhi Bank | Al-Rajhi Term Deposit-i | RM500 | 2.25% | RM225.00 | PIDM |
| Bank Simpanan Nasional | BSN Term Deposit | RM500 | 2.20% | RM220.00 | PIDM |
| Bank of China | Bank of China Fixed Deposit Account | RM1,000 | 2.15% | RM215.00 | PIDM |
Tabulated below are the latest and best Fixed Deposit promotions offered by different banks as of July 2020. Again, all information are retrieved from RinggitPlus blog post that is entitled ‘Best Fixed Deposit Account in Malaysia’.
| Bank | Effective Rate (% p.a.) | Minimum Deposit | Maximum Deposit | Tenure | Promotion Period |
| AmBank/AmBank Islamic (FD/TD-i and Current/Savings Account Combined Promotion) | 3.30 3.50 (for AmBank SIGNATURE Priority Banking customers) | RM7,000 (for FD) RM3,000 (for current/savings account) | RM700,000 (for FD) RM300,000 (for current/savings account) | 6 months | 4 June to 31 Aug 2020 |
| Bank Rakyat (Term Deposit-i Campaign – only for existing customers) | 2.80 (7 months) 3.00 (11 months) | RM10,000 | N/A | 7 months 11 months | 15 June to 15 Nov 2020 |
| Hong Leong Bank (eFixed Deposit/eFixed Deposit-i Digital Days Promotion) | 2.75 | RM5,000 | RM2 million | 3 months | 1 to 31 July 2020 |
| OCBC Bank (Premier Deal) | 3.15 | RM10,000 | RM3 million | 3 months | 1 Apr to 31 Dec 2020 |
| Public Bank (FD/TD-i Campaign) | 2.30 | RM10,000 | RM10 million | 3 months | 1 to 31 July 2020 |
| RHB Bank (Commodity Murabahah Deposit-i Promotion) | 2.60 (3 months) 2.70 (6 months) | RM10,000 | N/A | 3 months 6 months | 26 June to 31 August 2020 |
Applying for a Fixed Deposit Account
Fixed Deposit accounts can be opened at any bank branches. Before you head to the nearest bank, consider the following factor:
1. Your Financial Circumstance
You will need at least RM1,000 as the initial deposit for your Fixed Deposit account. Before placing your money under Fixed Deposit, make sure that you do not need the invested money soon. If you’re running out of money, it is better to not invest in Fixed Deposit. This is because once you spend the money in your Fixed Deposit account, the account will be terminated, and you will lose all the interest.
2. Supporting Documents
You will only require two things to open a Fixed Deposit account, namely the initial deposit and your identity card (MyKad).
You can prepare your initial deposit in the forms of cash or cheque. Alternatively, you can also directly transfer your initial deposit into your new Fixed Deposit account via online transaction.
If you would like to open a joint Fixed Deposit account, you will need to provide the identity cards of all account members.
3. Consider Online Portals
Some banks are beginning to offer Fixed Deposit account application online. Therefore, before you visit the bank, browse the bank’s official website to see if there is an online application portal for Fixed Deposit accounts. Applying and opening the account online can save you the hassle of queueing and waiting at the bank.
4. Fixed Deposit Certificate
After opening a Fixed Deposit account, you must keep the Fixed Deposit Certificate safe. A Fixed Deposit Certificate serves as proof of your placement. It contains information such as your deposit amount, placement period, interest rate, and date of maturity.
You will need this certificate to perform any procedures related to your Fixed Deposit account. If you lost your certificate, contact the bank as soon as possible. Although the bank will issue a new certificate for you, you will be charged up to RM25.
These are all you must know about the Fixed Deposit and the interest rate in Malaysia. We hope you find this article helpful. If you enjoy reading this article, discover more financing and banking articles via LokaPost and more!
