Best FD Rates in Malaysia – Earn up to 3.95% for one year

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What is a Fixed Deposit (FD)

Before you search for the best FD rates in Malaysia, first a quick summary of what a FD is. A FD is a type of savings or investment account that guarantees a rate of interest for a fixed period offered by all banks in Malaysia. Unlike most regular savings accounts that calculates interest on a daily basis, no interest is paid to you if you decide to withdraw or uplift just one sen of your money before the end of the FD period, the maturity date . This means a smart saver will only enter into FDs when they are able to put cash aside for the entire period.

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Fixed Deposit (FD) vs. Instant access savings (Savings Accounts)

FDNormal instant access savings
+ Generally higher rate of interest+ Easy access to your savings
+ Guaranteed interest rate+ Interest calculated daily
+ Easy calculations for your return+ Generally lower minimum amount to open
- Less flexible/liquidity- Lower rate of interest

You might think putting your money in a normal savings account means you will get high rates of interest. But let’s take a real life example of the extra money you could be saving with higher FD rates over the savings account from the same banking institution, CIMB Bank with a amount of RM25,000.

CIMBInstant Access SavingsFixed DepositExtra RM straight into your pocket!
Interest Rate0.10%3.00%
1 MonthRM2.08RM62.50RM60.42
Interest Rate0.10%3.05%
3 MonthsRM6.25RM187.97RM181.72
Interest rate0.10%3.15%
12 MonthsRM25RM798.97RM773.97
The interest rate can vary depending on the length of time you what to keep your money locked up. Normally, the longer the FD time period, the higher the interest rate the banks will offer as represented by the table above. Rates effective as of 23/01/2014.

Why do banks offer higher rates on FD?

It is also very important to know that the longer you fix for, the more you are risking the fact that an unpredicatable future means this could be a bad choice. If interest rates were to increase rapidly, you would’ve lost the flexibility to change and switch to a better FD account without losing the interest that you had earned so far. That is one of the reasons why banks can give you higher interest rates than most savings accounts because you are taking this ‘time risk.’ Furthermore banks don’t pay interest if you withdraw any funds earlier than your selected maturity. This means you have more of an incentive to keep your money with them until the end of the period, thus holding your cash for longer over basic savings accounts!

 

Do you depend on savings interest as your income source?

When using fixed rate savings, you won’t usually get paid monthly interest. Therefore many who rely on interest earned from savings as an income stream don’t use FDs, even though they’re paying higher FD rates. Yet there’s a way to work around this easily.

Here’s an example: Ali has RM100,000, and can get 4% in a 12-month FD and only 1% in an instant access savings account. He would like about RM4,000 of interest from these savings to add to his income for spending. To do this, he should put RM96,000 in the FD, and RM4,000 in the instant access savings. Then spend the instant access money over the year, knowing the RM3,840 interest earned in the fixed account will make up for it. He’ll effectively get the high rate and be spending the interest.

This way you can grab the high FD rate accounts, but retain access to enough cash in the meantime. Remember though, if you might need to get at the whole lump within the fixed term, this trick won’t help and FDs may not be for you.

Is my money safe in Fixed Deposits?

During the 2008 financial crisis, global banks around the world starting collapsing and since then, people started to question the security of their savings. The possibility of local and foreign banks in Malaysia remaining in business forever is not guaranteed and thus your savings could be at risk should a bank fail. So is your money safe?

The golden rule to saving is to ensure you put your cash into a Malaysia regulated bank that is protected under the Perbadanan Insurans Deposit Malaysia (PIDM) membership scheme. PIDM protects your bank deposits and will promptly reimburse you on your insured deposits should a member bank fail and there is no charge for this insurance protection. Keep an eye out for the logo at your banking institution (image below).

Savings of up to RM 250,000 is guaranteed by the PIDM per institution so if you have less than than, you don’t have too much to worry about. If you have more to save, you can get protection on your entire savings by dividing your savings into several FD accounts/bank institutions.

Example: you had RM1,000,000 and didn’t want to take any risk, you could open 4 separate FDs in 4 separate banks.

Another way to protect your savings is to open joint accounts because they also enjoy separate deposit insurance under the PIDM scheme. You could place RM250,000 into your own FD but also open a joint FD accounts with your father, mother spouse etc. That way, you can enjoy high FD rates on large balances without worrying too much about the limit.

What you are effectively doing is spreading the risk over many banks and thus not putting all your eggs into one basket. Click here for a list of all PIDM member institutions.

See the full Are My Savings Safe in a Bank Article.

The Best 1-Month FD Rates – up to 3.40% p.a.

Keeping money in a 1-month FD is a simple way to increase your interest income without having to sacrifice too much short term requirement of funds. By managing your monthly incomings and outgoings you can organise a different 1-month FD every month and still have access to your funds when you need it on one day each month.

Affin Bank FD Plus – Highest 1-month rate at 3.40% p.a
Drawback: limited branches in Malaysia, minimum deposit of RM10,000

Interest Rate: 3.40% p.a
Minimum Deposit:
RM 10,000
Minimum Age Requirement: 18 years
Tenure: 1-month
Features:
1. Flexible period of investment from 1 month to 12 months.
2.Automatic renewal upon maturity.
3.Profit earned can be automatically credited into your Current Account and Saving Account.
4. Free Debit Card for convenient retail purchases with 0.5% cash transaction rebate.
5. Eligible for protection by PIDM.

Calculated Interest:

Affin Bank FD Plus3.40% p.a.
Deposit Amount1-month interest
RM10,000 RM27.90
RM20,000 RM55.80
RM50,000 RM139.51
Affin Bank logo
Go to Affin Bank
Affin Bank’s rate of 3.40% p.a is market leading among the more established banks in the industry, but only marginally. Most large banks in Malaysia offer between 2.90%-3.00% for 1-month FDs. To enjoy the attractive interest rate, you are required to place a minimum of RM10,000 in Affin FD Plus and RM1,000 in your AFFINPLUS or Current or Savings Accounts.

 

MBSB Conventional Fixed Deposit – 1-month FD rate at 3.30% p.a.
Drawback: no explict guarantee from PIDM, only Ministry of Finance implicit guarantee

Interest Rate: 3.30% p.a
Minimum Deposit:
RM 1,000
Minimum Age Requirement:
18 years
Tenure: 1-month
Features:
1. Profit rate is paid higher than normal Savings Account.
2. Deposit of more than RM1,000, profit is paid monthly.
3. Flexible tenures from 1 month until 60 months.

Calculated Interest:

MBSB Conventional Fixed Deposit 3.30% p.a.
Deposit Amount1-month interest
RM1,000RM2.71
RM20,000 RM54.19
RM50,000 RM135.46
mbsb logo
Go to MBSB
MBSB’s Fantastic Returns “Individual Rate” is leading the market at 3.30% p.a. However, our main concern is with their PIDM status. As MBSB is a Cooperative Bank, they are not covered under this explicit guarantee. As such, you will only get implicit protection from the Ministry of Finance under the Development of Financial Institution Act (DAFIA).

 

The Best 1-month FD rate for Senior Citizens

MBSB Fantastic Returns “49-ners” – highest 1-month senior citizens FD among major banks at 3.40% p.a.
Drawback: minimum age of 49 years, no explict guarantee from PIDM with only Ministry of Finance implicit guarantee

Interest rate: 3.40% p.a
Minimum Deposit:
RM1,000
Minimum Age Requirement:
49 years
Tenure: 1-month
Features:
1. High return of profit compared to Normal Fixed Deposit.
2. Flexible tenures from 1 month until 60 months.

Calculated Interest:

MBSB Fantastic Returns “49-ners”3.40% p.a.
Deposit Amount1-month interest
RM1,000 RM2.79
RM20,000 RM55.80
RM50,000 RM139.51
mbsb logo
Go to MBSB
MBSB’s Fantastic Returns “49-ners” is market leading among the more established banks, but only by a slim margin. Most large banks in Malaysia offer 2.90%-3.00% p.a for a 1-month tenure. Senior citizens (49 years or older) who are willing to deposit RM1,000 of their money can enjoy leading market rates.


The Best 3-Month FD rates – up to 3.80% p.a

Affin FDPLUS2 – Competitive 3-month FD rate at 3.80% p.a.
Drawback: limited branches in Malaysia, minimum deposit of RM5,000

Interest Rate: 3.80% p.a
Minimum Deposit:
RM5,000
Minimum Age Requirement:
18 years
Tenure: 3-month
Features:
1. Invest as foreign currency
2. Option to remit abroad for education
3. Flexible and convenient
4. Eligible for protection by PIDM.

Calculated Interest:

Affin FDPLUS23.80% p.a.
Deposit Amount3-month interest
RM5,000RM46.84
RM20,000 RM187.35
RM50,000 RM468.38
Affin Bank logo
Go to Affin Bank
Affin Bank’s Affin FDPLUS2 is a market leader at 3.80% p.a. Affin FDPlus2 is a fixed deposit account designed for Malaysians who want to save their money in foreign currency of your choice. All major currencies are on offer: US Dollars, Great British Pounds, Euros, Australian Dollars, Singapore Dollars, and New Zealand Dollars.


The Best 6-Month FD rates – up to 3.78% p.a.

Affin Bank FD Plus – top 6-month rate at 3.78% p.a
Drawback: limited branches in Malaysia, minimum deposit of RM10,000

Interest Rate: 3.78% p.a
Minimum Deposit:
RM10,000
Minimum Age Requirement: 18 years
Tenure: 6-month
Features:
1. Flexible period of investment from 1 month to 12 months.
2.Automatic renewal upon maturity.
3.Profit earned can be automatically credited into your Current Account and Saving Account.
4. Free Debit Card for convenient retail purchases with 0.5% cash transaction rebate.
5. Eligible for protection by PIDM.

Calculated Interest:

Affin Bank FD Plus3.78% p.a.
Deposit Amount6-month interest
RM10,000RM187.25
RM20,000 RM374.49
RM50,000 RM936.23
Affin Bank logo
Go to Affin Bank
Affin Bank’s FD Plus is the market leader here with 3.78% p.a. To enjoy the attractive interest rate, you are required to place a minimum of RM10,000 in Affin FD Plus and RM1,000 in your AFFINPLUS or Current or Savings Accounts.

Mach Fixed Deposit – competitive 6-month rate of 3.50% p.a.
Drawback: limited branches in Malaysia

Interest Rate: 3.50% p.a
Minimum Deposit:
RM 1,000
Minimum Age Requirement:
12 years
Tenure: 6-month
Features:
1. Online fixed deposit that allows partial withdrawals for placements of RM10,000 or more.
2. Make all FD placements via Hong Leong Connect or branches.

 

Calculated Interest:

Mach Fixed Deposit3.50% p.a.
Deposit Amount6-month interest
RM1,000RM17.35
RM20,000 RM346.99
RM50,000 RM867.47
mach by hong leong logo
Go to Mach by Hong Leong Bank
Mach FD from Mach by Hong Leong Bank offers the second highest rate for 6-month fixed deposit in market. This is an online FD account that allows partial withdrawals for placements of RM10,000 and above. Additionally, you can make all Mach fixed deposit placements through Hong Leong Connect or any of Mach branches.

The Best 9-month FD rates – up to 3.82% p.a

Affin Bank FD Plus – top 9-month rate at 3.82% p.a
Drawback: limited branches in Malaysia, minimum deposit of RM10,000

Interest Rate: 3.82% p.a
Minimum Deposit:
RM10,000
Minimum Age Requirement: 18 years
Tenure: 9-month
Features:
1. Flexible period of investment from 1 month to 12 months.
2.Automatic renewal upon maturity.
3.Profit earned can be automatically credited into your Current Account and Saving Account.
4. Free Debit Card for convenient retail purchases with 0.5% cash transaction rebate.
5. Eligible for protection by PIDM.
Calculated Interest:
Affin Bank FD Plus3.82% p.a.
Deposit Amount9-month interest
RM10,000RM285.15
RM20,000 RM570.31
RM50,000 RM1,425.77
Affin Bank logo
Go to Affin Bank
Once again, Affin Bank’s FD Plus is the market leader here with 3.82% p.a. To enjoy the attractive interest rate, you are required to place a minimum of RM10,000 in Affin FD Plus and RM1,000 in your AFFINPLUS or Current or Savings Accounts.



The Best 12-Month FD rates – up to 3.95 % p.a

BSN Fixed Deposit/Commodity Mudharabah – competitive 12-month rate of up to 3.95% p.a.
Drawback: Limited time Exclusive RinggitPlus offer

Interest Rate: 3.95% p.a
Minimum Deposit:
RM10,000
Minimum Age Requirement: 7
years
Tenure: 12-month
Features:
1. Win 99.99% Gold Bar and win free holiday trip to Korea. Ends 10th October 2014.
2. Open to Malaysian citizens as young as 7 years old
3. Deposit of RM10,000 and above will enjoy up to 3.95% p.a

Calculated Interest:

BSN Fixed Deposit/Commodity Mudharabah3.95% p.a.
Deposit Amount12-month interest
RM10,000RM395

BSN logo
Apply via RinggitPlus!
All you need is RM10,000 deposit to enjoy interest earnings of up to 3.95% p.a. Any Malaysian aged at least 7 years old can sign right up for this investment account – a great chance to get the younger generation into the habit of saving for the future. Again, as BSN is a coorperative bank, your deposits will be protected by the Malaysian Government under the Development of Financial Institution Act (DAFIA).

Extra: What if we said you could win a gold bar just by answering a simple question? All you have to do is apply for the BSN Fixed Deposit or CM deposit-i right now at RinggitPlus.com and also be in the running for BSN’s Cuti Cuti BSN promo where you can win a free holiday trip to Korea! Read more about the BSN and RinggitPlus promotion.

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Bank Rakyat Deposits Account-i – 12-month rate at 3.90% p.a
Drawback: no explicit guarantee from PIDM, only Ministry of Finance implicit guarantee

Interest Rate: 3.90% p.a
Minimum Deposit:
RM 500
Minimum Age Requirement: 18 years
Tenure: 12-month
Features: Bank Rakyat Deposits Account-i
1. Profit rate is paid higher than normal Savings Account
2. Deposit of more than RM500, profit is paid monthly
3. Automatic renewal
4. Deposit Certificates may be used as collateral for other Syariah-compliant financing

Calculated Interest:

Bank Rakyat Deposits Account-i 3.90% p.a.
Deposit Amount12 months interest
RM1,000 RM39.00
RM20,000 RM780.00
RM50,000 RM1,950.00
Go to Bank Rakyat
No surprises here, Bank Rakyat’s Deposits Account-i is the market leader with 3.90% p.a. However, once again, our main concern is with their PIDM status. As Bank Rakyat is a Cooperative Bank, they are not covered under this explicit guarantee, and you will only get implicit protection from the Ministry of Finance under the Development of Financial Institution Act (DAFIA).

Affin Bank FD Plus – competitive 12-month rate of 3.85% p.a., good if you don’t want Bank Rakyat
Drawback: limited branches in Malaysia, minimum deposit of RM10,000

Interest Rate: 3.85% p.a
Minimum Deposit:
RM10,000
Minimum Age Requirement:
18 years
Tenure: 12-month
Features:
1. Flexible period of investment from 1 month to 12 months.
2.Automatic renewal upon maturity.
3.Profit earned can be automatically credited into your Current Account and Saving Account.
4. Free Debit Card for convenient retail purchases with 0.5% cash transaction rebate.
5. Eligible for protection by PIDM.

Calculated Interest:

Affin Bank FD Plus3.85% p.a.
Deposit Amount12 months interest
RM10,000 RM385.00
RM20,000 RM770.00
RM50,000 RM1,925.00

Affin Bank logo
Go to Affin Bank
Affin Bank’s rate of 3.85% p.a marks the third highest place for 12-month fixed deposit in market. To enjoy the attractive interest rate, you are required to place a minimum of RM10,000 in Affin FD Plus and RM1,000 in your AFFINPLUS or Current or Savings Accounts.

Some additional points for the high flyers out there:

If you are a preferred or priority bank customer, you may receive higher rate than what’s advertised online or in branch. Furthermore, having a long standing relationship with a Bank also can give you more leverage over interest rate negotiations. Banks like to keep their existing preferred/premier customers happy and having a good history with your Relationship Manager can also give you more power in your discussions with them.

Final SaveMoney FD Rates tips

  1. Although rates are published, always ask to speak to someone in the bank to negotiate the interest rate (the higher the amount saved, the more leverage you have to grab a better deal!)
  2. Spread your savings of up to RM 250,000 per FDaccount to keep it extra safe.
  3. Keep scouting around for the highest FD rates (or keep checking us out!).
  4. And finally, start saving NOW. It’s never too early to start saving money!

Beware of the Dog

Only enter into an FD if you don’t need the whole lump sum within the fixed term. Look out for FDs that charges a penalty or fine for withdrawing money out before the end of the period, not just waiving the interest. Some FDs are not auto renewable which means going into the branch is the only way to extend your saving period.

There you go, thanks for reading our “Best FD Rates in Malaysia” article!

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