RHB Bank Simply Rewarding Campaign – Current and Saving Account (CASA) Cash Rewards Review

RHB Simply Rewarding Campaign – CASA Cash Rewards (giving total interest of over 5% p.a. for 2 months) and Privilege to place 3-month FD at preferential rates (16 July – 31 October 2012)
Drawback: Rates reducing / Required deposit amounts go up with each day after 16 July that account is not opened, opening account on the 1st of August requires a minimum of RM12,622, 1st of September requires RM25,666 etc.; for FD, minimum 3-month FD placement of RM5,000 

Promotion Period : 16 July – 31 October 2012
Eligibility : All new and existing RHB Bank CASA account holders
Participating Account : All Current or Savings accounts of the RHB Bank but excludes RHB Junior Savings Account
Deposit Placement : All new funds only (not transferred from existing RHB accounts)
Other Terms and Conditions :
  • A Customer with multiple CASA is only required to register one of his/her accounts
  • Joint account holders will be treated as one account holder, the “Primary Account holder” will automatically be tracked for calculating incremental Average Balance
  • Incremental AB is defined as the growth in Participant’s CASA AB (minimum RM10,000) as at the end of the tracking on 30 September 2012 and 31 December 2012, as compared to “Baseline”
  • “Baseline” is defined as the Participant’s CASA AB as at 15 July 2012. For new customers, the Baseline will be zero
  • For 3-month FD Promotion, the minimum placement required is RM5,000 and 10% of the FD placement amount must be placed on hold for 90 days in CASA
Cash Reward Table :

CASA Average Balance Growth30-9-2012 (3 months)31-12-2012 (6 months)Total Cash Rewards
RM10,000 - RM19,999RM58.00RM68.00RM126.00
RM20,000 - RM49,999RM98.00RM138.00RM236.00
RM50,000 and aboveRM138.00RM388.00RM526.00

3-month FD Promotion Rates :
1st month – 3.08%
2nd month – 3.18%
3rd month – 3.48%
To participate :
  • Send an SMS to 36266 as: RHBCCR<space>14-digit CASA number (e.g. RHBCCR 11231234123414); or
  • Log on to www.rhb.com.my; or
  • Over the counter at any RHB branch
Go to RHB Bank
RHB Bank CASA cash rewards promotion supposedly gives you up to RM526 by opening or topping-up your existing Current and Saving Accounts with fresh funds, and maintaining an incremental average balance growth of RM10,000 and above for a minimum of 3 months and a maximum of 6 months starting from 15 July 2012. This gives you a cash back of RM126, RM236 and RM526 respectively as shown in the table above. All cash rewards will be credited into the Customer’s CASA which was first registered for this Campaign within 2 months after the relevant tracking period.
Example (given by the bank):

Jessica opened a new savings account in RHB on 16 July 2012 and deposited RM50,000 into her account and maintains the monies throughout the tracking periods ending 30 September and 31 December 2012. The first tracking period runs from 16 July to 30 September 2012 (77 days) whilst the second tracking period runs from 16 July to 31 December 2012 (169 days).
As such, the sum of total daily end balances in her account during the tracking period ending 30 September 2012 is = RM3,850,000. Her CASA AB is therefore = RM3,850,000 / 77 days = RM50,000; which means Customer A will be eligible for a RM138 Cash Reward.
For tracking periods ending 31 December 2012, the sum of total daily end balances in her account will be
RM8,450,000. Her CASA AB is therefore RM8,450,000 / 169 days = RM50,000; which means
Customer A will be eligible for an RM388 Cash Reward. So in total, Jessica can get RM526 cash rewards at the end of this promotion.
Promotion Review :
WARNING, the example above paints a rosy picture, but the promotion becomes less attractive with every day that passes that you don’t take it up. Why? The CASA ABs are calculated using July 16 as the reference date. This means that your total balance will always be divided by 77 days for the 30th September 2012 cutoff date and 169 days for the 31st December 2012 cutoff date. Regardless of when you open the account, to hit the RM10,000 ADB figure, your total sum of balances must be RM770,000 on 30th September to get RM58.

That means that if you opened the account on the 1st of August, your actual average balance must be RM12,622, and 1st of September it needs to be a whopping RM25,666! Still, a bonus is still a bonus, be sure to do the relevant calculations (we would say go for the RHB MaxCash at 2.78% p.a. as your CASA).

If you had gone on the 16th of July your effective rate would have been 5.56% p.a (thats 2.78% MaxCash + 2.78% effective rate of Rewards) over the 2.5 months, but the required deposit amount to get that rate is going up day by day. As of 9 August the required minimum deposit stands RM14,807, but the rate is still higher than any CASA and even any FD in the market for 2 months (at present), so still worth a go!

How do we get 5.56% p.a. above? Let say you opened the account today (9th of August), you need to deposit RM14,807.70 (this is RM770,000 / 52 days) to get the cash reward on 30th of September. According to the table above, you will get the RM58 cash reward as you maintain minimum RM10,000 average balance. You will get the effective rate of Reward of 2.78% p.a., you have to follow the formula below (its complicated!):

Effective interest rate (p.a.) of Cash Reward = {[1+(RM58 / RM14,807.70)] ^ (365 / 52 days)} – 1 = 2.78% p.a.

P/S: If you open the account in the following days, you just need to replace the figure for a higher initial deposit you need to put in, and how many days left from the initial deposit day up to 30th September and your eligible cash rewards.

FD Review: The privilege given to place a 3-month Fixed Deposit with RHB at the promotional rate of up to 3.48% actually only gives you an effective rate of 3.19% p.a., when taking into account the tiered rates as well as the 10% deposit into a CASA. See table below:
Promotional FD1st Month2nd Month3rd month3 months in RHB MaxCashTotal
Interest Rate (p.a.)3.08%3.18%3.48%2.75%3.19%
Deposit AmountRM4,500RM4,500RM4,500RM500RM5,000
Interest EarnedRM11.39RM11.75RM12.85RM3.40RM39.39
The rate is decent, but to see which banks beat that rate over 3 months check out our article on the best FD rates in Malaysia here for more information.

 

Promotion over or not what you are looking for? See our Best Current Accounts in Malaysia or our Best Savings Accounts in Malaysia article.

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