Hi all,

EON bank is offering FDR + 1.25% while most others are offering BLR - 1.8%

At the moment, the effective rate are the same

What about long term ? Which is better ?

Does FDR increase same rate as BLR ?

FDR = Fixed Deposit Rate, means it is fixed and wont change. Which is better is depends on the country's economy.

Usually....
FDR + 1.25% = 2.5% + 1.25% = 3.75%
BLR - 1.8% = 5.55% - 1.8% = 3.75%
Depends on bank will +/- 0.05% on the above rates.

FDR and BLR will move together in tandem if BNM change the overnight bank rate (currently 2%). So.. both the same. . EON bank damm tricky in it's sales promotion.

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Added on February 3, 2010, 7:28 pmFDR do change with the BNM overnight policy rate. Nothing is fixed.

This post has been edited by gark: Feb 3 2010, 07:29 PM

isn't your question equals to,

EON Bank or all other banks?

Just in mind that BLR rise will benefit the banks.. Although FDR rise together with BLR,, it may not be as much as FDR rise equals bank lose money..

which one changes more frequent and which one tend to stay at lower % in history?

swt..hard to decide..

can anyone update us hows the fixed deposit rate has been in the past years?

BLR stays at averagely 8.23% for the past 23 years. as claimed by ING

This post has been edited by kbandito: Feb 3 2010, 11:46 PM

what about FD rate?

so conclusion, take FDR better or BLR type better ?

EON bank claimed FDR has been more stable comparing to BLR, well, imho, i guess there is no easy answer for this, it's all depends on whether u believe BLR or FDR would stay lower respectively, most of the time. good luck

This post has been edited by vdfoo: Feb 4 2010, 04:25 PM

IMHO, I feel that banks will raise the BLR almost instantly when Bank Negara decides to raise OPR. But the FDR will only raise slowly soon after, maybe weeks or a month later, or sometimes just as instantly (most probably for EON Bank).

Interest rates based on FDR is refreshingly NEW, i.e. no historical data to share and analyze. However, in the UK, as mentioned by Hocklai8, UK banks tend to revise the FULL change in rates on BLRs (for mortgages), and tend to gradually increase the FDR rates (usually 50% of the actual increased rate).

In general, please compare mortgage packages in its entire format, not FDR v BLR. Why not ask EON to provide you with the answers of BLR v FDR, and then ask a few rival banks to PROVIDE you with a similar answer.

Do keep us updated?!

no concrete answer yet

Hello all, I also came across this FDR+X% issue. I have concluded as follows:

1. FDR fluctuation is smaller than BLR. This is the fact.
2. When BLR change, FDR will also change. This is the fact and they will either be increase together or decrease together. It will not be 1 increase and the other decrease.
3. BLR is set by authority and follows by all Bank in Malaysia.
4. FDR is set by the Bank itself and it is solely under the hand of a Bank.

My questions is now, shall we leave our faith for the next 10 to 20 years in the hand of an individual organisation or follow a common guideline in the nation.
I believe the answer is very clear. Just like Ah Long, this month I can tell you the rate is 2.7, next month is 5 also can. It is not a restriction.

Knowing how banks work, I'd pick FDR, provided the FDR rate they allign the mortgage to is a mid rate ...........