Some of the currently ongoing FD promotions.

RHB Bank


AMBank

Depends. Some people have RM200 million in a bank and the authority is not checking him/her. Usually these people are businessmen.

If you ask any lawyers or financial planners or even those people working inside banks, they will advice you to move your money overseas preferably in an offshore banking centre.

My dad knows a crook who was a Labuan born lawyer. He cheated other wealthy businessmen money through his fast food restaurant chain and a few other business plans in the 90s. He also worked with someone inside INNOSABAH to cheat his investors money. His investors sued him and he was later declared bankrupt and he could no longer practice law. But you know what ? He still drives a Mercedes-Benz and living in a big detached house in Kota Kinabalu ... This crook managed to moved all the money he stole to overseas before he was charged last time


Put your money in any local banks is definitely safe, be it a government linked company such as Maybank and CIMB Bank or complete privately held company such as Public Bank and Hong Leong Bank as long your money come from a proper source.

Many filthy rich people staying in Sabah make their money by smuggling beers, champagnes, tyres and a lot more from Labuan. These are not clean money and if they keep it in Malaysia and have many properties here then sooner or later someone from LHDN will go knock their doors. It is just a matter of time

I think the usual amount is around RM65,000+-, if my memory serves me correctly. But for now, PIDM will protect all our money in the bank until 31 December 2010.

You have nothing to worry though. No banks in Malaysia will go bankrupt. Not even the seriously ill Citibank. If you're still studying ask your Economics teacher to explain to you This was discussed briefly in Form 6 Macroeconomics.

Instead of being shut down completely, the bank will be taken over by some bigger, healthier rival. So if you have a loan you will have to pay back them back someday somehow

This post has been edited by MilesAndMore: Oct 20 2009, 10:57 PM

But from the information i gathered from CIMB BANK is a bit different. The promotional interest rate for senior FD for 1-month is 2.3% vs the 2.0% normal board rate. The T&C stated that the minimum deposit is RM50K and it must be fresh funds from other bank.

They need it badly. It is still lagging behind PBB in terms of total deposit base despite being much bigger than PBB


For tier-1 12-month board rate, yes.

Say that you go for a 1-month contract, RM10k will give you back around RM17.50 only.


Only if the rate is higher. I usually only either go for 1-month or 12-month only. You can choose for 1-month and opt for automatic renewal. This way it is more flexible and you won't loss much in interest in case you need to cash out the money before it matures.

No. The minimum placement for 2 months and above is only RM1000. For 1 month tenure, the minimum investment is RM5000.

2% for 1-month and 2.5% for 12-month. Rates are slightly lower if your total placement is more then RM1 million.


It depends on your maturity instruction. Some prefer to withdraw the interest earned while some will choose to reinvest the initial capital + interest earned.


Should use 2% as hivemy was asking for monthly FD. By the way, banks usually calculate the interest based on 365 days (1-year) and 30 days (1 month).

This post has been edited by MilesAndMore: Dec 10 2009, 04:47 PM

Did you not read the newspaper in the last one year ? All the central banks around the world lowered down the key interest rate/overnight policy rate in late 2008/early 2009(whatever they call in their respective countries) to encourage spending and people getting loan from banks.

Anyway, you can expect our Bank Negara to gradually increasing the OPR starting in the fourth quarter of this year.

It is a lot more than just 200 - 800 Billion Ringgit

The bottom line is that everyone has different risk tolerance. Anyone willing to take the risk will obviously look into other investments that can potentially yield better returns. Those who just want stable extra income will simply put their money in the very flexible FD which you can withdraw anytime you want.

RM182 Billion in deposit actually include the deposits they have in their overseas operation such as Public Bank Hong Kong and Public Bank Cambodia. As for Public Bank Malaysia, the total deposit as of September 2009 is around RM147 Billion and that includes the deposit they have in both savings and current accounts, not just FD.

Malayan Banking Berhad has around RM212 Billion of deposit as of 2009. Their operation in Malaysia (Maybank Malaysia) alone has around RM163 Billion. A huge amount of these money are actually in Maybank Malaysia and Public Bank Malaysia non-interest bearing current accounts. So i believe the total FD in the 9 Malaysian anchor banks should be less than RM1 Trillion but more than RM500 Billion. Either way, that is still a lot of FD.

This post has been edited by MilesAndMore: Jan 14 2010, 12:57 PM

Couldn't agree more

Yes. That is true. Many banks are offering such credit facility such as Public Bank, AmBank etc.


Yes. This was raised many times in the dedicated credit card thread.



I have


Not really sure if Hong Leong Bank is offering credit card secured by FD but other banks such as Public Bank and AmBank certainly have. I think EON Bank too, has credit card secured by FD.

Mine is not from Public Bank. I've been very active in the credit card thread since i joined this site. Many know which bank i got my secured credit card from and many of them are aware of such facility.

Public Bank as far as i am concerned, is the only bank in Malaysia publicly saying that we can apply for a credit card pledged by FD. However, in actual fact, many other banks do offer credit card secured by FD too. I've heard people successfully getting a Public Bank Gold credit card with RM10,000 of FD. So i believe RM5,000 will get you a Public Bank Classic credit card. Read the information below quoted from Public Bank website.



However, please note that there is one catch to this secured credit card by FD. Let say you cancel your credit card this month (January), you won't be able to cancel the FD account you used to pledge for the credit card facility until about two months later. This is because the bank wants to make sure you have cleared every single cent before they release your FD.

Different banks different rules. Public Bank is the only bank publicly saying credit line assigned will be to a ratio of 1:1. HSBC which also offers secured credit card offers only 80% of the total amount of FD pledged as credit line. However if i'm not mistaken, the secured credit card by HSBC is only available to select HSBC clients.

This post has been edited by MilesAndMore: Jan 15 2010, 02:14 PM

It all differs on the individual. For those ultra high net worth individuals, FD is good enough because they just want to preserve their wealth.

Not exactly only apply to retirees. As mentioned in my post earlier, ultra high net worth invidual such as those with US$500 Millions of cash

The interest rate for AUD for 12-month is hitting 6% in Australia and around 4% - 5% in offshore banking centre.

No. That fella just wants a stable income and it is a piece of cake with USD500 Millions of cash. USD FD/TD/CD doesn't yield much return now but still that fella has all his money in FD/TD/CD. What the fella does is he diversifies his FD/TD/CD into several different currencies. That fella also plays dual currency investment once in a while.