I believe 99.9999% of people sleep like a baby (instead sleepless) they have 500 million in FD. 

I'll bet you are working, trying to save every penny to put into FD
If it is, that is just pathetic.

Speak from real scenarios,
not what you will do if you have 500mill kind of scenario.

What will you do to get the 500mill in the first place?
You got it from savings put ito FD?
Get real.

The current investment industry have brainwashed us that holding cash and FD is very bad for you. The have mentioned over and over again and drilled in our brains that cash/FD is a deteriorating asset, which is slowly eaten up by inflation. They tell you that sitting on a load of cash or FD means that you do not know what you are doing, so they suggest to invest and invest no matter what is the state of the investments. They make it looks very easy to make lots of money by continuously investing in the long term.

If you are a patient long term investor, the holding in cash/FD is inversely proportional to the available to cheap investments. When good investment are not available, sitting on cash and FD is the best investment decision that you can make. Cash is usually most needed when you do not have them.

Having a load of cash/FD enables you to make opportunistic investment whenever you can find them. Cash/FD allows the investor to avoid selling a cheap investment to buy another cheap investment and also to take advantage of any special circumstances in which extremely good investments are available during a time of maximum pessimism.

So don't be suckered into thinking cash and FD is always bad for you, it is one of the most important investment strategy that you can employ. I myself use this strategy extensively.

KUALA LUMPUR, Feb 2 (Bernama) -- Standard Chartered Bank Malaysia Bhd has forecast the overnight policy rate (OPR) to gradually increase to 2.75 per cent by mid-2010, said managing director and chief executive officer Osman Morad.

Currently, interest rates stood at two per cent.

"We foresee a gradual rise in interest rates starting from the end of the first quarter this year," he told reporters after opening its newly-relocated branch at Bandar Puteri in Puchong Tuesday.

"I think Bank Negara has released their statement to make it very clear that they are concerned about growth and we will probably see a rise in OPR.(Based on) Our own internal forecast, we'll see a possible two to three increases," he added.

Meanwhile, Country Consumer Banking Head Tiew Siew Chuen said the bank hoped to upgrade, relocate and renovate 30 to 35 per cent of its premises over the next three years.

She said that it was part of the bank's efforts to focus on customers' needs and develop long-term relations with them by offering better banking experience.

Currently, the bank has 33 branches nationwide.

She said Standard Chartered Bank had lots of plans going forward to continuously upgrade its branches across Malaysia.

-- BERNAMA

Standard Chartered on Feb. 1 forecast policy makers will raise the benchmark interest rate three times this year, taking it to 2.75 percent from 2 percent. The bank, which predicts the first increase will be announced at a March 4 meeting, in November predicted just one tightening for 2010.


Source - Bloomberg

Now you finally agree that interest rate will go up sooner than expected.

On a different note, does anybody notice the advertisement by CitiGold on 5% interest for savings more than RM300k?

Correction to my previous post. It should be RM200k.

When Australia increased interest rate as well as Korea, Indonesia, China and India gave indication of interest increase few months ago, I had already predicted that Malaysia would take action in 2010. However, those locally based analysts still tried giving a feel-good factor saying interest rate in Malaysia would not increase througout the whole year of 2010. Now BNM has indicated an intention to move forward, and all those followers immediately pulled back their previous views.

No. In Dec 2009, none of the local banks expected interest hike. They only changed their mind early this year following BNM's indication to intend to increse OPR.

Guys, i saw news say Malaysia increase interest rate. Anyone know what is the FD % per month ? I no time to go bank.

This is more accurate.

http://www.ambg.com.my/promotions.asp?sc=p...ns_personal_018

It seems that the promotion was ended 28 Feb 2010. Pls call bank and see if they still having it.
You can opt for other tenure ma.

Yes, payable quarterly > Very sure as I got it.
Quarterly is 3 months la 

I click on the link and it didn't state that no penalty for early withdrawn which means you will lose your interest if you withdrawn early and 4 years for 3.6%, i would rather opt for other banks.

It did not state does not mean that they penalty you.

I asked and joined them 4 months ago. The manager said interest is payable quarterly. I was shocked that it is too good to be true. I questioned her back that if that is the case, I can withdraw early after interest is paid and will you charge back me the interest paid and penalty.

The answer is NO.

You do not have to go to the bank. You can just check for the latest rates on their website.

None of the banks have increased the interest rate for FD yet. The normal board rates offered for FD by banks in Malaysia are as follows :
- Total FD placement of up to RM1 Million (1-month to 12-month)
> 2.00% - 2.50%

- Total FD placement more than RM1 Million (1-month to 12-month)
> 1.50% - 2.20%

Which one is true. The answer I got was contrary with yours.

Update:

I called to AmOnline and talked to the CS. She told me no penalty for earlier withdrawn. Whatever interest you have earned and paid previously will not be claimed back from you.

I told her what you was told by someone and she confirmed with her supervisor again and the answer is the same. No.

for 1month, which bank offer the best?
CIMB 2.25% pa for 1month

It is the same with all other banks (normal board rates).

Those international banks have yet to update their fixed deposit interest rates up until this evening. Anyway, it looks like CIMB Bank and Public Bank 12-month fixed deposit placement for tier-1 customer yields the least at only 2.60% instead of 2.75% offered by other banks such as Maybank, Hong Leong Bank and Affin Bank.

What do Tier 1 and Tier 2 mean?

It is the same with all other banks (normal board rates).

Those international banks have yet to update their fixed deposit interest rates up until this evening. Anyway, it looks like CIMB Bank and Public Bank 12-month fixed deposit placement for tier-1 customer yields the least at only 2.60% instead of 2.75% offered by other banks such as Maybank, Hong Leong Bank and Affin Bank.

HSBC is another bank that offers only 2.60% for 12-month placement of time deposit, along with Public Bank and CIMB Bank.

I did invest in Maybank Fixed Maturity income fund, sort of like FD. End of the year they give 4.5%, the tenure is 3 years only.( I think this is a bit out of topic )

probably those banks offering only 2.6%pa are flushed with cash, or have alternative sources where they can get funds. thus not keen to attract more depositors.

for me, very simple, i'll just switch to other banks and will encourage everyone to do so.

anyway pbb has almost consistently offer the lowest rates for depositors, so no surprise there. their only "premium" all these years has been their "solid" image.

it is per annum or per month??...   as per 'mtsen' provide link is shown is per month ler..then PBB also shown in list as 1mth rate is 2.25%..how come they never mention as per annum??..

I taught it is 20K or no?

just to confirm tat..FD for 1mth rate is 2.25% PA.. means tat u have to take 2.25% divide to 12mths then only u got the figure of 1mth interest for ur FD total amount..:S kinda small like a sand.