Minimum amount to secured a credit card is pretty standard for classic ones ...around 3k-5k ..if you want higher credit limit..you can put in more

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

FDs are yielding a return rate of less than 3% per annum at best.
That oso must pledge the tenure and min amount.

Mind you, the 3% is not enough to cover the current inflation rate.
This means your money will shrink in value all the time it is in FD.

Better place to put your money is like properties, high dividend yield stocks, low exposure unit trust, insurance etc etc.
Even the govt sukuk/1malaysia whatever bonds are giving 5%

There is an exception, however, FD is a safe place when you are over your retirement age and you want the safest and lowest risk.

OCBC used to give the best rate for both savings account and FD but not anymore now.

Even a 5 months tenure will yield bout 2.3% only which is freakingly low.

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.

High net worth as in: they already have a balanced portfolio.
They already have money in properties, Unit trust, stocks, cars, wifes, children abroad etc.

The rest of the "leftover" money they put in FD,
incase they want to take out fast for a holiday.

To preserve wealth by putting in FD is not a good idea.
unless, you are already wealth as you say "high net worth" waiting to retire type of guys.

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

FD is just part of the financial tools to manipulate your finance. you must combine FD with others financial tools in order to generate more wealth. Besides, how to manipulate FD with others financial tools is really subjective for different groups of people.

Some people would like the safest way to keep their money while they have others source of incomes which are having much better return. So that they don't lose focus on what they can do best with their limited time & energy.

This post has been edited by david888: Jan 20 2010, 09:21 AM

agree. Many people just cannot withstand the high risk of investments without losing sleeps for nights. Therefore, FD is their only means of investment while they can also get good sleep to stay healthy.

fd should be part and parcel in your core portfolio, while you can do more risky types of investment in your satellite portfolio....

They have 3 years, 5 years, 3.2%, 3.7% currently if not mistaken.

2.3% is considered high in international level currently. Most developed nation has zero interest rate except Aussia at 3.x%

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

Yup, I know, locally, in foreign currency FD, also offer around 5%.

I mean short term duration one.

the additional 2-3% is the currency risk

Doubt anyone would have USD500mill cash without any other investment.

If that fella have USD500mill in FD, it must be a standby cash waiting for other investment opportunity.
Or it must be loose change ie he has USD5bill in other investments.

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Added on January 20, 2010, 10:02 pmI would have sleepless nights if I have most of my money in FD.
It is losing its value everynight
I would be wide awake thinking of ways to make my money work harder.

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Added on January 20, 2010, 10:04 pmagreed. some money in FD is wise.
For if an investment opprtunity were to present itself, no money/cash no talk.

This post has been edited by duckaton: Jan 20 2010, 10:04 PM

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.

Everyone has different risk appetite and perception, so it does't matter if 500 millions is his/her sole asset class. The most importance is he/she know how to make and got the 500 million.

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

FD return might be low, but if a person has 500million in FD, at current 2% pa rate, he/she got extra 10 million to spend on every year. 10 million is still a big sum, although it might be eroded by inflation as time passed, but undeniable, he/she is way way way better than any working class or ordinary people out there, which ordinary people work whole life also cannot achieve the figure one.

Capital protection become more important than chasing for return, when the money is big time. That's why we see big money investment is always in US treasury bill.

When one has 10K, then we try to max out the return and willing to put the 10K in risk for high risk investment which if the investment doesn't work out, then lose the 10K
But when one have 10 million, do you try to max out the return and put the total 10 million in risky area?

No matter how, FD is always needed as standby, emergency purposes, or even enable one to invest and capture opportunity when it coming.
Just how one adjusted the ratio according to one's needs and risk appetite.

Just my 2 cents.

I couldn't agree more

500m USD.....u imaging u start 500 business with every business 1m USD...your company also very big already....Facebook start business with 500k USD only..if u got 500m USD i'm sure u can do something big to this world..

Set up another Nobel charity or return green to the earth...i believe u contribute much.
Should think about it ^^

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.