There you go.
couldnt have put it more aptly.

A person who will put all his 500mill in FD will never have 500mill in the first place.
unless of course if it comes from inheritance.
even then he is not worthy to be in the pool of genes.

Conveniently omitting the effect of inflation in your argument defeats all purpose.

---

Added on January 22, 2010, 12:37 pmI'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 do one do to get the 500mill in the first place?
got it from savings put ito FD?
Get real.

This post has been edited by duckaton: Jan 22 2010, 01:07 PM

Am just a student.



You might want to rephrase the sentence above as it contains absolutely no meaning. Anyway, i think i can get what were you trying to say.

For the record, i did not say putting all in FD/TD/CD is what i'll do if i had USD500 Million. It's a true example of other people with that kind of cash and he/she really did put all in FD/TD/CD.


Now you are getting all bumped up. Did i ever say i have USD500 Millions in the first place ? Did i say I got the USD500 Millions simply from earning interest from FD/TD/CD ?

And why would you ask such a question is a big mystery to me. In my last post,i was simply concurring with Cherroy's sentiment that whoever with USD500 Millions of FD won't be suffering from Insomnia. You suddenly launching your missiles are done totally out of the blue and totally missed their targets because there isn't one. As mentioned many times, everyone has different risk appetite. Some people just want to protect their wealth and get stable income every month.


I concur.

This post has been edited by MilesAndMore: Jan 22 2010, 03:02 PM

Every investment scheme has their advantage/disadvantage. Else why not all the banks close up their FD section?If you cannot see the benefits of FD, please don't stop others from doing that as well. A person with huge sum of money investing in FD may don't have time to research all the necessary information on investing in equity or other schemes. He can choose to enjoy fishing everyday with his money in FD which can last until his entire lifetime without worrying about the stock market like most of us.

Only today I realized that the minimum amount of RM1K can be put in FD for 2 months, previously it used to be 3 months..

Agree. Those who want higher return, they don't put in FD. But they need to bear the higher risk in other investment. In FD, can sleep soundly, but don't expect high return and in the long term definely not enough to keep up with inflation.

FD cannot hedge inflation, no doubt about it.
Other investment like UT, shares, or whatever, probably can hedge inflation risk, but come with losing the initial capital risk as well.

Take example, if one invested in S&P500 or Dow Jones index ETF or index fund 10 years ago. After a decade, those investors lose out to FD depositors, because S&P500 gain nothing after 10 years, while FD even at a paranoid 3%, after 10 years without calculated the compounded interest, means 30% return.

So FD win in this case.

Basically, FD is not as bad as many people taught although it is bad be in term of inflation hedge or return but if choosing the wrong investment target or the outcome is not favourable, FD can beat those investment target as well.
FD beat gold investment in 35 years period history. FD lose out big time to stock market over 20-30 years, but if one invested in wrong stock, one still lose out the FD return rate.

What I want to highlight is that there is no easy way to hedge inflation or search for higher return rate.

Those invested in Citigroup, AIG years ago and many many more some others stocks, they might say to you, if got chance back to future, they rather put the money in FD.

I am not pro or against FD. Just to say FD is totally bad somehow not quite right either as above example shown, FD does beat some investment as well, this is true and hard fact.

By the way, the current OPR stands at 2.00%.

Bad! bad! I was actually hedging for the interest rate to rise.

Is there any criteria to open an account in OCBC? What is the difference from a iQ Account as compared to other account type?

Now the highest fd rate is ambank, I think.

Hello FD Sifu,

I am planning to open a new FD account of 5K but I am confuse with the interest rates plan.

1 month FD interest rates 2.00% p.a. (min RM5000) and 2 months 2.05% p.a. (min RM1000), this I understand.

3 months above to 11 months FD rates is 2.10% p.a. (min RM1000).

The question is.., Why would anyone care to place FD for 4 months or up to 11 months just to get the same rates of 2.10% p.a. while we can get the same interest rates in 3 months FD offer? Any sifu care to explain a bit.. ahh??

This post has been edited by buysell: Feb 21 2010, 05:05 PM

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

Btw, I still prefer an all-time low interest as my current savings in banks stay at a low level.

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

The professionals are revising their prediction, so who am i not to ? Right ? Besides, it's a good news to me


I did. It's for a 3-month placement. I think the ads says a fresh capital of RM250k, right ?

good news good news!!! hahaha

I don't view them as professionals. They are followers instead. I do my own analysis. If I listen to them, I could have made a loss in investment.

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.

However, interest hike would affect my property loans which are currently based on BLR.


Correction to my previous post. It should be RM200k.

This post has been edited by winner: Feb 24 2010, 07:21 PM

It's a good deal from Citibank but Citibank Malaysia is a very pompous and arrogant bank unlike any other Citibank elsewhere ! Besides, Being a CitiGold Malaysia customer won't entitle you to much special privileges either such as instant fund transfer between your Citibank Malaysia account and overseas Citibank account such as Citibank USA (Citibank Malaysia is not included in this service).

I still do not get why they want to do a detail search on one who is interested to open a savings account with them. Why can't they just open an account and issue an ATM card right away to anyone who is interested to start a banking relationship with them just like any other banks in Malaysia

In their defense, not all locally based analysts were pessimistic. Only two financial institutions said they did not expect a hike in OPR this year.

If my memory serves me correctly, one of these two is UOB-Kay Hian. The rest told the media that a hike in OPR is almost a sure thing beginning in the 3rd quarter of this year.

CIMB Investment Bank, AmInvestment Bank, OCBC Bank and RHB Capital all predicted it could all happen as fast as in Jun this year. Should BNM raise the OPR next week, it means they are only off by a few months ... Anyway, fingers crossed

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.

And now, BNM has just announced an increase in OPR to 2.25%. I guess most of the banks will immediately increase BLR tomorrow but only slowly increase deposit interest rates. Consumers are always thn losers.

i am holding 80% of my net worth in cash/FDs now and probably for the next 1-2 years. i foresee there is double dip or asian asset buble crisis will happen in 2 years time. in the meantime, i am shopping for "special funding" if this happen and this will make my buying power increase 3-4 folds..

i am putting in FDs... nothing wrong man.. i know what i am doing..