You may work out this way:-

RM5000 x 2.5% divide 365 days x 30 or 31 days depending on the particular month



BTW, MBB & PBB have revised their FD rates today 13 July 2010 to 2.75% for 1 month

This post has been edited by nomen: Jul 13 2010, 07:07 PM

All the big banks give only 2.85% for 12-month FD placement. Affin Bank's 12-month FD yields the best at 3.30% and the second best in town are AMBank and RHB Bank at 3.10%.

This post has been edited by MilesAndMore: Jul 13 2010, 07:30 PM

nomen bro, thanks for the guide. glad u help. thanks a lot

milesandmore bro, the affin fd is normal or islamic banking?

one stupid question though, non muslim can open islamic account?

Normal one. The Islamic one also gives the same rate.


Sure you can. I had one with HSBC Amanah (HSBC). My current Islamic Savings Account is from AMIslamic Bank (AMBank).

This post has been edited by MilesAndMore: Jul 13 2010, 07:44 PM

milesandmore bro,

thanks for the clarification. it helps a lot

yah, i was kind of surprised that the rate for 1-3 months increase to 2.75% whereas MBB 12 months FD rate almost stagnant. Why is this so? Is it because they expect interest rates to drop in the near future or is a way to encourage spending or more like not encouraging longer term savings.

Anyway, RHB now have step interest rate like PBB for new funds. The effective rate for 6 months deposit is like 3.2% pa but need to deposit minimum RM50K.

I suppose they are doing so in order to increase their net interest margin.

By the way, there is however one big foreign bank that offer a higher interest rate at 3%. It is HSBC. Surprise surprise !!!!!!! HSBC has three types of Time Deposit products :
1. Conventional Time Deposit offered through HSBC
2. General Investment Account-i offered through HSBC Amanah
3. Term Deposit Account-i offered through HSBC Amanah

They are paying out 3% interest for 12-month FD placement for their Term Deposit Account-i. The other two types of Time Deposit products yield only 2.85% just like the rest of the big banks.

Greedy greedy banks.

As mentioned many time and expected, some banks widen their profit margin.

BLR up 0.25%, FD rate up range from 0.05 - 0.2%

It is especially disappointed on the 1 year rate, up from 2.7~2.8% to 2.85%.

So little man, I have already taken out all of my FD and throw them into REIT

I have a matured 3yrs FD.


Example -
Principal - RM10,000
Interest/yr - 4%
Tenture - 3Yrs

Bank calculation - (RM10,000 x 4%) x 3yrs + Principal = RM11,200 (When Matured)

Mine calculation - (RM10,000 x 104% x 104% x 104%) RM11,248.64 (When Matured)

Which one is the correct method? I find out strange when bank have this calcution.

your calculation is for 1 year tenure @4% pa renewed 3 times whilst bank's is for 3 year tenure @ 4% pa - 3- year tenure does not compound interest

Of course it is the bank's one. And ycs already explained the reason.

Thanks ycs & miles, i was not aware tenure FD does not go with compound interest.

to get the compounding effect, you should instead put 1yr fd and annual renewal (but this will lead to a lower annual deposit rate)

The rate is 2.85 now?

For the big banks ? Yes. That's the 12-month rate currently on offer.

no higher rate? Check most of them. 2.85 only. 5 years is like 3.++ but it is not compounded interest right?
Thank for your info..

I just came across Bank of China 1 year FD is 3.1%. The highest so far I came across.

http://www.bank-of-china.com/malaysia/

Only a few banks offer higher interest rate. All rates shown below are for 12-month placement and total placement not exceeding RM1 Million.
- EON Bank > 3.00%
- AmBank > 3.10% (still is 3.10% if your total placement is more than RM1 Million)
- RHB Bank > 3.10%
- Alliance Bank > 3.10%
- Affin Bank > 3.30%


Nope. Not many people will put in 5-year FD, by the way. Most people will invest only for 12-month. There is a penalty if you want to withdraw before it matures.


Has anyone successfully opened a savings account with them ? Deutsche Bank and Bank of America do offer Basic Savings Account but it is not opened to the general public. I wondered if it is the same with Bank of China

This post has been edited by MilesAndMore: Jul 16 2010, 03:55 PM

Wow. Thanks. Check on it already. Affin do offer 3.3% per year! wonder Is there terms and condition?

Early withdrawal will lose the interest only right? Have't try before.