They offer higher rate because they are investment bank, not commercial bank.

The risk issue is different than ordinary commercial banks.
Investment bank is more vulnerable than ordinary commecial bank if there is something wrong with the financial market/crisis.
Also, capital base is totally different and there is huge gap between them.

Just to add one point
NID is not the same with FD.
FD is guaranteed until 60K by PIDM.
NID is not (If not mistaken)

This post has been edited by cherroy: Jul 26 2010, 12:19 AM

What does NID stand for?

just to add on, untill end of this year it is unlimited.

just currios guys, pidm 60k cap mean per cert 60k or per account 60k or perbank 60k cap.

Negotiable Instrument Of Deposit


Per bank

Anyway, the chance for any commercial or investment banks in Malaysia to fail is highly unlikely. Don't think you guys have to worry too much about that. How the banks are governed here are very different from USA.

MnM, means even we have 2 different account for fd is still cap at 60k ie: me 1 acc + 1 joint with wife? i know its unlikely bank in malaysia will fail, just to get more knowledge.

Gov is planning to revise the 60K to 250K, which they need to amend the PIDM act before it become effective.

anyway the 60K or 250K is not really per bank as islamic and non islamic deposits are insured separately.
for example if you open a savingsblah-i islamic and you have a non islamic current and checking account, both categories are insured independently for up to 60K.

aiyaa i think these guys ask for their comparative knowledge or "just to know" info only
it is good to know, does not always mean you’re worried about the bank as they have reserves in malaysia when you ask
just like when you're interested in a chick, you are damn sure you wanna kao her but you still wanna ask her how old she is just to know

Dear all who is intrested to know further, here ia a bit of explaination.

If a company (or any other entity) wants to raise money, the company has two options: 1) borrow from a commercial bank or 2) issue stock or bonds in the capital markets. In order to take advantage of the capital markets, the company or other entity needs an investment banker. The investment banker buys the company's stocks or bonds and then tries to resell them to interested investors (like mutual funds, pension funds, or individual investors). The process is called underwriting securities. The investment bank gives the issuing company needed funds, and takes on the risk of owning the securities. The investment bank also provides services such as setting up deals between merger and acquisition partners. The investment bank makes money on the later sale of these securities.

A commercial bank on the other hand is in business to do two main things: hold deposits and make loans. The commercial bank creates money by lending out deposits to individuals seeking a loan for some designated purpose (for example, a car loan or a loan to start a small business). The commercial bank also keeps deposits on hand for individuals wishing to use the money to make payments (like a checking account). The commercial bank makes profit by lending out to individuals and other entities and collecting payments from these borrowers for principal and interest. The risk for this activity mainly comes from NPL and cash flow balances. Some banks that the quite lenient in giving out loans facing more risk to those stingy bank.

If we did a little research, investment bank and commercial bank are interlinked. they need each other because of various reasons. being a bullish person myself, im quite positive of the merger between OSK-UOB or Hwang-DBS. Good investment bank, strong commercial bank, add a refreshing flavour to our boring choice. if i indeed have more than 500k, and if i am an extremely conservative person, i'll go and shop around for better FD rate between dis so called the merger of IB & CB.

FD is FD, NID is and investment instrument, so dont be confuse and plz dont talk if dunot know the real facts.
PIDM covers 100% of your deposits until end of 2010, not just 60k. after 2010, need to wait the BNM announcement. - dont gv wrong speculation.
so, we learnt a lot ya from dis forum???

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Added on July 27, 2010, 11:41 amMilesAndMore,

I think that your view is the same as mine. I met with lotsa rich people, they got more than like 20-200mil, more than half of the money they put in FD. for low end people, 10k-50k is consider a lot, but for this rich guys , it is like a hair on the whole head

and im really sick of people that always worry either banks will winding up or not, bankcrupt etc, hell, no need to worry bout that. if still worry, dont borrow money from bank, surrender all ur credit cards, and put money under the pillow. end of the story. be confident, and yes, i really hv confident with malaysia & singapore banks. we are the most politically stable in the region, economically develop, we blend welll with each other, and we are conservative in a sense of accepting influence from outside like US or Europe. Singapore is more open, but deep in their bone, they are like us, almost alike.

This post has been edited by anne1222: Jul 27 2010, 11:48 AM

Question answered! Thanks

This post has been edited by crest: Jul 30 2010, 09:46 AM

Nearly forget the temporarily measure of all deposit guaranteed until 2010.
It is a temporarily measure due to global financial crisis.
But 250K guaranteed has already being proposed. Just wait for green light for act amendment.
http://www.bnm.gov.my/documents/2010/Enhan...ection_FAQs.pdf

Btw, OSK-UOB is not from merger of OSK and UOB bank.
OSK-UOB is formed through JV between them, they are not resulted from merger between 2.
They are asset management company.

For investment banking, it is OSK investment bank. Not OSK-UOB.

So does Hwang-DBS. (previously Hwang and Yusoff)
They are more like partner/jv forming the company.
Not resulted from merger between them.

Yes, the worry of bank winding up is extremely low, generally we don't need worry about it. But this is good for everyone to know as well.
But 1998 crisis indeed put the country on the brink before, so does the whole banking industry.
Snce then, the financial condition is improved a lot and become more healthy now.

The average return per month is 2.905% for 4-month tenure. Please note that all the interest rates quoted are on per annum basis.

For RM10k, you'll get around RM96 when it matures.

if you have a minimal 200k for min 3 months, it is worth to look at citibank's citigold recent promo 2.75% + 3% cashback .

quoted by citibank
based on 200K:
- 10,000 into any investment account, including foreign currency FD.
- 152,000 (80% from 190,000) into 3 months FD (2.75% + Cashback Bonus of 3%),
- 38,000 (20% from 190,000) into Guard Savings-i/ Premium Checking with interest bearing for 3 months with 2.5% interest.

hey guys, recently i heard in radio about hong leong bank fixed deposit.

According to what i heard, they say this fixed deposit provide highest interest rate, no minimum amount, and no minimum duration.

Is this true? anyone aware about this? or i heard it wrongly?

RHB Bank is also having a promo :

http://www.rhb.com.my/whats_new/deposits/6months_fd/

Average rate for the 6 months would be 3.20% I believe....anyone have any experience with them?

I've been reading a lot on Fixed Deposit recently. Well, I have this new saving plan and i was comparing it with my FD. I personally think works better than Fixed Deposit. It pays an interest of 10% yearly. By the end of the saving period, you get to double your money. It's a long term investment though. I'm still seeking for opinions on this saving plan.

PM me to know more about the product.

Keep the plan yourself, if you want to be secretive about it.

A published 10% yield definitely not come from a guaranteed return without risk exposure to the financial market and considerable long commitment.

Question to all the expertise here regarding forex fd. I would like to know about forex NZD. Is the currency now in its average benchmark price? I concern about this because i aware about the currency crash everywhere especially in Euro and US. Will it be wise for me to put my saving of about NZD600K now for long term of 60 months or less because if not mistaken i read many times in this thread about forex fd the shorter the time in FD the higher the risk losing in currency exchange right? How about will it be wise for me to have the interest annually/quartely convert to MYR for my monthly usage or better have it reinvest?

This post has been edited by bubbl3t3a: Aug 13 2010, 07:42 PM

For foreign FD, here https://forum.lowyat.net/topic/512136/+360

If your scheme is aboveboard you can list out the details here.

Even ASB don't guarantee 10% annual interest.

Asking people to PM you for details just makes your scheme look shady.