why?

Withholding tax....

How old are you and have so much money ya?

i think withholding tax is only for company....?
how does it work?

if i put 1m in fd,i can get 3k per month after a year...

In any single of FD cert, must in less than 100k. Otherwise, the interest earned will be subject to withholding tax of 5%.

each person got limit 10 piece of FD certificate only?

if bonus for one year is rm33000 then 5% tax is rm1000+?

can i separate 1m to 10 FD certificate? <---- how it works?10 fd cert with single account?

What you need to buy is a Banker's Cheque. Once you buy the Banker's Cheque (Maybank charge RM5 if i'm not mistaken), deposit it into Affin Bank/Public Bank. When the Banker's Cheque is cleared which usually takes 1 - 2 working days, then go back to Affin Bank/Public Bank to open the FD account. You can ask them to separate it into 10 FD accounts or just put all into 1 FD account.


The withholding tax on interest earned from FD has long been abolished. Therefore, it is absolutely not necessary to divide your money into so many FD accounts.

Besides, when the withholding was still in place. People always divided their money into RM100k maximum per FD account to avoid the 5% withholding tax. So it was not less than RM100k.


Please refer to the post above.


Every banks have different rules. You should refer to your bank. As far as i am concerned, many people i know used to have more than 10 FD accounts at HSBC but not anymore. Not anymore since the 5% withholding tax was abolished anyway.


Since the 5% withholding tax had been abolished, you do not have to separate your RM1 Million into 10 FD certificates. Just put everything into one FD certificate. There is absolutely no tax to worry about.

This post has been edited by MilesAndMore: Aug 25 2010, 12:07 PM

Thanks for highlighting it. Long time didn't follow income tax and didn't realise it.

Currently RHB has a promotion for step FD rates that are better than other banks. Its for 6 months tenure and works out to an average of about 3.1%.
Stand chart has a FD promotion paying 5% but max is only for 100k. just log on to their websites to get more info.

Jess
http://www.howtobuyaninvestmentproperty.com

No need buy banker's cheque. Just ask MBB write RM1m cheque in your name, Then go Affin Bank and you can straight away with the RM1m cheque open a new FD account or multiple accounts with different tenure and or amount. No need wait 1-2 days for the cheque to clear.

Do we have to pay for the cheque ? I usually buy a banker's cheque from them when withdrawing my dividend earned from ASNB products and their banker's cheque is very expensive compared to Public Bank, CIMB Bank etc.

bros.. which bank offers highest interest rate ya?

Yah, nowadays the stupid banks charge few ringgit when ask them write cheque. Not sure about MBB but HLB charges RM3 for cheque if I recall correctly.

Agro Bank followed by Affin Bank.

bro, the witholding tax still applicable for oversea bank like uob... you all can rest assure with it on local bank...

Overseas bank like UOB Bank ? I think not. I am never a customer of UOB Bank so i am not sure why they told you otherwise. Anyway, major foreign players such HSBC, Standard Chartered and OCBC Bank told all of their customers that the 5% withholding tax had been abolished. The rule is regulated by LHDN and it shouldn't be any different for UOB Bank.

Hmm... i juz apply for a FD for my co. recently. The staffs (UOB) told me that the first FD should be lower than 1 mil to avoid the witholding tax, and the 2nd slip onward does not cap to the 1 million mark.

Anyway, i will get this clarify with the LHDN anytime soon and feedback to you all.

Oh ... it's the corporate one. May be that is why it is different. The 5% withholding tax that was abolished is the individual one.

Oh ok.

So, the 5% witholding tax for individual placement was abolished.

Anyway, for individiual to be safe or thinking forward, wise to place your FD less than RM1m or even less than RM100K as our flip flop government always changes policies and may go back to 5% witholding tax policy tomorrow.

This post has been edited by Gen-X: Aug 31 2010, 09:53 PM

Currently I have invested in HLB JUNIOR FD at 5% pa for the tenure of 4 years. So far so good .

This post has been edited by michaelho: Sep 28 2010, 07:14 PM