yo guys...

anyone knows the highest FD rates available now?
At one time, probably 2 yrs ago, CIMB was having a promotion and offered 4.5% interest rate pa. So i was wondering now any khang thao to offer for FD?
anything higher than 3.7% will be good already...

do post it here if u have any info... thanks!

now only 4% applicable for FD for 60months. Best rates i found was EON.

The FD rates won't differ in large variance.

perhaps put in foreign FD can give much more diff.

[quote=yewkhuay,Jun 16 2008, 12:25 AM]
perhaps put in foreign FD can give much more diff.

[/quoti

Putting in foreign FD do attract more interest, for eg, NZ FD gives you close to 9% a year. However, do take note on the foreign exchange spread when you convert your foreign currency back to RM. It can cost you the whole interest earned

@Jean72,
Are U familiar at all with this 'Dual-Currency Deposit' banks seem to be offering? Am wondering how that works and should learn up about that; but forex is not something i'm too familiar with and it's quite volatile. I do foresee RMB to increase though *grins*

Anyhow, back to TS's topic. Banks have different promotions on FD every month or every 2 months so it's best to just check with the banks personally. Also, depending on the total amount, U might be able to negotiate with the bank for a little more interest.

AmBank senior saver plan...3.8% p.a. for 11 months period (don't ask me why 11 months). Overheard about this rate yesterday when I went to AmBank with my dad yesterday to do his FD thingee.

@jeff_ckf,
AmBank Senior Saver Plan? Er.. I assume one would need to be >55 to qualify?

Umm...definitely not 55 Coz my dad only 52...I think above 50? Lazy to dig out the details coz I am never a fan of FD unlike my dad

@kevyeoh,
UOB's current promotion gives up to 3.85% on 3-month FD. Also, U should take the initiative to check out the different promotions offered by the different banks as it changes from time to time instead of asking us here. Their 1-month FD rate is 3.65%

@jeff_ckf,
I think we should get back to the discussion topic.

a standard duration of 12 months give 3.7% currently. any higher than that got some T&C which differs from each bank. i think its quite safe to say u can park ur money in a senior citizens FD by asking ur parents to open acc. then u can get a bit higher rate.

Is there any hidden clause for such higher rate compared to other banks?

To add to this, I just checked with my dad just now before I headed for work and apparently Bank Rakyat is offering close to 4% for the senior savers FD... I think he said 3.9 or 3.95...pardon me...short term memory loss

@David83,
Yes there are some T&C - U need to check; I didn't read up on it cause I haf no intentions of moving my funds for now

Yes there is under Terms and Conditions link in very small print at the bottom.

Most certainly worth it if you are switching from another bank to them, but not sure if it's worth the hassle for everyone else.

are you sure?! don't talk koc here oh..

It only applied on new fund bring in to the banks aka transfer money from others to theirs. Existing money in the banks won't be able to enjoy higher rate.

Mostly and generally when banks offer higher rate than normal, they want fresh fund and new customers.

For UOB higher offer, you need to park 2,000 in saving account or open one (if don't have), before can enjoy the higher rate which is part of its T&C. Details can get from the brochure. My above statement is not absolute, check with their RM.

Cheers.

This post has been edited by cherroy: Jun 16 2008, 09:05 PM

so far i think CIMB one quite high for per month basis without hidden terms and conditions...3.25% per annum....put 1k minimum for 2 months can pay one free lunch or yamcha...

OCBC's current promotion on Time Deposit is giving 3.83% p.a for 3/6 months placement.

What is the minimum amount? Got any charges? OCBC got one near my house in taipan...maybe can pay them a visit...

@arsenal,
A lot of information is available online so if U took the time to check it out U wouldn't need to ask such questions. Of course there are T&C - primarily it'll have to be "new" funds from somewhere else being placed into the bank as what other forumers have mentioned above.

In saving U a trip to the bank [fuel expensive], U can get more information here

I believe MBB has the lowest rate in term of 1 to 3 months tenure.

As for the HSBC Bank ... here is the rates based on specific terms and conditions.

HSBC Interest Rates

Yes.

Basically Dual currency deposit allow you to choose which currency you want to pack with and you choose a rate, they call it "spot rate" and the local currency is called "based rate" (RM) - I might get the "terms" wrong, but the idea is there. It surely gives higher rate than normal time deposit.

So, let say u choose Sin as the other currency. The market value now is RM 1 = S$ 0.43. And you will allow to choose your preferred exchange rate. Then perhaps you choose RM 1 = S$ 0.46. U can choose your maturity period, let say, 2 weeks or 1 month. Upon the maturity period, if the market rate goes below your chosen rate, for eg, RM 1 = S$ 0.44, then you didn't get to convert. The FD rate will then be paid based on your based rate, which is RM. HOWEVER, if your rate is hit above your chosen rate, let's say RM 1 = S$ 0.48, then you get to convert. Not at S$0.48, but will be converted based on S$ 0.46 (ur chosen rate). Then the FD interest will be paid based on Singapore dollar.

So, is this good or not?

Con, normally they pay a much higher FD interest because you are exposing to foreign exchange loss. Higher risk higher return ma! So normally, ppl who opt for this, they are hoping that they don't get to convert so that they could enjoy higher FD rate that being paid based on their local currency.

However, what if you hit the point and you get converted to the foreign currency that you have no need for? Then likely when you covert back to your home based currecy, you might loss in term of currency exchange. DON"T forget you only get to convert based on your chosen rate and not the actual market rate. Perhaps should put in figure for you to have better understanding:-

Let's say you put in RM 10,000, your chosen currency is S$. So you choose 0.46 being the rate. When due (1 month later), S$ rate drop to RM1 = S$ 0.48. So, you HAVE to convert, but based on 0.46 and not 0.48. You are then given, let say 6% pa rate based on the exchanged currency:-

RM 10,000 * 0.46 = S$ 4,600.00 + 6% p.a interest = S$ 4623

If you needed convert back to RM , since S$ is of no use to you, so:-

S$ 4623 / 0.48 (the actual market rate) = RM 9631.25. See, you actually loss money!


This is very good if you do actually need to foreign currency, perhaps for overseas investment, perhaps for study loan...bra bra bra. But if you don't, you need to worry about the potential currency loss even the offered rate can be attractive by looking at it

Do check with the bank in details. The above is as per my understanding!

@Jean72,
That sure was a lengthy explanation but that's probably the gist of it. I ain't interested in dual currency FD for now so will find out more onli when I need to use it But thanks anyways

haha..have to. Is hard to explain it in short sentances.

Is can get quite confusion over the potential foreign currency loss...so, got to explain nicely. In case I bring you to holland ma....

@Jean72,
If U do bring me to holland, I'll make sure I don't get U holland potatoes; instead I get U Holland Windmills `k?

Ok. I got you

Is blar blar blar lah, not bra bra bra, <--- otherwise people think 'senget' already. Haha, just joking.

To add a point,

For those want to invest in DCI, mostly people already opt for to keep foreign currency FD one in the first place, so any converted currency is kept in foreign currency account/FD to take advantage of the higher yield compared to RM. That's why AUD and NZD are two most popular at the moment.

It is plain not wise to convert back as your case mentioned. If one doesn't intend to keep the foreign currency (if converted), then DCI is not a very good place to play with.

Nowadays, foreign currency FD is quite popular as people see it a way to diversify their asset particularly hedge against RM risk.

This post has been edited by cherroy: Jun 17 2008, 03:48 PM

@cherroy,
A lot of people are into it also because banks are promoting it pretty heavily.

thanks for the correction!

That's precisely wat i tell to say, if one have no intention to keep the foreign currency, then DCI can be risk.

It is advisable to go check with the respective bank on the terms and conditions before invest.

@Jean72,
Yup.. it's alwiz good to know exactly what ur getting urself into; esp when it comes to $

Tinkerbel, you are right. Bank officer might not necessary share with you all the details. I have a friend (in Singapore), losing money after converting. Best part was, she can't figure out why she loses since she is paid much higher interest as compared to normal time deposit.

@Jean72,
I never trust these officers cause at the end of the day, it's ur loss and not theirs and there's nothing they can do about their mistake! *gulps* I alwiz make it a point to find out as much as I can before I get into something. A couple of my friends call me 'anal' *sigh*

Yes, no doubt about it.
But I still see it is one of the good option for investment mainly because I did suffer because RM depreciation in 1997 crisis. A lot of people experienced the pain of 1997 will be more towards to hedge against RM risk which prior 1997, people have no awareness of it.

I don't see RM is or will be a strong currency for near future unless gov improve their budget deficit situation and sort out economy problems. Don't get me wrong, I don't said or see Rm will collapse either, just for diverisification purpose and spread the risk.

But I do agree, it is not wise to chase blindly for the high yield offered by the DCI. If want to invest in DCI, the first mind is to keep the targetted currency. If one doesn't want to keep one and will convert back (if converted), then DCI is not a right place to be.

This post has been edited by cherroy: Jun 17 2008, 04:06 PM

Is always a good idea to check with the bank in details...for eg, once it is matured, can you opt to roll it with the converted foreign currency? keep it in the bank by opening a foreign currency acc? or simply take out the cash in foreign currency.

It might sound silly to ask these questions..but is better to have clear understanding

To me, all investments are meant for good. We only need to know the pro and con and see are they suited to our investment objective

Yup.. use whatever facilities to our advantage

Yes, those converted currency can be put in Foreign currency FD account, for sure. You can also get or buy a remittance from the currency (for those want to send it to overseas), or if you wish to put in other banks forex account.
Nobody or less people want to take as cash, because normally for DCI minimum amount is 250K (for most banks), so you want to take 250k in cash?

In singapore, Standard Chartered, you can start as min as S$25k if i am not wrong. and hey, when i said cash, i meant put in current acc, not taking out as cash la

If U haf children going overseas to study, RM250k cash in AUD isn't too much but few people would haf so much funds readily available

oh, the current FD rate is 3.20% right?

few days ago, i found out tht my company managed to get 3.25%.

@vin_ann,
There is supposed to be fixed board rate issued but most banks do give promotional rates on short term FDs. 12 months FDs are really quite fixed.

The 'actual' fixed rate for 1-3 months FD = 3% though most of time U should be able to get them to give it to U a little higher.

Also, what'd U mean by 'ur company'? Do U work with a bank or was it some sort of a special arrangement meant for ur organisation?

This post has been edited by tinkerbel: Jun 17 2008, 05:08 PM

@ Tinkerbel,

ops. it's not my company. im just an employee here. according to my finance manager, big boss have negotiate with the bank to get the rate.

how to negotiate i dun know. im just joined last month.

@vin_ann,
So the rate is meant for Ur organisation, not staff members?

This post has been edited by tinkerbel: Jun 17 2008, 05:15 PM

tinkerbel,

if the fd exceeded certain amount or placed beyond certain tenure.. the rates are termed as 'negotiable'.

there's no magic trick here.. he's just trying to impress people.

@lwb,
Yeah... U do haf a point

let's see... 2 days ago i went to Ambank branch (JB) to open an account

I saw some flashy led wording flashing on their rate board.

FIXED DEPOSIT PROMOTION
1 MONTH 33.xx %

yeap.. 33% percent. Briefly asked the lady about it. She told me something like
'it is a UT + FD thingy, where u invest 1000 in UT, you are entitled to place 1000 in the FD and enjoy that promotional rate'

Erm, yeah.. something like that. Didn't bother to ask further.

@ed0gawa,
HmmM.. it should be dollar to dollar which means if want to put in RM100k in FD at that rate, will need to put in RM100k in UT too.

Erm.. yeah.. and i thought that was what i were trying to say .. ermm.. hmmm...

@ed0gawa,
33% p.a is relatively high... Am not sure if the bank is even allowed to do so. Anyhow I'm quite sure there's a cap limit to the promotion.

So, did U put any $ into the funds?

There must be terms and conditions attached and in the end the effective interest might be something else altogether But if this is genuine please let all of us know coz even 10% guaranteed I wana invest already

@jeff_ckf,
FD is guaranteed, UT isn't

CIMB is 3.25 % for 2 months period.

Nah, i dun even have enough to feed myself how am i going to feed a UT and FD?

Erm, well .. maybe tomorrow i can drop by to ask for more info if any of you are really interested....

@tinker :
Yeah it is HIGH.. otherwise i won't even bother to open my mouth and asked the lady about it ...

@ed0gawa,
hmmM..... U could check and share with us here. I ain't gonna be able to put $ in it so no point for me to get more info

But 30 odd percent wor Haha as usual I remain skeptical and yes I do know of such schemes but let's see what ed0gawa can find out

Yes please post back here if you do find out anything interesting

If the bank close shop, still guaranteed?

@jasontoh,
It's highly unlikely the bank will close shop - BNM won't allow that.

We never know what will happen

@jasontoh,
AhHh.. perhaps AmBank needs cash hence this promotion? *shockers*

For sure, it is UT + FD. You need to put 1: 1 ratio before it can give you that rate. Citi also has it, last time around.

Actually, if one calculated carefully, there is nothing to shout about as it is 33% pa for 1 month only and one off. 33% pa for 1 month translate into 2.75% only. On UT side, they are charging you 5% already. They still have 2.25% gain on their side.

For UT, one can get discount on commission normally if sum is relatively large (so far I encounter all major fund houses can give up to 2.xx% to 3% except PB and PM funds).

As it is possibe to reduce the commission charge from normally 5% to 2.xx% if one put relatively large sum in it. So this promotion is like, instead giving out discount on UT, they bundle it with FD, so no discount on commission on UT, but give you in the FD interest, which is good on their headlines advertising. In fact, it might be as same as getting discount on UT purchased.

This post has been edited by cherroy: Jun 20 2008, 11:18 AM

I want to ask if the foreign FD rate published in the following URL:

http://www.pbebank.com/en/en_content/perso.../fcfdrates.html

Especially 1-month to 3-month tenure, are they guaranteed? Will I lose my capital?

This post has been edited by David83: Jun 21 2008, 12:33 AM

@David83,
I don't think so unless the exchange is so bad U lose some when U convert back to local currency.

You don't think so is referring to which? The return is not guaranteed? The capital might lose?

There's no T & C published. I believe the forex rate won't be greatly swung in 1 month time.

@David83,
As in I don't think U'll lose the capital.

The published rate is the interest paid before or after the conversion?

What I meant is?

A. RM ---> AUS
B. FD for 1 month

The published rate is paid based on AUS or on RM (after converting back) upon maturity?

Anybody mind to explain?

I think you are confuse already.
For forex FD, it work like that.

30K RM -> 10K AUD

10K AUD get 7% interest (if interest is 7%), and auto renew until you want to cancel it, just like normal FD.

You 10K AUD will continue to grow (+ interest).

If you disregard the exchange rate then your 10K will grow as same as your RM FD.

So capital + interest rate in AUD is guaranteed.

But if you want change back to RM then different story, it depends of AUD rate with RM already, might lose some or gain more depend on the exchange rate between you entry rate and exist rate

cherroy, thanks for explaining.

Is there's any financial charge if withdrawing upon maturity?

The AUD exchange rate over the past 12-months has varied up to 12%. That could be your gain, or that could be your loss.

Right now, it's near its peak vs the MYR @ 3.13. The usual advice is not to buy high, but that would depend on how you view the AUD in the longer term.

There is no point in putting in the money if you intend to withdraw after a short period, as you will lose out on the buy/sell spread (you could see that as a charge) of about 2.5% regardless of the exchange rate. Unless you believe the AUD is going to go up rapidly in that period.

No, only is the spread of exhange rate.

Forex FD is meant for long term and asset diversification. You don't go in and out frequently as you might lose the exhange rate spread, although it might gain also if the particular currency appreciate.

1 AUD was around 2.7-2.8 around 2 months ago and now it's 3.1x so basically it's a gain right?

I always think about the same thing about Banks. If something that is too good to be true, there is always a hidden cost, fund/cash locking for certain period of time with penalty etc.

There is no such thing as Free lunch from banks, they are a bunch of smart guys that trying to take ur money out from ur pocket with market gimmicks such as high interest rate etc. The only way to gain benefit from them is to look into the loop holes in the campaign/ offer they introduced, swapping in and out in diff manner to benefit their offer with minimize costing involve. I always like to look into way to get their offer. Such as open acc to get the free gifts and ciao immediately another month.

This post has been edited by billytong: Jun 23 2008, 12:14 PM

Yes, so basically one gain arond 30 -40 cents from the AUD FD, translate ito around 15% while getting higher interest rate around 7%. So total gain compared to RM FD would be 15% + (7 - 3.7%, RM FD) + (interest rate x 15% gain on forex).

But if AUD is going down, then might be no gain and can be resulting in losses especially if one put in USD 2 years ago.

This post has been edited by cherroy: Jun 23 2008, 12:29 PM

This is the reason why some impose a penalty if your account is close soon after you open it

It might be interesting to watch the spread (ie. the difference between the selling and buying price. Remember you don't buy and sell currency at the same price. Usually if you buy a currency and then sell it immediately, you will lose some money, because the bank will always buy from you at a lower price than they will sell to you. This is another thing you have to consider. If the difference between the selling and buying prices (the spread) is 3%, then a FCFD that offers 8% will actually net you 5% (that's if the currency doesn't move at all.)

Different banks have different spreads, so that might be worth considering as well. Also with FC FDs you might be forced to exit at a bad time, ask them about that as well.

In order for an FC FD to work well, you must have :

(1) low spreads

(2) automatic, commission-free rollover

Then it might be a good deal (ie. your only risk is currency fluctuation.)

This post has been edited by wodenus: Jun 24 2008, 11:03 AM

Public Bank now offering 11.18% FD rate....

Term and Condition applied....

interested can contact me....

Sorry but why contact you when I can contact PB directly ?

One can ask for commission reduction aka the discount from the counter rate qouted if amount is substantial, like 30-50K and above.
Or
one can opt for DCI in order to convert at spot rate or more attractive rate.

Purely speculate on higher interest rate alone while not wish currency being converted or hold the particular currency, the foreign currency account/FD might not a good place to 'play with'. The main purposes of those foreign currency FD/account is meant for asset diversification and hedge against RM risk.

This post has been edited by cherroy: Jun 23 2008, 05:46 PM

Cos he/she is a banker for PB.... which have their own budget to hit

Btw, sorry for those interested in the Ambank 33% FD thingy, doesn't have the time to go down from my office and ask about it. I'll see what i can do in these 2 days.
Those foreign FD always looks delicious with their high rates.... maybe i should transfer to be a Personal Banker too to learn more about all those.. and their loopholes...

@ed0gawa,
I'm sure the promotion information is available on the AmBank website right? That should save U a trip

tinkerbel tinkerbel ...

Had a quick glance at ambg.com.my .... nothing there
Sometimes i just can't believe those people u know. They have a webbie, but never update them.. Geez...

@ed0gawa,
It's just too much coordination work but I definitely understand where ur coming from! *grins*

Don't need to go through lah,

The 33% one month FD, surely (99%) is 1:1 ratio of UT + FD condition. Want to bet? , 1 cup of teh tarik?

In Malaysia, most online service suck big time, people or lot of company don't pay serious attention on online stuff, most of emails won't get replied even you ask them in email form and seldom update on times, except a few.

This post has been edited by cherroy: Jun 23 2008, 08:43 PM

How it works then cherroy? Let's say I dump in 50k, 25k will go to FD earning 3.8% and the remaining 25k will earn??? The 33% is on what figure? The combined return of the 50k? Projected figure? The figure looks too good even for UT

I had posted once before, check it out. If you dump 50K, then 25K wil go to UT and other half 25K will go to 1 month FD of 33% pa that is not renewable, upon maturity of 1 month FD, the rate will back to normal rate, so you 'enjoy' 1 month only.

It is not as attractive as you think. See my below post.

This post has been edited by cherroy: Jun 23 2008, 08:50 PM

Ahh ok..I get it now. How about the FD after the one month though? Can I just withdraw it?

For sure, yes, the 1 month FD will be automatic renewed also generally, but only 3% (normal rate)


This post has been edited by cherroy: Jun 23 2008, 09:47 PM

@cherroy,
I'm quite sure ur right I ain't gonna bother much about it - I don't haf the $ anyways

this is y here is the so call Bolehland ma, else everything is up to our standard it's not Bolehland anymore.

for my experience, the website information is not sufficient, they will just put a general statement, then for details pls contact the nearest branch for more details or call in.

There are some offers that do not come with Penalty. or the penalty itself it far less than the gift worth. U just have to go back ur calculation and see whether it is worth it or not.

@billytong,
iYah... and what kind of free gift is worth that kind of inconvenience?!

This post has been edited by tinkerbel: Jun 24 2008, 10:58 AM

Yea indeed.. mostly they give out cheap trinkets. I've never seen a gift worthy of transfer yet.

@wodenus,
I didn't know banks gave out gifts for FD deposits [oK.. I do know, but those are for rather big amounts; Citibank & GPS] - speaking of which, U know anyone who wants to buy a GPS?! *grins*

Not one from GPS Bay lol Garmin is the king when it comes to GPS they're not giving away Garmins or I would have switched for sure

Also it's a gimmick, after one year your maps are not guaranteed to be accurate any more unless you subscribe



This post has been edited by wodenus: Jun 24 2008, 03:02 PM

@wodenus,
I haven't decided if I should take the GPS. Since the additional CitiGold account isn't under my name, I won't be able to qualify for the reward points instead *gulps*

Thought I should get the GPS and then sell it, even for RM300 also is $ mah