FD are for losers, period.

There are many other places to put your money.

FDs are yielding a return rate of less than 3% per annum at best.
That oso must pledge the tenure and min amount.

Mind you, the 3% is not enough to cover the current inflation rate.
This means your money will shrink in value all the time it is in FD.

Better place to put your money is like properties, high dividend yield stocks, low exposure unit trust, insurance etc etc.
Even the govt sukuk/1malaysia whatever bonds are giving 5%

There is an exception, however, FD is a safe place when you are over your retirement age and you want the safest and lowest risk.

High net worth as in: they already have a balanced portfolio.
They already have money in properties, Unit trust, stocks, cars, wifes, children abroad etc.

The rest of the "leftover" money they put in FD,
incase they want to take out fast for a holiday.

To preserve wealth by putting in FD is not a good idea.
unless, you are already wealth as you say "high net worth" waiting to retire type of guys.

Doubt anyone would have USD500mill cash without any other investment.

If that fella have USD500mill in FD, it must be a standby cash waiting for other investment opportunity.
Or it must be loose change ie he has USD5bill in other investments.

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Added on January 20, 2010, 10:02 pmI would have sleepless nights if I have most of my money in FD.
It is losing its value everynight
I would be wide awake thinking of ways to make my money work harder.

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Added on January 20, 2010, 10:04 pmagreed. some money in FD is wise.
For if an investment opprtunity were to present itself, no money/cash no talk.

This post has been edited by duckaton: Jan 20 2010, 10:04 PM

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.

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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

I would prefer putting it on 9 months and make it auto-renew.
5 years is too long a time.

It's all in the news.

Haha, looks like you love going to the bank.
personally i think it is a waste of time.
not to mention you risk a parking ticket.

I hate going to the bank, most transactions are done online except when first opening the account.