so what's the best rate on town now? 1 yr FD btw

1. that's one method (counter application). alternatively soem bank offer online FD placement (eg maybank) that way you can just click your way to fd placement

2. when you apply for FD you can choose:
a. duration: one month? one year? (their rate differ and usually longer = higher)
b. action upon maturity: renew (ie reinvest) or credit to account
c. interest: add to principal (add to initial investment) or credit to account

I believe your question refers to (b). it's usually up to you (but PB seems to offer only renew)

3. yes. you'll lose interest but not principal.

Alternatively consider putting at less duration so you'll still earn interest (or wont lose). or consider some mutual fund which offers both interest and liquidity

hmm... some of them are capital growth some interest. depends on which you invest. yes?

hmm i always think the fund do have interest which obviously reflected in capital growth. okay i might be wrong (noob here)

thanks for correcting anyway