Mar 6 2010, 09:46 PM
QUOTE(buysell @ Feb 21 2010, 04:21 PM)
Hello FD Sifu,
I am planning to open a new FD account of 5K but I am confuse with the interest rates plan.
1 month FD interest rates 2.00% p.a. (min RM5000) and 2 months 2.05% p.a. (min RM1000), this I understand.
3 months above to 11 months FD rates is 2.10% p.a. (min RM1000).
The question is.., Why would anyone care to place FD for 4 months or up to 11 months just to get the same rates of 2.10% p.a. while we can get the same interest rates in 3 months FD offer? Any sifu care to explain a bit.. ahh?? 
Basically the table is not there to attract the customers but, to provide information on the interest rates for different terms.I am planning to open a new FD account of 5K but I am confuse with the interest rates plan.
1 month FD interest rates 2.00% p.a. (min RM5000) and 2 months 2.05% p.a. (min RM1000), this I understand.
3 months above to 11 months FD rates is 2.10% p.a. (min RM1000).
The question is.., Why would anyone care to place FD for 4 months or up to 11 months just to get the same rates of 2.10% p.a.
while we can get the same interest rates in 3 months FD offer? Any sifu care to explain a bit.. ahh?? It depends on the Banks, If they think the limit they are willing to take for 3-11 months FD is 2.1% that is all there is to it. But, what I can say to you is that the Banks is *nudging* you to take >12 months FD rate if you wants FD rates higher than 2.1%.
From another point of view, you have to remember FD rate changes from time to time. By taking 4-11 months FD rate of 2.1%. You locked on the 2.1% return and release yourself from the risk of FD rates going below 2.1% in the future ( depending on what term did you took).
I hope that answer your questions. Sorry if i didn't, terribly bad at explaining to others.
Cheers~
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