For young people, I always believe in putting money into investment or savings plan from insurance company. I got one with me paying RM1400 interest p.a for RM10k deposit. Guaranteed interest till you reach 99 years old. Interest can withdraw yearly or roll over. Some what I'll be getting bonuses as well if I maintain the deposit for certain years.

One of the best option to replace FD cos the rate could easily hedge against inflation rate in Msia and also FD rate in banks.

Basically, its a FD savings plan involve no investment at all and interest are guaranteed. Hong Leong Assurance offer a skim like that. If you're interest to know more, you can PM me or call me for further details.

Ehem..ehem... as i only dealt with MLTA, i don't sell this product. I bought it. What am i doing now is putting aside RM5.5k per year for 6 years and getting interest of RM700 p.a(guaranteed). Interest i already opt to re-invest and compounding of 5.5%(not guaranteed) will be given. Lock for 6 years but however on the immediate 7th years if i withdraw, i will still get back my principal which i assume break even point on 7th years. If i don't withdraw, I may collect interest till I'm 90 years old + maturity bonus as well!

Even being a bank manager, you gotta wait til I wanna sell this plan, then I will surely open a thread with complete details and terms to get opinion from you guys sifu here.

Ooo.. Correction on terms being used in insurance not interest nor cash payment. Cash payment is when you buy things or pay for something. We term it as cash dividend.

Satisfied?

every individual have different preferences. I would say mainly depends on your lifestyle. Place money into FD and gain interest already have most flexibility. No risk at all.

On FD, every bank will pay you interest upon maturity. In the event premature cancellation will earn you partial interest. However, every bank have different baseline (amount of deposit) for special request such as monthly interest payout, quarterly payout partial withdrawal and etc. Simple to understand if you put FD 1 year and choose monthly or quarterly interest payout, bank will claw back interest if premature cancellation. Cos bank won't pay full interest if you premature withdraw. Example, citibank will pay half of interest rate if premature withdrawal (if 3% p.a, then will pay 1.5% p.a)
,
In terms of interest payout, you can choose to roll over with principal, pay by check or credit into savings or checking account.