Hi guys, I am new to investments in terms of fixed deposit. I have two fixed deposits right now but I always get confused about the terms.

For instance, if i get 3.4 % in 3 months and 3.5 % in 6 months. Does this mean the long term is always better?

But if I finish my 3 months fixed and turnover to another 3 months..I will get a higher profit of 3.4 % plus the 2nd 3.4% correct? If this is so,,,why do banks offer a long term but shorter interest rate compared to the two shorter terms added together?

remember interest rage is per annumn 3.4/12*3month+3.4/12*3 month or 3.5/12*6month do the math

3.4 % in 3 months

3.4/12*3month+3.4/12*3 month

RM 10000 x 0.034 x3/12 = RM85 (interest for first 3 mth)
RM10085 x 0.034 x3/12 = RM 85.72
Total interest earned = RM170.72

3.5 % in 6 months.

RM 10000 x 0.035 x6/12 = RM175 (interest for 6 mth)

So which would be better:

Fixed Deposit
5.70% p.a.fixed for 5 months

or

Savings
6.50% p.a. variable( cannot withdraw each month or the next month's interest will be forfeited.)

Thanks.

Went to HLB today, but can't remember the exact FD Promo tenures as it did not interest me because need to deposit some funds into CASA

Two rates 3.6% and 3.7% if not mistaken for 12 and 24 months respectively.

For deposit up to RM499,999, need to deposit 10% equivalent into CASA
For above RM500K, beed to deposit RM50K into CASA.

Better just go with UOB 12 months at 3.7% no need deposit a sen into CASA.

Fixed Deposit
5.70% p.a.fixed for 5 months.

Savings
6.50% p.a. variable for 5 mths + (6.5% p.a. variable for 7 mths)

figure out yourself which is better.

where to get such high rate?

Australia FD?

Not sure bro, that's why I'm asking advice.

the OCBC promo is finishing soon and where to next??

Yup Australia FD, currently I have put few thousand in the 6.50 variable with great interest,,,one month around 50 bucks AUD plus.

However I am looking into the FD... so need some advice on this.

UOB 3.7% perhaps but is for 1 year.

I got strong feeling OCBC will come out with equally competitive rates since UOB and HLB got promo. Only thing is mah fan, must transfer in and out

which bank?

Earlier saw OCBC got promotion on foreign FD

Foreign currency FD like AUD offers an attractive interest rate but if we place an AUD FD, it is actually an investment. It is just similar to buying a currency pair AUD/MYR. If AUD appreciates when you FD is mature, then you'll earn interest plus exchange gain but if AUD falls then, your interest might not enough to cover the exchange loss and end up a loss.

Right now AUD has reached 10 years highest against MYR according to the chart. It might continue to rise but it left a lot of space to fall. So, I think the risk of AUD FD is higher now. Some more, the local banks charge very high spread. The currency spread alone already wipe up 2% to 3% of your interest depending on which bank you deal with.

It is better to do carry trade in Forex market if you like to invest in foreign currency for interest. The spread is far lowest and every broker offers leverage.

mah fan only 4 times a year besides its nice to see new faces

Please do not include this into the FD discussion. It is totally different with FD issue.
Mind that, forex trading and leverage is illegal in Malaysia apart from done BNM certified banks and finance institution/brokers.

AUD FD remains as FD, just like one needs some AUD for the future, and never consider to change back, the foreign currency exchange risk for AUD FD is out of window already.
Placing foreign currency FD means you wish to have the currency or wish to place the money in foreign currency, it is not solely to gain the interest spread alone.

Sure there are many people out there just like to place foreign currency FD for solely making more money. Using money to make more money, who doesn't love to do it. It is happy to see our money grows. You cannot assume everyone who place foreign FD just because they will need the currency for future use or for study purposes only.

I was trying to tell a little more about the foreign FD. Placing FD is really no different than buying the currency pair AUD/MYR. The spread alone will cost you to 2 to 3%. The currencies are highly volatile. Placing foreign FD in a wrong time could end up a loss and the bank might advise to renew your FD for another year. This simply tied up your money.

People work hard and save money and hope to get more from saving.

Yes, no local brokers offer forex trading and it is illegal to trade forex with any local hiding companies that offer the service. But do you know that we can open an account directly with the US legal and license forex broker using the Internet and fund with credit card right away. Who cares it is legal and not legal then since the broker is in US.

Yes, foreign currency FD subjected to currency exchange risk, no doubt,
but primary reason to place the foreign currency FD is about want to park the money in those currency, whether needed for it or diversification purpose. Solely want to earn extra 1-2% higher rate, my advise is always it may not suit.

While there are way to get AUD/RM or currency pair at spot rate through DCI, not necessary 2-3% spread, also one get request for lower spread like 1% or so, if one invests substantial amount as well.

For Forex trading, it is illegal for anyone (without BNM approval) to do forex trading in Malaysia. End of story.
What I mentioned previously, please do not bring in this issue into FD thread, it is totally different story with FD all together. It is irresponsible to recommend forex trading (it is illegal in the first place) as we may have many uninformed forumer that may look into this advice.
Who care?
Money being frozen, burned or being scammed time, nobody care. Ya, correct.

Last time I read in HLB site and they give their special preferential rate for AUD FD, this special preferential rate is even more than 2.5% of spread.

For the forex, as you say, no one should trade forex in Malaysia.

Scam money?

I was actually talking about those real and licensed Forex brokers in US that we can open an account through the Internet. These forex brokers were regulated by a US organisation just like share brokers here were regulated by KLSE. They are reputable. No the types of forex scams you think of.

Hi guys, just want to voice my 2 cents on this...
ya I personally tried FX before but no more...didn't know it is illegal...if so, will invest on something else..

Frankly, before I go for 4% FD with ocbc in Jan this year, I was toying the idea to place my money into AUD FD, but after counting the spread, not much gain as compare to local FD...(of course if your timing is right, then diff story). If there is a separate thread talks about this, please put a link here, I am interested too. Can diversify my investment a bit.

I am in PCI (Premier Currency Investment) for the past 3 years with SCB, similar like DCI cherroy mentioned, it is an interesting product which yield rather well, but it is OT to discuss here... Is there a thread on this?

The OCBC FD promotion offer can say to be very good one since there is no risk.

You might consider starting a new thread on the subject of currency investment like PCI, then people who are interested may start posting and discussing.