The published rate is 3.65% for 3 months. So you are getting 0.1% more ! Good deal !

http://www.bestinvestmentinmalaysia.com/an...income-builder/

Did managed to get some data from the link above if it is reliable.

HLA is bad if you opt for the GYI.

HLA is bearable if you opt for the accumulative option , however lock in maturity period is unbearable. Seems reference interest rate is roughly 3.9x% on the plus side some insurance.

HOWEVER dont shoot me, as just learning how to calculate for my own benefit only..
Its meant for simpleton who dont want to think much or do much..ha..haa

For me I choose to play musical chairs , as feel a free man without that long lock in period.

Guys, im kinda new to this FD. Would anyone share on the benefit of registering one FD and which bank give the best advantage based on your opinion. I have read somewhere in article that this FD is really useful especially for long term saving but sadly i am currently still doing some homework in making this FD benefit to the maximum as i can. Anyone mind to share with the newbie on this matter?

Saving plan is never a FD in the first place.
End of story.

owh. then how does this sytems works and i believes u guys are bending the system as maximum as the system allowed in getting the ROI of it. let say if im about to open one, what are the best option to choose the bank for and how long target of return should i opt for? sorry im just started to get the knowledge in this finance sector as im not from this background

This is not your normal bank bond like CIMB Innovative or PBB NIT issued few years back which are not refernced to any index. Which means you get the coupon rate fixed
6.8% and 7.2%, somewhere around there IINM., UNLESS the bank collapse.

This one is more like structured product and return is referenced to an index in this case KLIBOR.
The index out of range you may get ZERO return, ie no interest/dividend payment during that period.So you can get ZERO return even when the bank is not collapse!

Besides the return rate of 4.8% is poor for such a long period. You can safely get 4.7% guaranteed month after month irrespective of whatever index up or down, with 5 years FD at MBSB.


so to me , this one is a risky product, not good. i had similar experience some years back with this, end up getting very little only over 3 years, worse than FD!!

It is not a safe product! When the index went out of range bank no need to pay interest and it will keep it going without call back.

When index keep within range bank cannot tahan the payment, bank can easily play dirty by call back and return your investment.

This post has been edited by guy3288: Nov 23 2012, 11:39 PM

Bank Rakyat

rite, well explained.

cimb (and other banks) offer such intsruments all the time. mostly called frnid.

the last similar ones from cimb offered more than the indicative 4.8%.

last one from cimb was 5.2%, and before that, 5.6%. and as u correctly pointed out, they call back after 12-15 months! safe or not, hard to say... i guess nothing comes for free but with risks - a matter of u see it or not, risk appetite profile.

whatever, one thing is obvious - risk free deposit rates are trending down, not going up anytime soon.

any institution offering unusually high deposit rates, i get the shivers.

best to diversify. or if single type, spread over several banks...

This post has been edited by AVFAN: Nov 24 2012, 06:16 PM

Wow 4.11% for 12 months Why bother with FD Promos

Thanks a lot for reporting above

Bro, you got 3 free gifts some more, you're really a good negotiator

Everyone take note of above, make copy of you IC first before going to BR

Another good rate from BR. Thanks for reporting.

Thanks for reporting. updated 1st post.

thanks for reporting, updated 1st post.


Thanks for the tip Bro.


Just to add to above on Bank Rakyat deposits and "interest rates", BR "FD" dividend rate is not guaranteed but then again, which Islamic banking product does

And to see more FD promos and my comments click here to my Fixed Deposit Promotion Page at my blog.

Alliance Bank was offering similar product couple months back and OCBC was (not sure still on) offering similar investment scheme before I left for holiday about 2 weeks ago.

This post has been edited by Gen-X: Nov 24 2012, 06:53 PM

Invested in Public Bank structured product before. If not msaken it is 3 years 9 months. First year gave miseable coupon and subsequent 2nd and 3rd year zero coupon. Currently nav only 97+. You are right to say put into FD will probably get more return

Whoa! Bank Rakyat's FD rates are high because they find it difficult to secure funds as they are not covered under PIDM. Be careful ...remember the gold investment lures?

Yes, thank for the advice. i am kind of worry. MBSB, Bank Persatuan, Bank pembangunan, BSN, BANK MUAMALAT and Agrobank all under Koperasi and MOF, be careful. NO PIDM.

I smell sarcasm

I know this is slightly off the topic but with the FD gurus here, hope that you can help me with this.

Thinking of putting some $ in PRS (Private Retirement Scheme) which has just started this year. Why ?

Mainly because of the tax benefit.

Looking at PB's PRS, charges are :
* sales charge (3%, once off on purchase)
* annual fees (mgt (1%), trust (0.04%), admin (RM10)).

With A's 26% tax rate, his effective returns after 5 years will be :
* PRS with 0% pa return, => 4%
* PRS with 3% pa return, => 6%

(assuming he retires in 5 yrs, otherwise a 8% tax rate on early withdrawal).

Your view ?

Thanks.

P/S Yes, PRS has no capital guarantee or protection.

PP/S Compared to BR's rate for 5 yrs, then this PRS is about the same (with PRS's return at 3% pa).

This post has been edited by plumberly: Nov 26 2012, 02:45 PM

With bank and government advertiseemnt on PIDM protection, there is explanation from where and how PIDM get the money to protect the depositors money in the bank. PIDM gets the money from the members bank to join as the members and now they have included insurance company to pay the money yearly as well to be a member and claimed to the public it is PIDM protected. There is no financial reporting nor statement reported in the public on PIDM perform yearly and also no transparency on the mechanism on how it get the money to protect depositors.
I guessed this is another government "initiative" to collect money.

gsc,

Good point. I have been wondering wihat really is this PIDM, do banks pay to PIDM for the guarantee, how much, etc., etc.

Even with member banks paying for this service, I really doubt that the service fees will be sufficient to pay to the depositors if the bank(s) closes down. Maybe the final big brother at the end of the line is the govt to decide and bail out the troubled bank(s). Just my thought.

How much do banks pay for this PIDM service ? RM x million per bank per year ?

How much are depositors' total amount in a typical bank ? RM 100 million ? RM 1 billion ?

Something does not add up.

My 2 cents.

Where are these 4% and 6% derived from ?

aeiou,

Briefly, saving :
a. in tax is 3000*0.26 and put that in FD at 3 % pa
b. return after fees deduction for PRS zero and 3% return cases.

Cheerio.

P/S An idea just came to mind - a possible loophole with this PRS RM3000 tax deduction. Will find out more first. Ha.

What about the following year (second year)?

This morning drove pass HLB and saw a big banner on something like 12 months FD at 4.28%, anyone saw it too?

Edited: Ok it's a stepped up FD, I knew HLB won't offer such good offering

This post has been edited by Pink Spider: Nov 26 2012, 05:47 PM