Got an FD due in the next few weeks. So need a parking house to put the $, hopefully at higher rate than the normal rate.

Reading in this thread, got some useful infor. Most attractive one for me is OPCBC but unfortunately, no OCBC in my town.

So, next best one is UOB or HL at 3.6%.

If you know of better ones, please let me know.

Thanks to GEN-X for his up to date and useful infor. Keep it up !

Cheerio.

Human Nature,

Noted and many thanks !

GEN-X,

One will be due by early next week and another one in 2 months time.

Please clarify why family member opens an a/c first and then he/she introduces me to the bank ?

Cheerio.

Keen to try BR for the higher rate. But was worried about the non PIDM status. Thus enquired at BR. Reply is as below.

"Kindly be informed that all commercial banks licensed under the Banking and Financial Institutions Act 1989 and all Islamic banks licensed under the Islamic Banking Act 1983, including foreign banks operating in Malaysia, are member institutions of PIDM. Membership is compulsory as provided under Akta Perbadanan Insurans Deposit Malaysia. However, Bank Rakyat under Cooperative Bank not compulsory to become PIDM membership because as provided under Development of Financial Institution Act (DAFIA) and Malaysia government. All depositors at Bank Rakyat will be protected by Malaysia government under Ministry of Finance. "

Sounds good enough for me to switch over to BR. Your view ?

Sorry, I am "new" to this. What is RM ? I have FDs with many banks like AmBank, PB, HL etc. No encounter with this RM kind yet. Ha.

Appreciate your help if I can get more and better return via this RM from my FDs.

Thanks.

magika,

Noted and thanks.

Just finished reading this V3, took me the whole morning in between things.

Very informative. Did not know that we are entitled to the extra FD interest if the mature date is on the weekend.

I have one FD with HL due on Fri and the counter lady suggested that I wait for a day later to withdraw as it takes some time for their computer system to update. Captain Gen X used Malboro cigarette as the value yardstick but I don't smoke. So I use durain as my value yardstick. Each day lost in FD interest = few good D26 durains for me. I think I will insist that I get $ on the mature date.

Cheerio.

Sorry for not being clear here.

few good D26 durians = 2 smallest D26 durians < RM10

She told me to come back on xth, not knowing that xth is a Saturday. I did not know till I checked on my return.

---

Added on September 13, 2012, 7:53 pmgsc,

Noted and thanks.

Cheerio



This post has been edited by plumberly: Sep 13 2012, 07:54 PM

Sifus,

Speaking my mind on the FD rate, I am interested to know whether the rate will be higher, same or lower in the next 5-10 yrs. My lay-person view is, it will increase. Why ? As economy recovers later, OPR will increase and thus FD rate as well. OPR's increase to dampen the inflation as economy picks up pace.

I was tidying up my FDs last night (mostly in MB eFD and AmB) to sort the mature dates so that I can then switch to better FD rates. Asking myself, get 1, 3, 6 or 9 months term or year term ? Thus this thread to all the sifus.

I know different people have different needs. But appreciate your view on future FD rate and the reason behind it. Want to have different views to avoid tunnel vision in my head.

Cheerio.

P/S Thanks for opening my eyes on this PB thing and other tips. Wish I knew about these earlier.

This post has been edited by plumberly: Sep 15 2012, 10:10 AM

Yes, thanks. Can't say it is a typo as P and B are so far apart on the keyboard ! Ha.

Nearly forgot about this 11% FD thing at MB. Saw that one a few weeks ago. Golden retirement related.

0% for the first 5 yrs and 11 % from 6th to 15th years. Interest is yearly after the 5th year at 11% of original principal. Check the web for more infor.

My quick analysis says this package (yearly interest is reinvested separately) is about the same as 5% FD at the end of 15 years.

Wanted to show the comparison chart here but don't know to add the graph.

Food for thought.

gsc,

Thanks. Emailed to my sister who works for a bank. She says the same thing about the lower FD rate trend now. Glad that I have decided on the 4.5% FD for 4 yrs in 2010. Ha.

Thanks for the infor on MBSB 4.7%. Will check it out. But don't know whether we have MBSB here. Big problem living in a small town.

While not trying to be right with the future FD rate trend all the time, my aim is to be 75% right and thus more FD $ for my durians. Still have not tried the infamous Musang Wan durian yet !

My lay-man's view :

* FD rate is now on the decline, inferring that the banks expect a drop in the OPR in the next 12-24 months.
* Local economy is not over-heating that requires govt to increase OPR to "cool" down the markets. Thus no change to the OPR lately.
* But govt wants to dampen the property market with a higher interest rate. Interest rate has an impact on other sectors as well and govt may opt for other instruments specifically on the property market, e.g. higher RPGT, lower allowable bank loan %, etc etc. I think govt will go for this route. Wait for the Budget 2013 and see.
* When will global economy recover ? It has been since 2008, 4 years now. Lasting 2-3 years was my initial thought. My view is, the QE thing is just dragging the problem and not solving the root cause of the problem. A new QE3 has just being announced (US election related ?) and may see signs of "recovery" with higher share indexes around the globe.
* My look forward - another global crash in 2013 and hopefully this will be the start of our real recovery. OPR on the increasing trend from 2015 onwards.

I am not an econmist, accountant, financial planner etc etc. Just an engineer. The economy outside is much more complicated than 1+1 = 2. I may be 100% off the track and so please read it with 1 kg of salt. Ha.

Moderator, if this discussion is not allowed in this thread, please let me know. Thanks.

My 3.8 cents.

Cheerio.

gark,

Noted and thanks.

Agree with your OPR & economy relationship. One thing I was having problem in understanding was the very high FD rate (12 or 16%) in 1998 period. Maybe the hand that pushed the high FD rate was the currency exchange issues due to the currency crisis in ASEAN then.

Any view (good and bad) on MBBS and other building societies for the FD growing platform ? Know that they are not covered by PIDM.

Cheerio.

This post has been edited by plumberly: Sep 17 2012, 11:26 AM

gark,

Many thanks ! An expert and a wise man indeed !

Trying to read Economics In One Lesson to understand better how it works but find it hard to digest. I do have problem in reading books by British authors. Easier to read books by American authors.

Appreciate if you could recommend 3 books on economy/stock/wealth building.

Many thanks.

I returned from overseas and started working here in the 1990's. Thought I remember the high FD rate during that period.

Maybe you are right on the timing. Need to take more Chicken Essence now to improve my memory. Ha.

Cheerio.

GEN-X,

Noted and thanks.

Case closed. Ha.

"Business loans dip" says today's The Star.

What can we infer from that w.r.t. future FD rates ?

Maybe what we are seeing now with the lower FD rates was the result of the decline in business loans some months ago.

My look ahead then is to go for the longer terms FD rather than 1 - 3 months.

Your view ?

aeiou,

Thanks for the graphs. I like collecting graphs like those.

Good point on the short term FD for the spending spree.

I take a long time to analyse and decide on big investments. So, 6 - 12 months FD still suit me, giving me time to decide. Market will take some time to recover and getting in on the recovery up trend is still OK w.r.t. medium and long term investments, in my view.

Cheerio.

Went to get my first FD with BR this afternoon. Was quite an eventful outing for me.

Took me some time to find BR. Asked for direction but found Bank Islam. Found it at the place I have passed by at least a few hundred times in the past. Guess I need to OPEN my eyes when I go outside from now on !

* There were 2 elderly Chinese ladies opening the FD before me. Took them a long time (communication problem I think). Was going to get FD for a year but after the long wait, decided to go for 2 years to make it worth my time ! Ha. @ 4.2% Used the earmark $ from another FD for this FD. Small amount but happy to see from the very low interest (earmark) to now 4.2% ! Ha.

* Normally I would just sign when asked with a simple check but after following this thread, decided to check the interest calculation form which I have to sign (BR has a different work flow than other banks). Noted that something was not right with their calculated interest as I expected compound interest for the 2 years. Asked the lady whether their FD was compound interest type. Gave me the impression that she does not know what is compound interest. Decided to accept the non-compounded interest. They did not state that it is compound interest anyway.

* No mention of referral in the application form. So, can't put GEN-X in there. I know I need your name & saving account number.

* Got a nice gift from BR (manicure set) with the FD.

* When I was there for about an hour, surprised at the number of Chinese customers opening FD there. Maybe some of them also follow this thread ? Ha.

* My sons' FDs will mature tomorrow. So I will open FD at BR for them. Increasing from 3.2 to 4.01% will be most welcome. Will keep their FDs at other banks as well.

* Also went to UOB. 12 months interest is 3.75%. The manager will check with her HQ for a higher % when my other FD matures. Do you need to apply for PB or is it automatic once you reach their required $ amount ?

Sorry for the long story.

Cheerio.

wu ming,

I think you are right. Compounded only on reaching FD maturation when I think back on my other yearly FDs. Thanks.

Do we need to open a savings account for it? No need. If you wish to use the referral 0.1%, then you need to open a SA there.

Can we uplift at any BR branch after maturity date? Sorry, I do not know. Check with BR.

BR rate may be higher than the rest BUT you need to consider that BR is not covered under PIDM for your deposit(s).

All the best.

BoomChaCha,

Thanks for the head up.

I hope it is true as I need to find new, better homes for some FDs which will mature at the end of the year.

Cheerio.