Info on PIDM and your savings. Good guide for those playing the FD musical chair.



Courtesy of Imoney.

MMH2 requirements...


Open a fixed deposit account of RM150,000 OR
 - If full Government Pension of RM10,000 income is shown then no fixed deposit is required.

After a period of one year, participant who fulfills the fixed deposit criteria can withdraw up to RM50,000 for approved expenses relating to house purchase, education for children in Malaysia, medical purposes, rental, furniture, car purchase etc.

Participant must maintain a minimum balance of RM100,000 from the second year onwards and throughout his/her stay in Malaysia under this MM2H programme.


Basically need to open 2 FD, FD1 = RM 50K and another FD2 =RM 100K

FD 1 keep for 1 year, so can choose promo rate or Bank Rakyat 1 year maturity. However to take out need permission from government.

FD 2 basically FOREVER until you leave Malaysia or pass away. So suggest to look for bank with long term, non promo rate, at yearly rollover. Bank Rakyat is highest FD rate but got no PIDM protection (remember cannot take out no matter how bad the economy!). Next best with PIDM protection will be Affin bank?

Also since the money will be stuck there forever, you can choose to have the interest credited to your savings account, so at least you can 'touch' some of it

Oh and your FD deposit slip MUST be surrendered to the government, so no online FD ...


Successful applicants need to open their fixed deposits in Ringgit Malaysia (RM) only.
Participants need to obtain approval from Ministry of Tourism before proceeding to withdraw the fixed deposit.
Participants under this program may withdraw their entire fixed deposit anytime should they decide to terminate their stay in Malaysia under this program. However, they must obtain prior approval from the Ministry of Tourism.

New applicants who have purchased and owned residential property which has a PAID amount of RM1 million and above in Malaysia are eligible to apply for exemption from placing the full FD amount required of MM2H participants. They only have to comply with the basic financial requirement of FD of RM100,00 for over 50 & RM150,000 for under 50 respectively. This amount may not be withdrawn until the participants decide to terminate their participation in MM2H programme.

If don't want FD, then buy a 1 million house...but cannot loan from bank.

This post has been edited by gark: Mar 22 2013, 06:42 PM

You can go to Maybank and CIMB, however you can get only 3.15% p.a. at both banks for 1 year FD, Affin you get 3.6% p.a. All 3 banks are protected by PIDM insurance which will pay back your money in case the bank fails up to RM 250,000 per account. Other promo rate is not applicable to you since your FD is for Forever....

This post has been edited by gark: Mar 23 2013, 09:50 AM