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 Fixed Deposit Rates in Malaysia V4, Please read 1st post.

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guy3288
post Aug 17 2013, 12:11 AM

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QUOTE(BoomChaCha @ Aug 16 2013, 10:48 PM)
Sorry I did not make it clear..

Compound interest: After 1 year FD is matured, can add earned interest into principle money (initial FD) and place for
second year of new FD, and etc..

Meanwhile, for 2 to 5 years FD, bank will only pay interest based on straight 2 to 5 years basis, no compound interest.

For example, let's assume 4.6 rate for 5 years:
1st year: RM 10K at 4.6% = RM 460
2nd year:RM 10K at 4.6% = RM 460
3rd year: RM 10K at 4.6% = RM 460
4th year: RM 10K at 4.6% = RM 460
5th year: RM 10K at 4.6% = RM 460

Total interest earned at the end of 5th year: RM 460 x 5 years = RM 2300 (approximately)
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put 1year or put 5 years, you still can earn compound interest. The only condition is you must get the interest paid out monthly. Take that interest and go put new FD. You dont earn compound interets only if the bank keep your interest and only pay you at maturity say at 1 year, this you will lose out. I always make sure i get a FD that pays me monthly interest. Either use your junior FD or senior FD, normal FD dont pay monthly.

You dont need the bank to add your interest into the principle to compound interest, you can invest it elsewhere or add it to your next new FD
guy3288
post Aug 20 2013, 11:05 PM

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A short term high FD rate like 5.5% for 3 months gives much less "extra interest" compared to a long term 4.7% for 5 years.

It's quite a hassle going after the 3 months special rate. So fast it matures and then you are back to board rate.

I would go after the long term eg 48 months special rate of 5% etc.

I see you guys have quite alot in FD, so if the rate you get is 1% less, you already lose RM10,000 a year for a 1M FD. Over a period of 10 years you guys can lose quite alot of money if you dont get the best rate in town.

This post has been edited by guy3288: Aug 20 2013, 11:07 PM
guy3288
post Aug 23 2013, 11:00 PM

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so low rates now, just wondering when is the 4.5 - 5% FD rate is going to come back........
guy3288
post Aug 27 2013, 12:01 AM

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That HSBC premier FD promo is not good, put 150k in UT then only can put 150k FD at 5% for 3 m.

HLB no need to buy so much UT. Just RM50k UT then u can put FD 150k for 3 m at 5%pa. UT fees chargable at 2.5%.

If they allow FD for 1 year then maybe something. This 5% FD is only for 3 months, the extra interest we get is not much. For RM150k there the extra is only RM375. The UT you are forced to buy may cost you more then that.......worth it ?
.
guy3288
post Aug 27 2013, 12:22 AM

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QUOTE(Gen-X @ Aug 26 2013, 12:14 PM)
2. Me placing FD with BR or MBSB - NO. Lack of service is not the issue here, I have mentioned long ago in previous thread that I am against using the rakyat money to bailout greedy people who go deposit with financial institutions offering higher % rate... And for those anti BN who go deposit in BR for higher FD rate - you guys are hypocrites.... (I do not expect many to understand this paragraph... or maybe none at all, hahaha).
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This is interesting......but not clear what actually Gen X meant . I hazard a guess here Gen X, i stand corrected.


1) BR and MBSB are government instruments - so if you hate BN, do not put FD with them there.

2)Put FD in BR or MBSB , you cannot lose your money becos even if BR/MBSB go bancrupt,government will bail you guys out, and this GEN X is against government bailing you guys out.

betul kah Gen X?

guy3288
post Aug 27 2013, 10:50 PM

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I dont know what kind of logic Gen X is using there ......

MISMANAGED company?

saying that a company making money year after year and paying out good dividends is being mismanaged ??

And further added he fear govt will need rakyat money to bail it out, is just ...

Isnt' that unreasonable paranoid?

If BR is unable to pay out interest on schedule, unable to pay out matured FDs then i agree la.

The first sign of mismanged co is losing money. Where got money to donate for election??

If you need example to quote you should use MAS. A real rascal that used alot of rakyat's money for bail out. Have you ever taken MAS flight before??

You better make sure your answer is NO.
guy3288
post Aug 29 2013, 12:20 AM

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GenX---->
"And like I said, many here would not deposit with BR if their money was not guaranteed with Rakyat Money. You telling me you willing to deposit there without this guarantee? "

NO, that is not my reason at all for putting FD with BR . The performace of BR itself is enough to assure me.


I doubt any other BR depositor in here even ever thought of that as a security for their FDs with BR. Prove me wrong any BR depositor?

I am not as clever as you to have such wishful and cunning thinking. I dont know who the chairman is, how they mismanage BR etc,who bothers as long as they pay us interest in time.

As BR and MBSB depositors we are taking higher risk. No risk no gain. You cant take the risk, you go for lower FD rate with PIDM cover but no need la to spite us with wishful thinkings that we never even thought of before.

So fearful of losing your money you cant put FD with BR. No PIDM ! And if you are really that fearful, you really cant rely on unwritten
'guarantee' as protection right? Either way it does not hold water.

Fact is you put FD with BR you have to be brave whether you wanna admit it or not.
guy3288
post Aug 29 2013, 12:45 AM

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Gen X--->
"As for your argument on MAS, I pay for the ticket lah (well, indirectly but still at a cost) and as such ensuring the survival of MAS tongue.gif And if MAS goes bankrupt, it won't benefit me in anyway and I personally won't be getting a single sen from the Rakyat (but not the case for you depositing in BR). Actually you got it wrong, it more like Rakyat's money was used to bail out a particular individual and not MAS per se. And I thank you for taking this "MAS scandal" as your argument point because it just made you agreeing to my point of view, hahaha, i.e if BR goes bankrupt, you too will be receiving the rakyat's money, same same as the individual in the MAS "scandal". "

Your logic is again wrong there Gen X-

Let me explain for you to see.

MAS is a clearcut example to show you are a hypocrite - cakap tak serupa bikin - and in no way you can wriggle yourself out.

You pay money buy MAS ticket so you no hpocrite?How about we pay money buy BR FD cert? You think we dont need to pay, just go BR take FD cert free kah?

How can MAS goes bancrupt u dont get anything? Think first la..
You dont get anything ONLY if your very much mismanaged MAS is not bailed out and then your flight ticket burnt.

But Govt bailed your MAS out with tons of rakyat money! So you gain, you can fly again other day, you dont burn your ticket.

Of course Tajuddin gain more la, still you are hypocrite since you also gain from rakyat money.

You pay for MAS ticket, you are ensuring its survival?. We pay BR for FD cert , we also ensuring its survival what? So how can BR supporters only are hypocrite and you MAS supporter no hypocrite?

simple logic only mah....
guy3288
post Sep 4 2013, 02:05 PM

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QUOTE(Gen-X @ Sep 4 2013, 12:38 PM)
Ok if I come across more, You can also check with UOB and Alliance, most banks have similar product. Important question is Capital and/or dividend Guaranteed.

The reason why I mentioned the OCBC NID is because this product entitles new PB customer to qualify for the PB 5.5% 3 Months FD Promo.

To All, updated post#1 for HLB Inlamic Promo

Hong Leong Islamic Bank Promotion until 31  October 2013, Straight forward no need CASA thingy.

6 Months - 3.3%
9 Months - 3.4%
12 Months - 3.5%
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THis OCBC NID sounds quite good. Wonder where can i read about the T&C.....
guy3288
post Sep 6 2013, 12:06 AM

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QUOTE(BoomChaCha @ Sep 5 2013, 09:53 PM)
Ha.. ha..  biggrin.gif  I guess I feel more comfortable to put money in BR rather FRNID.

Let's say if we place RM 100K at 3.5% p.a. for 1 year FD, assume if the 3.5% interest rate remains constant for the
next 4 years, the total compounded interest earned for total 5 years is RM 18,768.63.

Year-------- Year Interest------                Total Interest
1-----------  $ 3,500.00  ------                      $ 3,500.00         
2-----------  $ 3,622.50  ------                      $ 7,122.50         
3-----------  $ 3,749.29  ------                      $ 10,871.79 
4-----------  $ 3,880.51  ------                      $ 14,752.30 
5-----------    $ 4,016.33  ------                      $ 18,768.63 

-----------------------------------------------------------------------------

Here let's assume if we put RM 100K in OCBC FRNID at 4.5% p.a. for 5 years, if everything goes smoothly,
the total compounded interest earned for 5 years should not more than RM $ 24,618.19.

Year-----  Year Interest--------  Total Interest
1--------  $ 4,500.00 --------          $ 4,500.00 
2--------  $ 4,702.50 --------              $ 9,202.50 
3--------  $ 4,914.11 --------          $ 14,116.61 
4--------  $ 5,135.25 --------              $ 19,251.86 
5--------  $ 5,366.33 --------          $ 24,618.19 

-----------------------------------------------------------------------------

RM 24,618.19 minus RM 18,768.63 = RM 5849.56 (an optimistic figure)

So the difference is RM 5849.56, but no guarantee will earn this figure...  sweat.gif

Is it worth it to invest in OCBC FRNID for 5 years just to make additional RM 5849.56?
I think this depends on individual preference..

I used this site to calculate compound interest:
http://www.thecalculatorsite.com/finance/c...tcalculator.php

OCBC RM called me this afternoon to follow-up if I was interested in this product, he said OCBC has sold more than
RM 20 million of this FRNID.. whistling.gif

You can see the 5 pages of OCBC FRNID's terms and conditions on my Post #2373 on Page #119
https://forum.lowyat.net/topic/2722457/+2360
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I think not worth it becos we need 2 big IFs ie
1)The best scenario happens, KLIBOR does not move out.
2)The bank continue to pay and dont call back.

Structured product i had bad experience before , Bank always win, KILBOR within range, it can call back and you dont get that 4.5% for long.KLIBOR out of range, when they dont need to pay interest they will keep continuing till the very end, we lose.

HLB RM called to inform a new retail bond coming up soon with coupon rate about 5.5% pa, sounds good. Hope it is a real bank bond and not some UT or FRIND with much higher risk of not getting what is said.
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