Speaking aloud on EPF vs FD, appreciate your inputs on the pros and cons.

PROS
* higher rate than FD at present (3.x vs 6.x)
*

CONS
* difficult to withdraw before 55 (but can use part of it in UT & shares)
* is your money in EPF guaranteed?
* rate may drop depending on govt/economy
*

Seriously thinking on channeling some money there.

Thanks.

Noted and thanks.

1) Done that.
2) Was not aware of withdrawals for health & education. Have withdrawn once for my housing loan many years ago.
3) My concern is the master at the top of EPF (govt) using the money and I have seen a few emails on EPF wasting and running out of money. Don't know how true is this.
4) Yes.
5) Yes, used my EPF for UT in the 2000's, sold the UT and the money went back to my EPF.

Property and shares are now too volatile for me (smart ones can still make money there). So, instead of FD at 3.5-4%, why not EPF at 6+% came to mind. Leave the $ there for 1-3 years and when economy recovers to more stable level, invest in shares/UT via my EPF money. Logical/smart thinking? Ha.

Cheerio.

Thanks.

At present, I think they still allow those approaching 55 to withdraw all. Yes, don't know when they will change the rule.

60K per year, after 5 years, 300K, FD vs EPF difference = 300,000*0.02 = 6K per year extra.

On REIT, I was tempted about a year ago on the dividend. But the negative side is the current volatile economy, one still gets the dividend BUT with the price dropping, to me, better just leave the money in FD till we are out of this economy "hole".

Cheerio.

Need some feedback from those who have experienced this.

Suppose I have an FD with BR at 0.1% higher than the normal rate. On maturing, if I leave it without withdrawing, will it be renewed at the higher rate? Or back to the normal rate?

Thanks.

Thanks to bbgoat & nakedtruth.

Looks like I will have to put on a thick face next month to renew my FDs at a higher rate since the higher rate is not automatic/maintained.

Cheerio.

You are from the UK?

Get a good sun tan walking to the bank. Ha.

Enjoy your stay here in M'sia if you are not a M'sian.

Cheerio.

Sorry to hear about the run-about with your FD.

Why don't you consider Bank Rakyat or Affin Bank? They have higher rates. Being a foreigner, be prepared for the delay in getting your account in place.

Cheerio.

One thought came to my mind a few days ago. Someone raised the question about getting multiple FDs when the amount is large. Tied to the large amount is the ability to negotiate for a higher rate.

Now, the potentially good part is, in the event that one needs to prematurely withdraw some money, then one can terminate one of the FDs without loosing out interest on the rest and also still keeping the higher rate for the remaining FDs.

This is of course provided the bank does not keep track that these FDs are supposed to be a package for the higher rate and does not allow customer to partial withdraw.

Anyone has experienced this?

Cheerio.

Thanks for your spread strategy.

Thanks for the feedback from your experience.

Many thanks for your input.

Never thought of this concept - when I am sure when I don't need the money for years, then I should have used the xth years higher rates! See below for their example.

Building Your CD Ladder
1. $109943.47 in a 12 month CD at 1.05%
2. $109943.47 in a 24 month CD at 1.26%
3. $109943.47 in a 36 month CD at 2.02%
4. $109943.47 in a 48 month CD at 2.02%
5. $109943.47 in a 60 month CD at 2.02%

Will keep this nice idea in mind for future use!

Cheerio.

Noted and thanks.

Just noted one surprising thing with FDs even though I have done more FDs than my fingers and toes! Ha.

I had a FD with BR on 16-5-2013 for 6 months. Just noted that the maturity date is 18-11-13 and not 16-11-13. Why? They adjusted it as 16-11-13 will be on Saturday. So they used the next working day. FDs with other banks do not adjust for this.

Interest included for the 2 days extra? I think so, will confirm as I cannot remember what is 6 months rate now.

Just for sharing.

Noted and thanks. Will do the check.

Thanks for the infor.

Hope that they will also do that in Sarawak.

Interesting.

If I read in between the lines, I think Ambank is then expecting higher BLR in the coming 3 years.

I think BR rate is still higher for 3 years.

Cheerio.

Yes, I am aware of BR & PIDM.

My simple view is, BR is under MOF and if BR collapses, then by default the same for its parent, i.e. the govt. With so many govt servants in BR, I don't think the govt can afford BR to collapse, unless the govt knows there is no future and calls it quit! My 2 cents.

Cheerio.

Let me guess, the one with a "B" in its name? All banks will have a "B" in its name. Ha.

Or "P"?

Cheerio.

Just airing my frustration with BR.

My FD was due last Thurs and I went to the bank to withdraw. But the computer system was down. Waited for 30 mins there hoping that it would be back on line. Left after 30 mins as it was not back on line.

Called the bank to see if the system was back on line. Only got ringing tone and no one answered. So went to the bank again. Only to find out that the system was still off line. Something wrong with their fiber optic line which also affected their phones. Thus my call earlier did not get through. Asked them to call me once the system was ready.

Called again on Fri (phone was working) and said the system was still down.

Called the bank this morning to ask about their online system. Said system was working. Went to the bank and to my horror, it was packed with customers (being the end of the month). There were about 30+ customers ahead of me and I left the bank. Came back after 1 hr and I still had 15 customers ahead of me! Came back another 1 hr later and my queue number has past. Nonetheless, I went to see the section head and she tried to help me after I explained to her the multiple trips I have made to the bank trying to withdraw my FD.

When I asked whether I would get interest for the past 4 days as I could not withdraw when it was due (system was down), initially, the gent said no. I complained and later after their discussion behind the scene, they gave me the 4 days interest. Enough for 2 or 3 durians. Ha.

Just for the slightly higher FD rate, I went for BR. Now this problem, wasting my petrol, parking tickets, time, etc. Is it worth it? If I needed the money for some urgent or important payments, is the bank liable for such unable to withdraw problem?

Maybe once in a blue moon, it is OK. If it becomes too regular, then I will switch to other banks.

P/S For your infor, went to another bank this afternoon, the system was down as well. Don't know why so many down systems at the end of this year. Suggest that you call the bank before you go to the banks today or tomorrow.

Maybank (for their ASNB service, I think)

Many years ago I used to complain about the watching grass grows waiting game at Bank Bumi but now CIMB is not that bad. Luckily. Ha.

From BR to MB as I need for my 3 main end of month transactions. No, not better rate. Sorry.

This post has been edited by plumberly: Dec 30 2013, 06:29 PM