Actually if got promotion rate, just go for it.

There is very likely, interest rate hike won't more than 0.5% until next year.

If promotion rate already more than 0.5% than board rate, already good enough, as there is no guarantee that promotion rate is still available after the rate hike, or in other word, if rate hike is 0.25%, it is not guarantee that bank will offer rate at previous promotion rate + 0.25%.

Seeing the pace of FD rate being raised, (OPR hike 0.25%, FD board rate hike 0.15%), it just means banks are not eager for deposit, so I doubt any promotion FD rate will be any significantly higher that currently have.

For longer term may be yes, as if bank locked down the rate for FD like 2-5 years, that any increase of rate in the future will benefit the banks more. So good rate may only being offered for tenure more than 1 years + or so.

Personally, I would go for Klibor structured produce if opt for placing money more than 1~2 years.
Get 5% for the next 5 years or so, if Klibor below 4%/4%+ for the tenure.
Get 0% if Klibor above, but if Klibor above 4%+, it means FD rate more than 4% already, so your FD can get higher rate already.
So both side you can "win" something.

Okay, Top Goat said: no increase in Sept. I recorded it down..
Will post what I find out from MBSB tomorrow here...

Yes, the BLR is likely to increase again in Sep, & yes, a 3-mth FD is about the best option till then.

I do not know whether the OPR will raise again or not in September, but I will place
the best 3 month FD now to see what will happen in September, at least this can
give myself a chance to plan for next step, furthermore the banks will not react fast
to offer new FD rates...

But for BLR and other loan rates, banks will react like rocket speed..

This post has been edited by BoomChaCha: Jul 13 2014, 04:16 PM

are you going for 3 months 3.6% from BR?
http://www.bankrakyat.com.my/deposits-account-i-

hard decision vs rhb and mbsb
http://www.rhb.com.my/Whats_New/deposits/s...D/#.U8JCOrGOMUG
http://www.mbsb.com.my/deposit_fixed.html

This post has been edited by lowya: Jul 13 2014, 04:30 PM

No lah..actually I do not have any money to place FD now.

If I had money to place FD now, I would go for OCBC 3 months FD,
50% of fund place in 4.3% FD, 50% of fund put in saving account either
Smart Savers or Premier Save Gold. Effective rate is approximately
3.87% if put in Premier Save Gold.

Except MBSB's 5 years at 4.7%, RHB's 15 months FD offers a better FD rate than MBSB,
why so hard to make decision?

RHB's 15 months FD effective rate:
http://www.rhb.com.my/Whats_New/deposits/step-up-FD/TnC.pdf

scare MBSB adjust their 5 years rate upward?

mbsb has locked in lots of loan at higher rate.

looks like they can offer long term higher rate.

but if the market turns bad, can they stand the shock.

Ha ha.. I hope so, but I personally think this is not possible
since 3 banks are going to merge soon, do CIMB and RHB allow
this rate upward or not?

I will happy enough if they can compromise to maintain all existing 4.7% FD
accounts after the merger

This is hard to say la...
But EPF is MBSB major share holder wor, and in addition
CIMB, RHB and MBSB are merging soon..

We should know how "powerful" is CIMB

how can rhb (4.1% p.a.) better than mbsb (4.7%)? are you sure u get it right?

15 months vs 60 months commitment, no brainer to compare. you just need to decide which suit you more.

if so easy you already deposit for 60 months aite?

I already said "Except MBSB's 5 years at 4.7%" in my first sentence ma...

Usually commercial banks' FD promos are better than MBSB FD board rates;
for MBSB FD board rates, we can only look at their 5 years FD at 4.7%, the rest
of MBSB FD board rates no need to "see".. ..

This post has been edited by BoomChaCha: Jul 13 2014, 05:27 PM

Yes, I did think about what you mentioned. Not necessarily that banks promo rate will increase by the same amount of OPR increase. Good point that if bank's promo rate is higher than 0.5% of current board rate, then go for it !

As for the Klibor, good point. Interesting that you pointed out on the below:
"Get 5% for the next 5 years or so, if Klibor below 4%/4%+ for the tenure.
Get 0% if Klibor above, but if Klibor above 4%+, it means FD rate more than 4% already, so your FD can get higher rate already.
So both side you can "win" something."

I did have CIMB Klibor except for 10 years and now 2.5 yrs gone. Better check their terms for the 5.2% payout which I have been receiving every 3 months. Now regret that I signed the 10 yrs agreement. With OPR increase even more, lose out once it exceed certain number !! 10 yrs is just too long !!

Ha ha, I would be happy if the OPR is increased again in Sept !! Either way, I win.

This post has been edited by bbgoat: Jul 13 2014, 05:53 PM

u remind me again!

it is still ok for now.

the thing i got from the banker is that most of these by cimb have been recalled. this particular 5.2% one we hv may be only one issued in that period that is still on-going. perhaps it is due to the size, cimb kept it.

well, we'll see... for now, the qtrly int is good enough for me...

I did hesitate when CIMB branch manager talked to me on the 10 yrs. She mentioned that the bank would have recalled it before the 10 yrs. Just like the 5 yrs one was recalled by them and changed to 10 yrs !

I hope they recall the 10 yrs one before OPR climb up higher and higher ! But they may NOT want to recall it if they sense that OPR will exceed certain number soon. Then our money is theirs to use .......................... without paying anything to us.

Gud for depositors

I only go for 5 years klibor structured product, 10 years seems too long distance for me.
5% if klibor doesn't exceed the threshold set, I am comfortable with it.

If 10 years, I go for reit or stocks already.

Most structured recall is on the banker side, there is no guarantee it will have early recall.
Why banks want to recall if they are giving nothing away?......

Last time I had experienced a early recall, when klibor is heading lower, everyone see no chance of hitting the threshold above. At first, good, I locked in the 5 years on klibor getting good rate, but the bank recalled just after 1+/ 2 years or so after the product has been run.

Still I do not think klibor will be above 4.+% in the near future, and probably I won't able too see FD board rate more than 4~5% in my lifetime as well.
As whenever economy hit bump, central banks always opt for loosely interest rate policy.

CIMB Klibor the one that I subscribed to was recalled after about 2 years with returns of about 5.6%. It was replaced with 10 yrs one with returns of 5.2%. I was nuts to listen to their branch manager that likely they will recall it within years.

The indicated Klibor was at 4.4%. Hopefully it will not be breached in few year's time as it still has about 7.5 years to go.

Anyway, no more recallable Klibor for me from now onwards.

This post has been edited by bbgoat: Jul 14 2014, 12:27 PM

Hong Leong already updated their FD rates, effective 16 July.

1 month - 3.05
3 months - 3.1
6 months - 3.2

not really enticing, but kudos for being the first bank to publish their new rates