http://www.maybank2u.com.my/mbb_info/m2u/p...al/ACC-Accounts

CIMB hasn't revised its FD rate.

1-month FD is still at 3%

This post has been edited by David83: Jul 16 2014, 08:33 AM

Higher than MBB for 1-month FD @ 3.15%

This post has been edited by David83: Jul 16 2014, 02:18 PM

For OCBC, I'll usually go to the Batu Maung branch.

I hate the Georgetown traffic during weekdays. It's a nightmare!

Seems like a lot of rich guy from Penang in this thread!

It's not anybody but Zeti's call to make.

Please understand what is OPR first.

URL: http://en.wikipedia.org/wiki/Overnight_policy_rate

Market is anticipating another 25 basis point up by end of the year.

Current OPR rate is at 3.25%

September is too near and I don't think it'll be very likely.

OPR is the interest rate a bank needs to pay in order to borrow from another bank. Banks in Malaysia do not face liquidity problem or credit crunch like happened few months ago in China.

OPR is equivalent benchmark rate used by US Federal Reserve and ECB. Central banks control this figure.

Besides, loan interest rate also governed by BNM using BLR model which is also tied to OPR.

This post has been edited by David83: Aug 4 2014, 04:16 PM

Read this site:

http://www.blr.my/

Yes. That's why investors are concerned and sensitive over interest rate as cheap money is not longer available especially at US, a lot of anxiety in the market whereby there's a potential for Federal Reserve to hike the interest rate for first time since financial tsunami in 2008.

1. The interest rate at US is nearing to 0%. IIRC it should be 0.25%. Cheap money equals too many cash in the market and this is true for US since they have been printed so many cash with 3 rounds of easing. Recently, they just planned to end QE3. In Europe, it's negative deposit rate.

2. When interest rate in US does go up, cheap money invested in other markets like emerging markets will go back to US. This will hit the currency and economy of the emerging markets. We saw this phenomenon last year when Federal Reserve started to say they wanted to end QE3. Countries depend on foreign fund like Indonesia, India and etc will suffer if their current current is not prepared for the outflow.

Of course, I'm just quoting examples from the developed market and in Malaysia, this may not happen but as interest rate goes up, loan is getting not cheaper.

This post has been edited by David83: Aug 4 2014, 06:32 PM

You're correct about the first section.

About the second section, I may confuse you. The outflow of foreign fund will definitely affect Malaysia as we're still relying heavily on FDI. What I tried to highlight the correlation of extremely low or negative interest rate may not happen in Malaysia as of nearest future or decade unless Malaysia is heading to Greece path and we're stating to print money to become banana paper money.

Sorry to confuse you.

This post has been edited by David83: Aug 4 2014, 06:39 PM

Effective interest p.a is the nett interest rate:

Let's a FD package offers interest rate as below:

First 9 months @ 3.3% p.a
Last 3 months @ 4% p.a

The simple effective interest rate is (3.3/12*9) + (4/12*3)= 3.475% p.a

This post has been edited by David83: Aug 29 2014, 07:13 PM