I taught it is 250K per entity per bank.

As far as I knew, split to many account, won't entitle for the more coverage, aka you open 4 account with Bank A, you only entitled for 250k total.

You want 500K coverage then need to open account with Bank B.

http://www.pidm.gov.my/About-Deposit-Insurance/Coverage.aspx

If I am not wrong, yes.

A has current account or 10x many accounts in bank Z-- 250K total.
A/B has joint account or many accounts in bank Z - 250K total for A/B.

As if we look from the perspective of entity, account A is not the same entity with account A/B joint account.

Normally the first thing bank want to do after OPR being revised up, is changing their BLR, so you can see as soon as one day after the OPR being revised, BLR being revised accordingly, banks generally very "efficient' in this move.

But for FD, since banks are not eager for liquidity as current situation, it may take sometimes, before being revised.
Sometimes, not in portion to the OPR or BLR increased (happen last time once).

No central banks that hawkish unless situation is depressed, which is not at current situation.

Generally always 25 basis point hike one time one.

This is what I had said early on...

If so, bank may earn more profit with bigger spread between FD and lending rate.

FD rate may be revised slowly, but BLR I believe all bank will come out statement by today evening.

Loan interest calculated daily, if not revised today, somemore over the weekend, 3 days difference could worth a lot of money for banks even with 0.25% difference.

A bank typically loan out at least about ten to hundreds of billion, if said 100 billion loan that based on BLR x 0.25%/365 = 689K per day interest difference.

If slow 3 day, 2 million difference...

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.

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.

Tier 1
Tier 2 is for customer deposit more than 1 mil generally, depended on bank imposing, can be vary.

Sometimes, if amount is small, the 0.1~0.5% difference may not worthwhile to purpose transfer the money around, time, parking, petrol may be more than the extra interest earned. Eg. 10k FD with 0.2% difference, is Rm20 pa. Purposely go to bank, withdraw and drive to ten of km away, then parking fee, the total amount of fuel, parking fee, toll fee may also reach Rm20.

Unless one doing in convenience, and having time, then it is another story.

Convenience, prompt good service also a consideration, not solely rate.

I had bad experience with one bank, that I had met no less than 3~5 time offline issue, which I unable to do any transaction when their system was offline, waste plenty of time and effort, so even they may offer a better rate, I also give it a skip.

Beach street and around that area, should able to find almost all established commercial bank including so called foreign bank.

Interest rate decision is always based economy situation.

Household debt level, inflation, GDP, export/import figure, IPI, current account surplus/deficit etc are several important indicators that may influence the interest rate decision.

BNM is the one make decision on OPR, not anybody else.

BNM did release monetary policy statement that send signal to the financial market, what they intend to do.

http ://www.bnm.gov.my/index.php?ch=en_press&pg=en_press_all&ac=3037&lang=en


It means BNM will watch how is the economy doing and how is the data in the coming months for the next decision.

So it is far from conclusion, that next hike is imminent of off the table.

This post has been edited by cherroy: Jul 23 2014, 04:29 PM

Money in dormant account more than 7 years will be sent to BNM under unclaimed money pool.

But it is not considered "gone", as account holder still can claim back the money via BNM.

The total of unclaimed money based on the news amounted about 4 billion.
http://www.thestar.com.my/Story/?file=%2F2...ation%2F8106014

Personally I do not think Sept got rate hike.
It is unlikely BNM want to hike rate again just after a month plus time whereby the previous rate hike effect is not yet being seen.

FD that more than 12 months, bank need to give the interest every 6 months, so they need a saving account to credit the interest.
No account, interest no where to go.

It is quite standard practice for banks across generally that FD more 12 months, that interest is given for every 6 months.

Household debt growth has slow down from early year around 13% to now around 10%, so does inflation inched down from 3.4% to 3.3%

The household debt is the key reason why BNM want to raise rate recently.

It is far from conclusion that BNM will raise rate in Sept.

If the household debt still growing fast, and inflation is elevated, then yes, high probably OPR is going to be raised again, but now these 2 data showing slowing down trend.

Most foreign entity bank (as far as I experienced) adopt one account can be assessed throughout any branch, aka you do not need to open another account to do deposit or withdrawal.
Any branch can do.
You deposited FD at banch A, can make withdrawal at branch B in full amount.

While local bank mostly adopt branch base, aka you need to back to the home branch to withdraw full amount.

It is inappropriate to compared a structured product with FD.

Structured product carries some risk in between to achieve high yield than normal FD rate, while if situation is not favourable to the structured product, it can result in zero return or lower return rate than the anticipated rate.

So it is different with FD entirely.

For FD "fans" the structured product that may suit to the appetite may be Klibor structured product, whereby there is nothing to lose in between.
For eg. a Klibor structured product that carries 5% return if Klibor doesn't exceed 4~4.5% in the next 5 years, you are paid 5%. If exceeded, zero return.

So if Klibor rate doesn't go up (or in other word FD rate doesn't go up), you get 5%.
While if Klibor rate goes up, you get zero from the structured product, but at the same time, your FD can get a raised FD rate already.

So in between, you have something to gain.