All banks will auto renew FD upon maturity based on board rate if the customer did not give any instruction on maturity. It happened to my Ocbc FD when it was matured and renewed based on board rate. It was my fault for not remembering the maturity date.

5- 6 years ago when you signed up the FD, you may have agreed on auto renew. Even if you did not give instruction not to auto renew, the bank will auto renew for you. Imagine the bank didnt auto renew and leave your money as it is without interest, BNM will probably after them.

Once it is auto renew, the new FD will follow the T and C available at the time of auto renewal. The T and C may spell penalty on pre mature withdrawal.

If you did sign the auto renewal instruction or any by default auto renew instruction, it is deemed as you have agreed and enter a contract of new agreement after FD maturity. With that scenario the bank has the right to forfeit interest for premature withdrawal if the T and C stated that on premature withdrawal.

Most bank can take in RM2000 as FD for board rate FD. For a 12 month FD, the difference between board and promote rate is merely 0.5%. 2000 x 0.5/100 = 10 for a year

Can share where did you get the info bank is experiencing a drop in deposits?

Interest rate is the monetary policy tool used by all central banks to intervene in money supply market. Begining January 2015, bank will longer offer loan with BLR term.

Thanks for the link. A drop in deposit rate and an anticipation of more property loan ahead of GST will help to increase the FD rate.

Through the phone you can also judge she is a leng lui....very powerful phone or pure imagination?? No wonder kepala pening...i received UOB sms only mentioned 4.2% ...


Now I have to decide RHB 9 months or UOB 4.2% for 12 months...RM25 difference for a year for 50k FD. 9 months will be RM18.75 less for RHB FD after 9 months.

If when RHB FD mature after 9 montgs and there is a FD rate of 4.35% for 3 months then only I will get RM18.75 back or equivalent to UOB 4.2% for 12 months. In short it is better go for UOB 12 months now provided no higher offer after this.

This post has been edited by gsc: Dec 9 2014, 12:20 AM

Not sure about May bank. For public bank, I just told the counter withdraw from my saving and place into FD account. The most friendly bank on fresh fund. For UOB I withdrew and added on some cash.

The cheque is from different bank? With this method all banks considered this as fresh fund.

Yes I did that because at that time I did not plan to place back the FD and dont have a personal cheque book with me. But after a long lunch with friend, I give it a try with another counter and it was considered as fresh fund.

Nowadays I am using IBG and personal bank combination to meet the fresh fund requirement. Surprisingly that day Public bank allowed the existing saving account money as fresh fund for FD placement

Thanks for the different perspective on early maturity and the compounded interest effect. However, i have made the following near apple to apple comparison on RHB 9 months x 2 and UOB 18 months.

Assumption
RHB 4.15% for 9 months and UOB 4.2% for 12 months still available when both FD placements are matured.

RHB
50,000 Principal and 4.15% interest for 9 month. Upon maturity interest earned is 1556
2nd 9 months placement with 51556 as principal, upon maturity interest earned is 1605.
Total interest earned for 9 x2 months placement is 3160.

UOB
50,000 Principal and 4.2% interest for 12 months. interest earned is 2100
52100 as principal and placed for 12 months, interest earned for 6 months is 1094.
Total interest earned for 12 + 6 months is 3194 which is 34 more than that of RHB.

Alternatively any bank offers 4.07% interest for 6 months after 1 year maturity will be earning the same interest as RHB 9 months x 2

This post has been edited by gsc: Dec 10 2014, 12:27 PM

Thanks for the reminder. Public bank foreign currency account automatically move it to working day if maturity falls on off and rest day. I noticed ths a couple of years back but not sure is the bank still practice this.

I wonder in general will bank allow client to move maturity date to working day during the FD placement.

Mortaged the settled loan (4.9%) as over draft facilities....I am assuming it is a property loan

This post has been edited by gsc: Dec 15 2014, 10:47 PM

Yesterday place FD at UOB, the counter girl said if maturity falls on off or rest day, UOB will pay the interest because the interest is calculated daily. If I am not mistaken some members here mentioned no interest payment if maturity date fallson non-working day.

With RHB drops the minimum placement amount, dont mind place at RHB as well.

Deleted

This post has been edited by gsc: Dec 17 2014, 01:16 AM

It seems quite a number of members here get the air steriliser. Returned a sms for address. Replied back and instantly received a sms said the unit will be couriered.

Economic growth is depending on the money supply in the market. The tool used by central bank to increase and decrease money supply is through controlling the interest rate. With oil prices dropping and people with negative economy outlook, most countries will have concern on recession. Conventional tools like open market operation, discount ratio and reserve ratio etc are not effective in spurring the growth. Zero interest policy, QE, Credit easing, negative interest rate were introduced. Thus it wont be surprise that BNM may follow what US is doing to encourage more spending instead of keeping money in bank as the GST induced inflation pressure will be countered by big drop in oil prices.

If a country borrows money to finance on capital equipments or other investments to generate revenue to pay part of the debt then borrowing money to finance growth is acceptable. A manufacturer borrows money to buy machines to produce products for sales is better than a person borrowing money to pay the outstanding credit cards payment.

Some one has reported RHB not only extended but also the min is RM10k instead of 50k.

not sure anybody reported here, Ringgitplus Mach FD with rm200 petrol gift..

https://ringgitplus.com/en/fixed-deposit/Ma...CFUIpjgodf4wA6g

This post has been edited by gsc: Dec 23 2014, 04:31 AM

It is similar to what Ocbc and Ringgitplus promotion earlier. That promotion provides free air steriliser for first 200 customers and 10 gold coin through lucky draw. The placement is made with Mach. Please read T and C

Are you referring to account opening? account opening has to be made at encounter at Mach branch. When Mach first started they offered attractive FD rate and at that time no Mach in Penang. Only this year they have a Mach branch in Penang.

Please refer to the T & C above my post on those new and existing Mach customer. It is only first 100 customers eligible and low FD placement of RM1000, it seems like difficult to be the first 100 customers.

This post has been edited by gsc: Dec 23 2014, 12:31 PM

Thanks for the info on RHB extension. I read and dont remember who contributed.
Instead RHB I have placed it with UOB for 12 months. Since the min amount is lowered, may consider RHB if there isn't any better offer.

On Mach offer, I saw in the earlier post but I couldnt remember it mentioned RM200 petrol gift. Well since there is a website, I might as well post it for those who are not comfortable with hearsay.