New to lowyat here. Has anybody have any experience with Affin Bank Fixed Deposit Plus where they peg your interest rate to KLIBOR (the rate bank lend to each other??)?

http://www.affinbank.com.my/Consumer-Banki...FFINFDPLUS.aspx

The current KLIBOR rate for 12 months is 3.93%

http://asianbondsonline.adb.org/malaysia/d..._interest_rates

Seems attractive to me since I want FD rate that is consistently higher without going through hassle of musical chairs between banks when there is competition for deposits or putting precious money in banks without PIDM.

The strange thing about this product is that there is a floor, the interest rate pegged to KLIBOR will not be lower than for Affin's conventional fixed deposit.

Unless there is a catch, you will always come out ahead of conventional fixed deposit (unless there is promotion rate).

My gut instinct tells me that there is no such thing as a free lunch and there must be some gotcha clause lurking in the background (like JAWS).

Much appreciation to anybody who can enlighten me on this.

I see. Thank you.

10% in casa kills things off unless you have lots of money e.g. RM100,000 in Affin FD Plus + RM 1,000 to give lip service to requirement. Though need to confirm if minimum is RM1,000 as stated or 10% of FD amount.

I already have too many bank accounts so I will pass on this.

Probably just put money into conventional Affin Fixed Deposit, 3.7% for 12 months. No need to worry about CASA, PIDM or play another round of FD musical chairs.

Thank you again T231H!