Oh, you have to choose your words carefully about "always land".

Ya, BR rate not that competitive any more. But the monthly interest is something which is attractive in a way (sometimes need extra pocket money to play CD ) . Also part of spread out the risk thingy.

This post has been edited by bbgoat: Jun 20 2015, 01:43 PM

thanks guys.. I learned new stuff today..

Fixed Deposit & Term Deposit..

FD - guaranteed rate

TD - not guaranteed since it is based on "Profit Sharing" & rate might change

Forum got true and false info. Know how to dissect it.

RHB I saw a banner giving FD for 7++%, anybody saw it?

Bro, above not correct. For non-Islamic Term Deposits (e.g. Citibank), the interest rate IS guaranteed. Many banks now call their FD TD.

Point is - one must know the terms and conditions of a product before depositing.

This post has been edited by Gen-X: Jun 20 2015, 05:36 PM

Have been discussed before. Bundled with ASNB UT.

If depositors unable to differentiate between Conventional n Islamic, stick to earlier which will never goes wrong

I would say stick with Islamic is a better bet as Islamic normally better rates.

okay. point taken

For short period is fine but not long duration

Some banks like HL Islamic, will lose 2 days interest if use personal cheque !

Ha ha, that reminds us of Ah Boom's issue !

This post has been edited by bbgoat: Jun 20 2015, 06:02 PM

oh.. thanks

50/50 FD/UT. I took up 6 mths 7.8% FD in April, there is a 3 mths FD option. Not sure if the FD promo rate still the same.

Have been following this topic for quite some time but have not posted before. This is my 1st post to LYN. I found out that there are many confusions regarding Islamic FDs/TDs. This has been going on for years it seems. I would like to share my understanding of Islamic deposits.

There are actually two types of Islamic products similar to FDs.

There are 2 concepts related to Islamic term deposit: -
1) Mudarabah (Profit-Sharing) - usually offered as General Investment Account-i (GIA-i)
2) Tawaruq / Murabahah (Cost Plus Sale) - usually offered as Term Deposit-i (TD-i)

For GIA-i accounts, the profit rate is not fixed but based on profit sharing, the rate quoted is only indicative. For TD-i accounts, the profit rate is fixed upfront during placement and the profit is guaranteed. Initially when Islamic FDs were introduced, most of them were based on the Mudarabah concept. Later, the Tawaruq / Murabahah concept was introduced. Some banks converted their islamic TDs to the new concept while others introduced new product based on the new concept.

The confusion is further compounded when Public Bank introduced the Step-Up Promo (4+4+4) for its Islamic Term Deposit. This 'subject to OPR changes' condition is not unique to the TD-I only but also applies to its earlier Step-Up Promo(3+3+3) which is also applicable to its conventional FD. The profit rate for Public Bank's TD-i is fixed and guaranteed upon placement as it is based on Murabahah principle. Only the subsequent roll-overs are subject to OPR changes which is also equally applicable to conventional FDs.

With the coming into force of the IFSA, Murabahah-based products would be classified as Islamic deposits while Mudarabah-based products would be classified as Islamic investments. Hence, many banks are converting the accounts either to retain them as Islamic deposit or to convert them to Islamic investment. When the banks are finished with the conversion exercise, only Tawaruq / Murabahah-based products would be considered as Islamic term deposits. Mudarabah-based products would no longer be eligible for protection by PIDM as they are no longer Islamic deposit accounts.

OCBC offer 3 mths FD @ 4.8% plus free Sony Powerbank
The above offer is valid if apply via RinggitPlus
Did anyone apply b4?

Thanks

The gift is for new accounts only.

Thank you for the above details

And since you do seem like you are well verse in Islamic Banking FD - one question, in the even I place an Islamic Banking TD/FD and I die before it mature, would the money in the Islamic Banking TD/FD be subjected to Syariah Law in terms of how it will be distributed?

I think still the same rate primo. I saw the banner stating 7.8.

I have taken up the offer as I was topping up on my holdings of the ASNB UT.

Have mentioned before on this bundle: Don't take it up just because of the high FD rate as you could lose on the UT side (5% service charge & UT potential loss).