The CGB, one is with Genting Capital Bhd which gives out the higher interest. The slightly lower one is with CIMB but I forgot which subsidiary or division. Will know more tomorrow. Just note, the bond has a minimum 6 figure requirement

This interest me because I'm not a fan of lock in period which doesn't give me liquidity flexibility.

bro be careful. capital guarantee but return no guarantee unlike fd.

It is guaranteed. I'll never blindly sign documents anyway. If it isn't, I won't go for it. Sometimes they also fed up that I sit there and read and read and read all the documents they ask me to sign ... Zzzzzzzz

Capital guaranteed /= return guaranteed

They both carry different meaning all together.
Becareful the term being presented.

If interest rate is going up, secondary bond price may be go lower one.

There is no free lunch, when one is able to get higher return, then there is almost certain extra risk needs to be taken.

FD
- guaranteed the capital, even premature withdrawal
- guaranteed the interest rate set

Bond
- guaranteed the face value of the bond if held until maturity with no default, while premature withdrawal is subjected to secondary demand of the bond aka based on secondary bond pricing.
- based on the coupon rate on face value when first published

Bond although can be sold at anytime, if doesn't guaranteed you won't make a loss if secondary bond market going down.

If only guaranteed when you held until maturity.

Somemore, if you enter the bond not at face value or during initial issuing, it just means you buy the bond at secondary market, which could be higher or lower than the face value.

There are plenty of corporate bond available even for overseas and denominated in USD or other foreign currency.
Not just one or a few local.

Thanks for the tips. Will be looking at it closely to see what are the drawbacks to it. If both capital and return isn't guaranteed, which I am pretty sure was what the RM mentioned, I shan't be taking up that offer. I have enough in my portfolio that already carry risks that comes with equity.

This FD thread is more for secured returned. Will return with updates when he calls me tomorrow.

capital guaranteed provided investor hold it until maturity which most bonds have a term of up to 30 years.

Bond prices will move towards par as they approach maturity (if the market expects the maturity payment to be made in full and on time) as this is the price the issuer will pay to redeem the bond.

Some bonds are callable, meaning that even though the company has agreed to make payments plus interest towards the debt for a certain period of time, the company can choose to pay off the bond early. This creates reinvestment risk, meaning the investor is forced to find a new place for his money, and the investor might not be able to find as good a deal, especially because this usually happens when interest rates are falling.

In the bond market, when an investor buys or sells a bond, the counterparty to the trade is almost always a bank (in your case, SCB) or securities firm acting as a dealer. In some cases, when a dealer buys a bond from an investor, the dealer carries the bond "in inventory", i.e. holds it for his own account. The dealer is then subject to risks of price fluctuation. In other cases, the dealer immediately resells the bond to another investor.

@bbgoat, my SCB FD interest is also in

This post has been edited by Human Nature: Sep 29 2015, 09:44 AM

Thanks.

Picked up a lot of valuable infos from your posts in FD threads. Keep them coming

At the moment, I'm learning towards MBSB's 4.5% or 4.7% since those are the highest rates on offer now. But still hem & haw around just in case I missed out other FD with higher rates



If I'm not mistaken, the 3.25% rate is for OTC placement, not eFD.

Do correct me if my memory fails me...

4.50% by MBSB

MBSB promo is indicative profit rate. In reality how, e.g. track record?

I can't find 3.25% IFD via eFD.

Anyway, I setup a i-Yippie account, so can park (maybank2U transfer) up to 50k to get 3.25%, calculated daily i think.

Question: How many i-Yippies can i create with the same branch or other branches?

They will honour the rate n track record is gud

The Ambank FD promo requires CASA.

lucky you. went to my local mbb and was told promo had already ended.

Did u ask when is their new promo?

"no promo at this time." I doubt the queue counter knows future promos though - the info was not volunteered anyway.

Hi
I was thinking to dump most of my fd into my full flexi house loan so that i can gain more since house loan interest is higher plus more flexible.
Any disadvantage from doing this?
from calculation wise is looking good. Is there any thing i should be aware of financially?

eFD can. Tried last month, interest is 3.25% min rm5k.

Yes, they won't tell you the interest before putting. You can check Maybank's Islamic fd before putting. I got 3.25% last month. Always refer to their Islamic FD page before putting as they might change quietly.

I am guessing you can open one yippee account /kid that you have.

This post has been edited by Ramjade: Sep 29 2015, 01:03 PM

Proceed ASAP