I agreed with this statement. Lock in for 1 month as you never know if you wont need the money next month.

But when I locked in for 1 month, you don't see me choosing banks with 3.15% or maybank 3.15%. Instead I choose maybank 3.25%. I am not going to give banks free 0.1%

Same thing with my Truesavers. Previously was using m2savers which give only 2.25%. When Truesavers come out, I switched and now gained 2.8% instead of 2.25%. If ambank a smaller bank than maybank able to give 2.8% for their SA, I don't see why maybank cannot. They choose not to give 2.8% instead only choose to give 2.25%. So since they are able, why should I give them the free 0.55% money?

5-years ... what if halfway interest hike to 6% per annum? The bank is not stupid, they lock you in for 5-years knowing the risk of interest fluctuation!

the argument was why give bank free money with lower interest rate whereas you can get higher rate at other banks lor

so, might as well we all go for 5yrs, right?

that's why, these type of argument is moot and pointless.

Aiyoyo Tun Ram,
your term "dont give banks free money" is applicable if the amount is huge.
For instance 10k. The difference between 3.15% and 3.25% is only RM0.833 per month.......
Dude.......you skip one starbucks/McD/KFC/Pizza session per month you will save more in your pocket.
I know some may say let the money work for you, but before even the money can work, you have to save!

I will use mbsb 4.7% as an example. Despite bank negara increases opr last time, the 4.7% didn't change. Why? Cause they know no one can match their rates hence they didn't change it. So even if bank negara increases rate, I don't think any banks are ready to offer that high interest. Remember bank negara cannot hike the rate or else >70+% Malaysians may default and these will cause problem for banks which will cause a chain reaction.

If I were in your shoes, once the SG HSBC account is open, I will remove the FD say after 6 months (remove my premium account status in malaysia) as once the SG account is open, they cannot close it. The most is the SG account get downgraded but it will still be there. HSBC cc is not as good as Maybank's. One can always TT or transfer the money online via other banks. Make use of HSBC and then dump them. That's if I am in your shoe. (Hence keeping the FD for say 3-6 months that way nothing will happen to the SG account)

Even with the monthly compounded interest, I am very sure it cannot beat a 4.2%/pa FD. So why settle for 3% when you can get more at 4.2%? With Rm300k, one is able to get premium customer status at other banks too. Well that is my 2c

You misunderstand me. If bank A offer 4.2% and bank B offer 4.0% for 1 year and both located next to each other, why should you choose Bank B over bank A? By choosing Bank B, one lose interest of 0.2%! It is same as giving Bank B the 0.2! Compare apple to apple and orange to orange. One cannot compare 1 year and 5 years as one might no want to lock in money for 5 years. Hence I give the example of Bank A vs Bank B. Same location, same term. Only different is the interest rates. All banks are the same (I am talking about pidm banks). The differnece is whether have to wait long time, comfortable seats, air-conditioning working or not and got leng lui/leng chai only.

You are forgetting about no of people. If there are 100,000 people who choose 3.15% over 3.25%, the banks are getting extra free rm83300 by offering 3.15% instead of 3.25%! Get my point? The lesser people who choose 3.15%, the lesser banks get. Hence they have to work harder (offer better rates) to meet their target. The goal here is forcing banks to give us better rates. That way, more competition. When there are more competition, it is us who benefits.

This post has been edited by Ramjade: Oct 23 2015, 10:48 AM

so, now you include other factors are to be considered la? didnt see you put these terms when u advise others to go for other banks and claimed "dont give bank free money", right?

point being, not everyone can access every banks. that's the reason why some other choose fd with lower rate.

there are many other deciding factors. there are alway pros and cons to any bank, promo, T&Cs.


one fact for sure: nobody would complaint having too much money.

This post has been edited by cybpsych: Oct 23 2015, 11:03 AM

If and only IF Malaysian are actively depositing using eFD, then this argument is valid.
Can you get the data from online what's the percentage of Malaysian using eFD?
I can strongly share with you my circle of friends rarely deposit eFD.
Most of them accumulate till a certain sum and place with the promotional rates.
Again your argument "dont give bank free money" comes in when they keep the sum in the savings.

cybpsych, guess no one asked me. Well now you mentioned it, I will state it here. Did you see me asking people to pick mbsb because of it's super high rates? Did you see me recommending banks like HLB when there are other banks offering better rates? I don't as I assumed people have access to all banks easily. So if one have easy access, why choose a lower bank over a bank able to give higher rates?

List on how to give banks less money,
- For FD, SA always go for banks with the highest rate at same location or nearby with same duration without complicated T&C
- For loans, go for banks with the lowest effective rates rate. Do not take personal loan just to live a "happy life"
- For CC, go for banks which offer easy to get high CB. Do not pay late and minimal amount.

haur
Again why dump money into normal savings which earn miserable interest while waiting? One can choose a SA which able to give high interest while waiting. Get a few extra bucks while waiting. Is their own fault for decided to keep in negligible interest giving SA as all transactions can be done online via high interest giving SA. Heck even with only Rm1000, I still keep it in high interet giving SA. At the end of 1 year, more or less I get a free topup from the banks (~rm28).

They can also put in 1 month efd rather than letting it sit and earning 0.01% interest. There are banks which offer min rm1K placement for a month.

This post has been edited by Ramjade: Oct 23 2015, 12:05 PM

Tun, u have yet to address on 1 factor namely sentimental value

i think to partly address ur liquidity concern you may still place a long term FD but spread the maturity
for me I make sure there will be at least one FD (10-12m tenure) maturing every other month. in between i might also have funds maturing from shorter term FD..that way at least the potential opportunity loss is lower

For me sentimental value is useless. My loyalty is to my bank account. Will the bank give you reward you for your loyalty if you put FD with them (lower interest, 1 year) compare to another bank which able to give high interest? I dont think so. Until a bank rewards it's customer for being loyal, I will not change my stand.

Btw, I shared my principles with my friend, he agreed whole heartily with me. He agreed that his loyalty is also to his bank account not the bank.

That's new. I think might implement what you just said. Thanks. I always assumed better to put all FD together in one date so easier to uplift. No need to go to bank always. Thanks for the tips

This post has been edited by Ramjade: Oct 23 2015, 12:20 PM

It's also something that I have learnt from the taikor here

Just kaotim Ambank 4.6%. Was considering Ambank and Maybank, decided to go Ambank route due to very low appetite for risk taking in this environment. The only big drawback is the semi-annual interest crediting Had the officer fill in all the forms for me, which was a bonus as I hate form filling Got one miserable umbrella as a gift...pffftttt...

Also learnt that "fresh funds" can mean different things to different banks. Some banks allow you to top up a little RM if you plan on renewing FD at promo rates, some use a % topup. I guess it depends on whether that branch is in need of funds or not.

If you want to boost the effective rates to >4.6%, ask them to credit the interest to truesaver so that your interest is earning 2.8% instead of say 0.05%

If 10k, at 3.15 and 3.25, the difference is just rm 0.83 per month, not even rm1.

Lolz..

Unless we are talking about 1m, then maybe a bit significant.

Bro, you are forgetting that if 100K opt for 3.15%, the banks earn extra free rm83300 just like that. They are richer by rm83300. No need to work hard (give higher interest to attract more customers) and reached target easily.

Monthly Difference of rm100k between 3.15 n 3.25 is just rm8.33

How u derive rm83300 ?? U mean 100k person with 10k ?

100k people who put efd at 3.15%

Tun, u shld look from individual depositor perspective n dun b bz body (i.e. from Bank perspective) unless u r a bodybuilder