Let me give you an answer (with the intention to solve your curiousity that will eventually kill you, if I did not intervene).

Why would some people rather earn less interest when you can earn higher elsewhere ?  The answer can be found in genxgenygenz postings.  To be precise, the words "chiak beh liao" would explain it all.

At 3.45% p.a., some people's FD would be earning more interest (in absolute terms) in a month than what you would earn in 1 year @ 4% .

For example, 

MR. LIM puts in a RM10million FD at 3.9% p.a.  He earns rm390k per annum, and the bank credits his SA rm32,500.00 every month.
MR. RANJIT SINGH put in a RM100k FD at 4.0% p.a.  He earns rm4k per annum, and the bank credits his SA with rm333.33 everymonth.

For MR. LIM, he may be in a situation of "chiak beh liao" whereas MR. RANJIT SINGH is merely surviving day to day.  Hence, psychologically, MR. RANJIT would be very sensitive to interest rate difference where as MR. LIM would not.  Hence, also why, MR. RANJIT SINGH cannot pathom why MR. LIM do not go for the highest interest rates.

The law of absolutes and reaching the level of "chiak beh liao".

Hi guys, wanna ask something. Currently my fd almost mature and i plan to put in affinbank 4.5% but heard someone say now only 4.2%. My current fd i put it at bsn. bsn promo is 4.5% too i know but then it requires fresh fund. So if i take out the fd when it is mature and instant transfer to another bank, say my cimb acc then i instant transfer back to bsn, so would it be consider as fresh fund ?

the ocbc 15 months 4.3% also comes with a free trolley bag if amount exceed RM70k.
please ask for it.
it's their promo presently.

Instant transfer to another bank then go to the other bank get a bank cheque if possible (most probably the next day and then return to BSN).

I can't see the promotion on the website wor..
can elaborate more?

actually.. i did before like today take out fd from bank X and instant transfer to bank Y and put fd straight away in the same day in bank Y. I feel like it can be done in the same day and with online banking it is even more flexible. Meaning instant transfer at bank X and wait for awhile so that the amount appear at bank Y, then use online banking transfer money back to bank X and make fd in bank X. However, I heard someone mention in previous post where the staff ask him/her to add in another say 1k fresh fund and make the already there about to mature fd look like fresh fund and add with the 1k to qualify for the fd promo.. 

MR. LIM puts in a RM10million FD at 3.9% p.a.  He earns rm390k per annum, and the bank credits his SA rm32,500.00 every month.
MR. RANJIT SINGH put in a RM100k FD at 4.0% p.a.  He earns rm4k per annum, and the bank credits his SA with rm333.33 everymonth.

thanks, no info on the luggage though..
stick to RHB then..

are you sure?

what I meant was lack of info for the brand and size of the free luggage bag..

Let me give you an answer (with the intention to solve your curiousity that will eventually kill you, if I did not intervene).

Why would some people rather earn less interest when you can earn higher elsewhere ?  The answer can be found in genxgenygenz postings.  To be precise, the words "chiak beh liao" would explain it all.

At 3.45% p.a., some people's FD would be earning more interest (in absolute terms) in a month than what you would earn in 1 year @ 4% .

For example, 

MR. LIM puts in a RM10million FD at 3.9% p.a.  He earns rm390k per annum, and the bank credits his SA rm32,500.00 every month.
MR. RANJIT SINGH put in a RM100k FD at 4.0% p.a.  He earns rm4k per annum, and the bank credits his SA with rm333.33 everymonth.

For MR. LIM, he may be in a situation of "chiak beh liao" whereas MR. RANJIT SINGH is merely surviving day to day.  Hence, psychologically, MR. RANJIT would be very sensitive to interest rate difference where as MR. LIM would not.  Hence, also why, MR. RANJIT SINGH cannot pathom why MR. LIM do not go for the highest interest rates.

The law of absolutes and reaching the level of "chiak beh liao".

may i know is eFD really good?
i see the rate not as attractive as promotion FD.

the only benefit of eFD is only flexible and convenience is it?

For him, why would Mr. Lim put in @ 3.9% when he can get RM400k if he can place @ 4%. Is RM10,000 / 12 months = RM833 extra per month not worth it? Well, I can answer him on your behalf. It is because for Mr. Lim who has RM10 mil, RM833 p/m is not critical to his survival nor will it make him much richer.

Unfortunately, this is something that he will never comprehend. Because he isn't where Mr. Lim is yet.

It's the same why some won't understand why I would buy a car for cash instead of taking loan. They think the cash can be used to get >4% FD and pay off hire purchase interest at 2.x-3.x% and pocket the difference. They do not understand the feeling of being debt free from housing or car or any loan. It's like having wings every month without any commitments tying me down. The freedom and reduced stress for me is absolute, as you so put it. But all he would see is, the little gains he could get by trying to make the most of the money available.

It's the same why some won't understand why I would buy a car for cash instead of taking loan. They think the cash can be used to get >4% FD and pay off hire purchase interest at 2.x-3.x% and pocket the difference. They do not understand the feeling of being debt free from housing or car or any loan. It's like having wings every month without any commitments tying me down. The freedom and reduced stress for me is absolute, as you so put it. But all he would see is, the little gains he could get by trying to make the most of the money available.

It's the same why some won't understand why I would buy a car for cash instead of taking loan. They think the cash can be used to get >4% FD and pay off hire purchase interest at 2.x-3.x% and pocket the difference. They do not understand the feeling of being debt free from housing or car or any loan. It's like having wings every month without any commitments tying me down. The freedom and reduced stress for me is absolute, as you so put it. But all he would see is, the little gains he could get by trying to make the most of the money available.

Another factor is trust.
We tend to trust a bank more than another due to convenience, and service quality we experienced as well as how well it is being run.

Also, Mr Lim may not want to deposit in Bank A, even the bank gives him 4.5% if bank A had history run into losses during economy difficult time.

Rate alone is not absolute factor.
There are other consideration and individual preference as well.

Btw, 2.x% car loan, its EIR is more than 4%.
You never can win against Bank by loaning vs FD. 

only for islamic only same rate too.

can put FD into KWSP?

I will put my money in different banks even if getting lower FD rates bcoz the pidm coverage is only 250k per person per bank.

Would like to ask anyone here with experience with HSBC Advance current account. Did you need to close your Advance account to avoid paying the RM10 per month account fee after withdrawing the 5% promo FD?

I transferred all my money out from the account after the maturity of the 3 months 5% promo FD meaning the account balance is RM0 now. So, would the account be automatically closed after a while or do I still need to go to the branch to close it manually? Would I still be charged the monthly fee if I leave it as it is currently. Thank you.