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 ?

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.