The 5 people in the story all ended up with different real interests collected or forgone in lost days because the actual number of days were different. The story is just to illustrate the following operating rules about efficient FD placement:-
1) RULE 1:-Avoid last week of any month to place FD. Becuz when it matures you will a dubious chance of getting the replacement promo then. There is a bigger chance of already reaching quota at end of month. This is not a good day, but a bad days rule of thumb for FD placement operations.
2) RULE 2: Use a calendar to make sure you get more days and interest Make sure you understand when your maturity date will be when you schedule your FD placements. In the story, the difference in interest collected was big when compared to Kiasu who knew how to use a calendar and this rule.
3) RULE 3: Be careful to give extra allowance for things going wrong/offline, too busy or staff problem. Try to avoid last day of promo crush

It is a pitiful to have the best deal/bargain, but to get less for no good reason just because never learn and use good practices.

The story illustrates the question of good days since people did not understand that the main idea was to avoid bad days at the end of the month. This is becuz somebody got the wrong idea that I was talking about specific good days, wanted to know why I am not answering clearly whether there was such a thing as a good day. The answer is:- Depends on which date, how long, when the step rates change following your effective date and the maturity date. Is it relevant? Yes and No, depending on how efficient holding funds are handled. Most times the required principal will take some time to be collected into some temporary holding place like Maybank GIA-i or in very short term instruments, so the loss is minimised. This is what is considered sweep and scrape. Not withdraw the money and keep in a bag to carry to the bank on an extra good day.

The story is useful only for kiasu people and high net worth individuals. However, if funds just happen to be available then, it is up to the individual to calculate whether it makes sense to wait. For most depositors, their promo amounts will be at least 10k or about 500 time less than in the story and so the amount is small and not worth bothering about. The question of losing money while waiting is simply becuz the money is not properly kept in a higher yielding place or there are no fresh income flow.

Think of the future and how many promos you will miss out if you do not adjust your maturity dates to earlier in the month. Don't think short term, don't think about reacting to now. Be pro active and put your house in order.
Start with making sure your new placements are scheduled earlier in the month. Do not wait, any date before last week of the month is okay and good.

If I have 10k 7 days from the end of any month, I will usually forgo extra interest from placing it in a FD. Suppose the FD is 4.5%, I forgo 7 / 365 x 4.5 /100 x 10,000 = 8.63. If I sweep this 10,000 into Maybank GIA-i for 7 days at 4%, I forgo 7 / 365 x 0.5 /100 x 10,000 = 0.96 only. (or other high rate savings account previously).
On the 1st of the month (if not holiday), I place it in that FD if it is still running. Why?

I used to be like you, and did not forgo. Some of my FD were stuck until 7 days from the end of the month, I found I had to miss out on hot high rate FD that reach quota before end of month, so I am only left with the less attractive lower rate FD at that time. So what was the use of bargain hunting for best FD deal when no available money then to place? So to avoid losing out big and regretting, I was more than willing to forgo a little amount to enable me to place in whatever best deal was available later in the future.

When my FD matures on the 1st or any other date to 23rd or 24th, I do not have missed opportunities any more. Becuz of not having never ending fresh funds I changed to this placement policy. Income earners may never feel the problem, so cannot appreciate the problems or solutions faced by those with no fresh income but depend on FD interest. This way, I could play the musical chairs and fresh funds requirement faster and earn much more due to the higher recycling rate and superior choice of FD rates made possible.

Of course, if you are frighten and believe that the FD rate is going down, then you want to place as soon as possible at any time.

On the other hand if you figure out how FD rates happen, you will be more confident.

Somebody commented about the 5 million maximum condition at Hong Leong, so I just use that Big Boss and his friends story since some people find what I wrote too deep to understand. Have to change style for different audience. Actually very simple, but people keep having old stories, assumptions and mixed up between what I write and other people comment off mark. Anyway the story is for those who are in the gigantic league or really hotly getting there.

Bro, you really do not understand.
It is becuz I am not in the gigantic league and not earning (like you). I want my principals to come out in the first 3 weeks of each month so that I have the chance to place in the best FD deal for each month. Without this method, not much chance as don't have money at the right time when the best FD still alive.
What is so difficult to understand or crack head about.
The question was- What is a good day? There are general good days - any day in first 3 weeks. Then there are specific extra good days -but need to refer to calendar. This is for those who need even the tiniest amount or the amount is so big that the financial competence of the person responsible may be questioned. We are usually not too bothered with a few days interest as it is not a big sum..
But the main thing is - What is a bad day? Any day in the last week is bad financial management. Any financial controller placing FD then should be sacked becuz spoilt the future chances.
Foregoing 7 days is chicken feed on 10 k principal, so no need to be so kiasu.

This post has been edited by Deal Hunter: Jun 30 2016, 09:35 PM

If forgo last 7 days in the month is chicken feed, why not put in first and forgo after end of the term?
1) Want the big money in the first 3 weeks so got chance to get the best rate FD.
2) The matured principal may end up in another FD in the last week, and so the disadvantage continues.


This post has been edited by Deal Hunter: Jun 30 2016, 09:40 PM

Maybank has been around for some time and had introduced new types of accounts over the years. Sometimes there is some aspect in a new account that is supposed to be better (well at least according to the staff), so ended up with more accounts.
These accounts can be linked together with the advantage of free instant transfer of any amount within the own accounts. Luckily, I had not bothered to terminate the not so attractive accounts while I tested out the claims of the superiority of the new account.
Hence, bigger sums beyond the transfer limit can be transfered cheaply, instantly and conveniently to other banks by first transferring to the Maybank accounts and then IBFT out to the target bank where you need a SA or CA. All these can be done at your internet connection. For promos, inconveniently, still need to go to the bank to place the FD. This is good enuf as long as our total transfer daily limit of all the accounts is adequate for the placement. Otherwise have to do it another day to add on.
The other way is to write a personal cheque in your name after transferring to the current account for the big sum. This cost a bit more, but there is flexibility in case you need to change bank. This will do for most banks as FD cert issued valid subject to cheque clearing, except some odd cases - effective date still on day of placement, but come back for cert after cheque clearing, or worst case - effective on clearing and collect then.

Not necessary a huge unlimited supply of funds coming out. It is 10k per FD cert.

Not many people know about Bank Rakyat (BR), Affin Bank, Kuwait Finance House(KFH not KFC ), Bangkok Bank or MBSB as places for FD. More like Huh? What?
Is it safe? Not so established? Inconvenient few branches? Where, not here? Any funny inconvenient procedures?
As a result, their FD promos were not exactly hot cakes because of the above even when they have promos head and shoulders above the rest.

Opening savings account in Bank Rakyat with ATM card/internet access could be done first or together when placing new FD account with say 5k minimum in cash for monthly interest payment. Not sure if all branches follow the rule of issuing FD cert after banker's cheque or personal cheque is cleared. Usually use IBFT transfers after having SA - no problem.

For info, Affin Bank usually offers the best board FD rates and is the benchmark for comparison for board and promo rates.
Best monthly interest paying is almost always Bank Rakyat but it dips sometimes when the other banks try to get funds.

This post has been edited by Deal Hunter: Jul 1 2016, 03:06 PM

Yes David, it is true that Bank Rakyat and BSN are not protected by PIDM. Which is why people always ask "Is it safe?"

Bank Rakyat is a Cooperative Bank where all deposits will be protected by the Malaysian Government under Ministry of Finance.
There is no mention of any 250 K limit. So do you consider this safe or safer still if put more than 250 k? In the end, you trust PIDM or ?? more.
To me, it makes no difference. It is only a matter whether the parties will honour their promise.

Congrats on catching the promo in time and getting 367 days interest. Probably close Hari Raya. Don't worry bro. Affin Bank is one of those decent banks that will pay you 2 more days interest at your placement rate of 4.5%.

In general, any placement on a 12 month FD placed on a Friday till end of this year will be uplifted on Monday with extra 2 days involved (unless Monday is a holiday). But make sure you place in a decent bank like Affin Bank and Bank Rakyat to enjoy the extra 2 day bonus interest at the placement rate without any hassle.

Bank Rakyat tempting promo at 4.38% 12mths, mthly interest payment with only minimum 5 k, putting pressure. Quickly open up Affin and collect fast before some customers go back to Bank Rakyat. Good competition.

This post has been edited by Deal Hunter: Jul 1 2016, 05:08 PM

Placed at AB - Bangsar Baru KL earlier, then Affin Islamic Bank SS2 PJ later. Later- after get sms special offer to existing FD customer that they finally have it after earlier enquiry. Confirmed with the SS2 mgr after reading your earlier post. But your AB in Bayan Baru Penang, so do not know if they do different things.

Bank Rakyat is even better in the sense they even have the final total amount (principal + interest) printed on the FD cert. - even if the interest is paid monthly. Standard Chartered and UOB also do this at the branches here.

This post has been edited by Deal Hunter: Jul 1 2016, 11:04 PM

aeiou228
2) For HNWIs, they would have spread out funds in every banks. To micro manage the funds back and forth FD > MBB GIA > FD in order to minimize interest loss while holding the fund till the next calendar month is technically not feasible. HNWI's amount exceeds online IBG limit anytime, OTC between banks is a waste of HNWI's executive time, more so must OTC only in the morning peak hours otherwise be prepared to lose 1 day interest, hence becomes penny wise, pound foolish.

This is the usual problems faced by normal people due to the way banks operate now. This is the old fashion way to do things. Long ago already worked out solution but never tell people. There is a way to transfer big amounts cheap, fast and easy. It is explained in my post Jul 1 2016, 12:38 PM about how I do it. You can also set up your own system if you need to. That MBB eGIA-i thing is eFD so never go there again. Last time like office boy, jalan here and there. Now use internet. You can even instruct bank to do FD without going there and you jalan, sign and pickup printed cert without waiting later at your convenience. If big customer, Bank Rakyat will even come to house/office to do FD things for HNWI.

sandkoh
good points esp number 2. notworthy.gif notworthy.gif transfer limit 10k, 30k, 50k per day depending on banks. lose interest if got to transfer few times/days.

Usually you can adjust the normal default transfer limit on the ATM or internet much higher. If scared, can readjust back down to lowest value which is the default transfer limit after you done your big transfers. If got check account even easier for gigantic amounts.

yygo
Sorry my inglis no good and too vague style. Need writing tips and criticism to improve.

This post has been edited by Deal Hunter: Jul 2 2016, 12:15 AM

At any time, if you have compiled and analysed tables of FD promo rates, there is a wide range between different banks. Banks need some deposits on standby to lend.
If a particular bank had collected enuf for the time being, then it will stop having promo. Or only have a low rate promo to try to retain maturing FD at their bank.
If a bank notices that there is a danger of insufficient funds due to customers taking out matured FD or having early premature withdrawals to shift to a more attractive competitive FD promo, then it must do something like raising their promo FD rate to avoid going out of loan business.
As long as the bank thinks that there are still good loan prospects, it will need to maintain or increase its deposits. So there is always a kind of cycle for each particular bank. During not so critical situations they offer gifts. When get frighten, up the rate a bit. When like going to ICU, offer high high rate.
So it depends on each bank's situation relative to its competitors and the loan marketing. The answer is more like a question - Is this particular bank going up or down according to indicators?.
Please remember that banks are businesses.

Another FD puzzle entertainment story - those not interested please skip. Those interested use your calendars to understand, otherwise lost.

Meeting at Best Deal Business.

Boss Kiasu, "Now we move on to our contingency plan for September 2016. We have no estimate/best guess what the best FD promo will be, so we will use 12 months first and adjust later if anything better shows up. As I understand from our financial trainer Deal Hunter, the smart money focusses somewhere on the 2nd week to somewhere 1 week before the end of the month for practical financial reason, unless there is a need to do earlier for fear of missing the boat as in our plan for 1 July."
The finance guy flips the calendar to September 2016 and projects it. Then he projects the September 2017 from the computer next to it. He says, "Hari Raya Haji expected on Monday 12 and Tuesday 13 and Malaysia Day fixed on Friday 16."
Boss Kiasu turns to his financial controller and says, "You went with me to the "Use Kiasu Kungfu - Get Rich Faster Case Studies Workshop". How are we supposed to deal with this case for 12 months?"
The financial controller replies,
"1) Ordinary days Monday to Thursday - no extra gain - no kiasu points.
2) Normal Friday - gain 2 kiasu days.'
3) Extra Holidays - that is what we are here to work out.
4) Human Factor - make your own luck according to our and others circumstances and behaviour.
So only Friday 9 and Thursday 15 to consider."
"Well summarised", beamed Boss Kiasu. "I concur, now which one?"
The finance guy continues, "Effective Friday 9, mature Monday 11 September 2017, 367 interest paying days.
Effective Thursday 15, mature Friday 15 September 2017, 365 interest paying days.
Obviously Friday 9 is the choice."
"OK, that dealt with point 3, now what about the Human Factor?" asked the boss.
The business manager (grad in Business and Marketing Psychology) replies, "We have to make early booking and show up early on Friday to avoid any missing staff. If there is some slacking in the bank, check clearing may be delayed max up to Monday 19 - lucky for us if the Effective Date is confirmed beforehand as Friday 9."
"OK we arrange our collection and placement for Friday 9," confirms Boss Kiasu.
"Boss, which check we use this time?" ask the finance guy.
"The one giving the highest interest while waiting for our luck to happen," fumes Boss Kiasu remembering the previous mistakes.
"No bank cheque this time. Use the Maybank PMA cheque. Sweep from the holdings in eGIA-i into the PMA account at the right time to maximise interest. Can do from home during holiday," the financial controller explains.
"Okay, that's it. October plan next."

This post has been edited by Deal Hunter: Jul 2 2016, 05:17 PM

Tip- If OK, place FD Friday 9 September 2016 using high interest bearing cheque account. Extra from account and from more interest paying days. Only for those interested in getting more money using FD.

This post has been edited by Deal Hunter: Jul 2 2016, 05:55 PM

Just replying you, though maybe considered off topic by thread owner Ah Siang as it is NOT FD FACTS, but sharing how to work around things in bank transfers and FD operations.

I assume you are familiar with Maybank M2u top transfer limit is only 30k to accounts outside Maybank. Say you have 210k in eGIA-i but at 7 placements of 30k each. You can uplift 30k with interest to each of the 7 accounts for IBFT out a total of 210k. Alternatively, if not already set-up like this, you need to uplift whatever into one of the accounts, and then use Own accounts transfer to shift 30 k into the various accounts (unlimited amount between Own Linked accounts). This method is adequate for most of us.

You can do it even cheaper using IBG if can get up to do it. IBG before 5 am - arrive by 11am. IBG 5-8 am - arrive by 2 pm.

Maybank introduced and promoted many different type of accounts, and I was attracted to open quite a number over many years. Later I realised that each of those accounts could be used for IBFT transfers whenever it was confirmed by the bank that the FD can be placed.

If you can arrange authorisation method, you can even have the bank place the FD for you to sign the forms and collect the cert later. (I am not sure the bank managers will layan just anybody so don't complain). For Bank Rakyat Xclusive member, they have a pickup service for FD.

For higher amounts beyond the number of accounts, or in cases not sure whether you can get the FD placement, the money is collected into the Maybank Islamic Premium Mudarabah Acct (PMA) which is currently best Islamic hibah (interest) statement account with cheque book. Go to the banks of your choice and simply write whatever appropriate amounts in personal cheque. No hassle over bank cheque. Any late clearing over weekend or holidays, you get extra daily hibah interest from your PMA account.
For 12 months - Friday effective date usually 2 more interest days for FD part plus 2 hibah interest while waiting for clearance. Monday to Thursday - usually normal 365 FD days only unless mature on holiday.

Transferring from other bank to Maybank, you need to have a presigned standing bank instructions to uplift into your current or savings account for them to transfer to your Maybank PMA account. There is a small charge for doing each instruction each time but much cheaper and easier than going there just to do OTC. You can then place these in 30k lots or other amount in the eGIA-i.

Hope this is clear enough.

This post has been edited by Deal Hunter: Jul 2 2016, 10:24 PM

raptar_eric and aeiou228
Your questions are off topic.
Linking does not mean computer so smart can accumulate. You link your savings and current accounts, set them to minimum, and then you want to ask cannot transfer full limit each. Mana ada logic. Not easy, even principle and supplementary credit cards program cannot handle grand cumulative total but have fixed limit for each card because transactions can happen at same time.
The idea of linking - so can use 1 ATM card, 1 pin, 1 login can see and do all linked different accounts. With extra benefit FOC instant transfer any amount available (subject to minimum which must be maintained in Savings Account - RM10) within the linked OWN accounts. The total is never shown like in a combined statement.
Of course, I never tried to IBFT 200 k. If you have that kind of money, it is smarter to use the PMA cheque because extra free cash. If you understood the explanation, you should figure that out yourself without being told.
If a reader can be provoked to answer or comprehend the implications and bother to work out the situations in the Big Boss and Boss Kiasu stories, he is well on the way to bigger things. If cannot, maybe just attitude or comprehension problems. So cannot master the subject because not so black and white and all sorts of different situation for a susah straight answer. If say A, then like this happen, then no laku. Not like teaching arithmetic, but how to think. So susah like loyar burok or economist - all sorts of if this or that conditions.

This post has been edited by Deal Hunter: Jul 3 2016, 01:21 AM

Thanks aromachong.

The IBG method is best for Bank Rakyat and Bangkok Bank because of the delay in issuing FD cert pending clearance regardless banker's cheque or personal cheque. Can even set the day the IBG transfer is to be done but I never tested when the fund actually goes.
The other banks where IBG can be used, are where one has an arrangement with the bank manager where you can send an authorisation thru sms, e-mail or fax to withdraw from the savings account for them to place. Of course, you must already have a previous FD account with them. Not first time case. (like I said like loyar condition this and that).
Needless to say, all the above subject to not so big sum involved where PMA cheque takes over due to the extra money gained.

This post has been edited by Deal Hunter: Jul 3 2016, 01:29 AM