Has been going around for last 2 months. UOB, OCBC also reduced FD promo rates. Affin's special promo rate may not last too long once quota reached.

Sorry, don't have any simple rule of thumb for banks like Maybank if you wish to place effective date in 2016 and mature date in 2017 or later. For those who are particular, or have difficulty to answer for some slight discrepancy raised on the accounts of fixed deposit income received, they may wish to migrate over to a bank that calculates based on 365 days always. In a leap year, they will have the benefit of one extra day interest, thus their real interest rate is nominal interest rate x 366 / 365.

Unfortunately the banks are kinda disorganized without any firm standard ruling from the relevant authorities/bodies even after the introduction of daily calculation of interest on the daily balance in savings. and not everybody had discarded the old approach of 366 days for leap year. It is like thinking that in a leap year, let the bank pay you less per day, and in a non-leap year, pay you more per day. You think this make sense if you were daily paid? This is one of the reforms in bank computing that should be standardized to all 365 days basis as it will simplify accounting and computing matters and reap future benefits like metrication of money. Maybe 4 years for a repeat is something that can be ignored as a small recurring nuisance for napoleons.

That 36,500 is just an example. As long as 365 multiple with the nominal interest rate yield a daily interest to an exact sen, it will do. It works fine all the time regardless leap year or non-leap year for banks using 365 days method. Examples:- 4% get RM 4 per day. 4.3% get RM 4.30 per day,
and 4.5% get RM 4.50 per day. If place 18,250, get RM 2, RM 2.15 and RM 2.25 respectively. Very simple.

For Maybank, you need say 36,600 etc as the divisor is 366 for the placement in 2016. Other non-leap years, can use 36,500. You can actually do this using e GIA promo which you can uplift anytime and the interest calculated on the days. You can take back RM 100, which will earn RM 4 if it remains for another year. Please figure it out for yourself how bigger amounts can shock you.

This post has been edited by Deal Hunter: Jun 24 2016, 05:50 PM

The Maybank answer is just an illustration to okuribito question. Those who had taken up the 4% for whatever short hedging reason/hope may think about the above implications. I am not recommending any such placement. Up to you. Personally I do not even consider any placement below 4.3% for some months already, as I will only place at the best 3 deals at any time.

Why not top deal only? Because need to do musical chairs due to fresh fund and minimum conditions.

This post has been edited by Deal Hunter: Jun 24 2016, 08:07 PM

One more reason of why not top deal. Not all eggs in the same basket.

Good point. But usually top deals keep changing with promos from different banks. The basket case applicable for savings and normal board FD rates.

Any possibility for BNM to join hand with global central banks to calm market fr Brexit shocks by reducing OPR?

My guess bnm will "wait & see" for the situations before making decision on OPR..

How low can you go anyway? Does it really have any useful good effect or will it create other unintended ill effects? Why not just bankrupt the banking industry by making sure less funds remain in the country in the name of helping the economy?

I would happily put my money at Indian FD rates if somebody will tell me how to do it safely. We have AUD, NZ, Euro, US foreign FD at banks but why no mention of Indian foreign FD?

There is. Last year came out on malaysian insider that malaysian Indians are putting their money into India FD as it gain more than malaysia promo FD rates. But you have to fly there.

Thanks Ramjade. The article is not clear whether it is only for Indian nationals or Indian Origin Nationals, or whether other Malaysians are eligible.

But is there something stopping Malaysian banks from having some kind of arrangement to have Indian FDA. Or it is there but not advertised but have to dig it out from the banks treasury people?

What is all this funny talk of financial centre blah blah?? Are they really sincere, serious or sleeping? India and China not big enuf or impt izzit?

Don't just talk about flying there even with AirAsia unless Tony wants to organise flights for investors/tourist package complete with seminar on how to arrange to continue placings and transfers without flying everytime after the first trip.

Anybody with experience to share how this is done?

From what I read those are malaysian Indians who have family/always fly to India. Usually it's open to anyone like how our malaysian FDs are actually open to foreigners. Just need passport.

I wouldn't suggest opening foreign FDs from malaysian local banks as one will lose out on the exchange rates. At the end, your effective interest will be lesser than malaysia FD promo rates. Did that before (open a AUD FD with HLB). Make only about 1-2%.

This post has been edited by Ramjade: Jun 25 2016, 01:12 AM

Bond price up on expectation of central banks lower rates

This post has been edited by wil-i-am: Jun 25 2016, 07:34 AM

I suppose you're referring to what BNM will do, aren't you?

Interesting times. Just hope we don't go into negative rates but who knows???



from http://money.cnn.com/2016/06/24/investing/...global-economy/

When we look at things from the bank's view, the main thing is the cost of funds supplied at interest rates promised to depositors. This is loaned out to borrowers and need to be replaced with new deposits. Consumer debt loans ie property and vehicle loans are expected to be cautious. Infrastructural giant loans affects some banks only. Trade business loans - maybe they do not need extra. Industrial production - not really, mainly internal growth or funds. Shares - ho hum.

As for policy, consumer debt needs to be reduced as a safety measure. Productive loans are mainly not affectable.
Promised rates at somewhere 4.2% to 4.5% in collected promotions. Is the supply of available savings big enuf for lower FD rate to be offered since loan demand seen as softening? Will there be significant outflow for purchase of UK foreign currency or Indian FD? After the current promos will the banks hold enough funds for half year ops?

Looking at these factors, OPR in Malaysia can actually be raised as this is a rather appropriate timing considering the circumstances. Whether FD rates follow up depends on the banks needs and profit margin. If loan rates go up, profit may also be adjusted up, resulting in more tax revenue.

We really cannot simply follow the other economies as our circumstances are so different. Take the opportunity to achieve our policy goals when the circumstances allow and not wait till it is too late.

Please post at economy thread if wish to discuss more about macro economy issues.

This is pure FD, FD interest rate thread.

Ty.

Actually for FD placed straddling leap year, there is an arithmetic solution using common multiple. The answer works fine for currencies from some millionaire countries like India, Indonesia but not so easy for Malaysia's case because of the figure involved. For Maybank at 4% pa the answer is RM 133,590 (365 x 366) which gives ipd (interest per day) RM 14.64 on normal year and RM 14.60 for leap year. For general use for other interest rates, one figure is 2,671,800 (20 x 133,590) or some multiple of it. Try it. No sweat if Rupiahs involved. If want to apply or copycat, need to pay careful attention to look at the nitty gritty and the different circumstances - there is almost nothing equal in actual practice.

This post has been edited by Deal Hunter: Jun 26 2016, 05:31 PM

The following text is from Hong Leong Mach FD:



Why does Hong Leong want to regain the excess interest? Correct me if I am mistaken, but isn't that the more fund I place in FD, the more profit Hong Leong will gain by lending the FD amount to other bank customers? The interest rate I gain is same percentage, regardless of the placement amount.

This post has been edited by kart: Jun 26 2016, 09:35 PM

Actually FD is a liability to them.

If they have alot of reserves in cash, then there is no need to promote their fds.

BSN targets RM3.6bil deposits for Premium Savings Cert this year

http://www.thestar.com.my/business/busines...cert-this-year/