If you had paid attention to the nitty gritty of the step-up FD calculations, you should know you will not get 4.5% exactly. So if you hope to add all your monthly interests - you will be off.

If your effective date is anywhere from 1-28, (1-29 if covering February in a leap year), the bank does not need to know what is the actual effective date of each customer or placement as the total effective rate is actually the same for each particular month of the promo. Thus say you place in October 2015, there is a real common effective rate for those placing between 1-29 of October 2015. For November 1-29, there is another different effective rate figure, and so on until the promo ends. Undestandably, the banks would not like to tell you that certain months are better or worse otherwise customers may want to choose their months of placement and affect the promo targets.

However, for those who placed on say, 31 October 2015, the interest payment in February is on 29 February 2016 as there is no 30 or 31 in February and the payment must be made once each month. November, April, June and September being paid on the 30th instead. This affects the total number of days for each month's interest payment, and particularly confusing on the change of rate. Hence, the advice is not to place on the 29-31 of any month when dealing with step-up or monthly interest payments. Not only you can be confused, but even the banks may be confused if the staff or programmers do not understand that the number of days and step-up boundaries are affected due the need to pay once each month.

Bank calculate by day not month

There is always limited funds.

It happens to me. PBB step-up paid 6 mth interest, did not know it 2 mths later when checked online SA.

Add:
366 days ------AmBank, CIMB
365 days ------HL, BR (they are still using 365 days for 2016 monthly interest calculation)


Good point !

But for me the placement date is driven by maturity date of FD and fund availability. Hard to say avoid 29-31.

So long as the # of days received the interest then it is fine, for step-up FD's.

This post has been edited by bbgoat: Jun 29 2016, 08:20 AM

Wat is their board rate for 12 mths?

3.35
3.40 for Am50 Plus
http://www.ambank.com.my/eng/rates-fees-charges

This is exactly what I thought about for the effective interest rate of 12 months FD. I am still trying to clarify the effective interest rate matter with its customer service.

FD different from last time as calculation on days basis and not month like savings with out the transactions of withdrawals and deposits.
Creditting of interest no longer at end of month or start of month but once a month as close as possible to effective date.
Differences due to miscalculations/expectations affect cash flow plans for usage or replow into other FD at the highest possible efficiency.
It is can do if got plenty of extra cash income/backup but will not get so much more.
For newbIes, ignorance is bliss since most of us will simply make some wrong assumptions, cannot be bothered to do the calculations, or do not know how to do it correctly. It took me some time from checking on the old step-up and monthly payment promos to figure out what was happening to enable me to work around and get best deals. Previouslly, I made the mistakes, but after reviewing and finding out the effects, I plan the musical chairs better in my favour instead of on luck.

So when is the best time to place step up FD to maximise interest from the banks.

can't believe hlb still practise mandatory uplifting of fd through branch you place.
such an old-fashion way. sigh!

Ok got a question, what sort of rules or terms or laws are there about withdrawing our FDs prematurely, more specifically about whether are we entitled to the interest for that particular new period.

Scenario a, withdraw on the tenth day prematurely on a 1-mth tenure.
Scenario b, withdraw on the sixteenth day prematurely on a 1-math tenure.

Do we get Ny? If we do, st what sort of minimum interest percentage are the banks obliged to give, or is it a big fat zero egg?

Usually less than 3 months big fat zero. If already more than 3 months, usually half the promised interest rate.

Only exception is maybank eGIA-i where regardless when you withdraw. You will still get the full 4% which is calculated daily.

This post has been edited by Ramjade: Jun 29 2016, 04:14 PM

Generally (can be varied), from what I knew,
Deposit less than 3 months, premature withdrawal, you get zero interest, even just a day to mature.
Deposit more than 3 month, you get half of the board rate, calculated on daily basis on number of days completed.

boss, tough la.

please put in lay man language. so uncle goat is wrong. cannot just put in fd. but have to see the best date to put in step-up fd? while losing the interest for days?

This post has been edited by sandkoh: Jun 29 2016, 05:00 PM

went to RHB and enquire about the FDA 4.25%....seems like the quota has reached *sigh*

i cannot understand what he is saying. best date for step-up fd, let cash sit down while waiting and losing interest?

He said there's a specific date each month that if you place step up FD, you will get more. Basically if more people put money on that date, bank will rugi. However that date/time of the month is not specify.

so keep $$ and wait for the special date? then not geting interest for days?

This post has been edited by sandkoh: Jun 29 2016, 05:35 PM

U end up place with which Bank?

didnt place lur..that time when i reached it was at 4pm ady..haha

Have u shortlist which bank?