Both answers are correct as it depends on the situation of the depositor.
For a depositor without current (cheque) or savings accounts, of course it is impossible to credit interest monthly, or even on maturity with principal.
To benefit, pay full attention and understand the details and steps fully.
Open a savings account with atm card and internet banking.
When placing FD, the principal need to be 5 k and above, and for 6 months and above to qualify for monthly payment of interest. You must not forget to specify on placement the savings account number for monthly payment as the default mode is no monthly payment.
For the current FD promo of 12 months minimum 5k, you can only specify for monthly payment if you have either a savings or current account - which you rectify by making one immediately if new to Bank Rakyat.
The minimum amount to be maintained in the savings account is RM 10 (not counting ATM card fee).
Normally, the best options are to credit interest monthly. Principal to credit to savings account on maturity. Do not ever specify add on interest to principal for auto renew as it will be at lower board rate, and you will lose interest if uplifted early to place into another promo later.

At the bottom left of the SIJIL DEPOSIT-i BERJANGKA, confirm that it is printed
51 AKAUN DEPOSIT-i BERJANGKA (IND - MTH) which indicate it is monthly payment of interest.

Bank Rakyat FD program is intelligent enough to adjust the maturity date to avoid weekends and known holidays.
The final amount (principal+all interests) is printed as:-

Adalah dengan ini disahkan bahawa Bank Rakyat memberi akuan dan jaminan akan membayar berjumlah
RM.....xxxxx.xx.......pada tarikh matang yang tersebut di atas kepada:

Depositor name (IC no) OR
Joint Depositor name (IC no)

The guaranteed amount minus the principal (JUMLAH PELABURAN) is the interest. The interest will usually be paid in full in 12 months in this promo. In some cases, due to the extra days, there will be one extra payment on the TARIKH MATANG. All calculations are based on 365 days for the rate i.e 4.38%.

The ATM card and internet banking suggestion is only a convenient help in checking the account and withdrawing/transferring the interests and principal out or for fund transfer in for FD placement. It depends on how a depositor wants to operate and it is not a bank condition to have them with the saving or current account.

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

By the way, it is a bit strange how folks mention end of month. last day of month, or 31/7. To avoid disappointments and mishaps, it is not just doing things earlier when you have the funds. Learn how to use the calendar as a habit.
Friday 29 July is your last chance at Bank Rakyat, as usually not opened for Saturday 30 and Sunday 31 (unless you are in which state?). It pays to pay attention to the fine details especially dates and days in FD operations.

This post has been edited by Deal Hunter: Jul 24 2016, 09:01 PM

True there are Malaysians who love doing things at the last minute. But there are actually two other aspects:-

1) Being kiasu to try to lock the deal or place as early as possible to get interest earlier at the end of the month (before this and continuing).

2) Instant gratification, instead of looking at things at what happens at the end and how it continues on the next move.
That is to say not good chess player or lack of deliberate future planning to ensure a happy continuation-delayed
gratification.

The problem of not catching the last days of a promo only arises when ordinary folks do not understand the implications of the last week of the month and how it impacts on pro FD operations. One should know the right timing so that FD never gets trapped into such end of month situations. Make sure always get the promotion successfully and not trapped in a vicious cycle.

This post has been edited by Deal Hunter: Jul 24 2016, 09:50 PM

I think they didn't really understand Japanese, and I also believe the complaint about Malaysians being bad followers/students of JIT (Just In Time) and a lot of other good ways. One of the markers of an advanced society/person is how well they treat time and dates and its implications financially, workwise and socially, and plan their schedules carefully. The question does actually impact on banking and FD operations. Not only in program efficiency, or speed but also how it must adjust to constraints and conflicts of the bank's particular work SOP but also the general rojak when interacting across.

This post has been edited by Deal Hunter: Jul 24 2016, 11:06 PM

It is best to ask as every bank have different ways and also differ from time to time and from promo to promo.
Usually, there is really no standard or everlasting correct answer.

For instance, Hong Leong Harvest promo (over) with monthly interest for seniors but excluding PB seniors.

But generally, Ambank treats seniors better with monthly interest payments.

Bank Rakyat does not matter as long as meet their 5k or more, and 6 mth or more and specify monthly payment into a CASA account.

For those who use Bank Rakyat FD for monthly interest, the payment is calculated as follows:-

If place principal RM 50,000 at 4.38% for 12 months promo on Monday 25 July 2016.
Cumulative Interest Bearing Days (CIBD) to Payment day 25 of each month.
Interest Due (ID) to month's Payment Date from Effective Date = CIBD x 50,000 x 4.38 / 36,500
Month's Interest (MI) =
Interest Due on this month's Payment Date from the Effective Date -
Interest Due on previous month's Payment Date from the Effective Date.

Mth 8 9 10 11 12 1 2 3 4 5 6 7

CIBD 31 62 92 123 153 184 215 243 274 304 335 365

ID 186 372 552 738 918 1104 1390 1458 1644 1824 2010 2190

MI 186 186 180 186 180 186 186 168 186 180 186 180

Because the principal used is RM 50,000 and the peculiar multiplcation effect of 4.38% and the divisor of 365 used by Bank Rakyat, the above values happen to come out nicely at RM 186, RM 180 and RM 168 (in March 2017).

Normally, the MI figures will usually come out with decimals which can be rounded to nearest sen.

If Tuesday 25 July 2017 does not somehow become a holiday, then there is no extra day/s calculation, as one more column.
This is the most accurate method and can also be adapted for part of the calculation for early uplift of FD and penalty. The basic idea of this method is not to overpay or underpay due to rounding errors up to each payment day i.e the ID figure is most important - How much the Bank owes/should pay in total up to the respective payment dates.

This post has been edited by Deal Hunter: Jul 25 2016, 03:10 AM

It depends on the customer. The FD can be by itself, but you need a CASA if want to have the interest paid monthly, with a minimum 5k principal and 6 mths period. The rate is still the same and the total interest you get is the same regardless paid monthly or at the end (unlike some other promos - where the rates differ).
If you instruct to pay monthly, you can witdraw/transfer the money for expenses, leave it alone to get a little more savings in their savings account while waiting, or remove it for the next promo at Bank Rakyat or elsewhere to get more interest on collected interest plus additional principal at the appropriate time.
The counter staff told me for Bank Rakyat, the total can withdraw/transfer using atm card, ibg, ibft by card or internet banking is 10k per day.

Bangkok Bank at 4.1%, Affin at 4.15% package 2 with free debit card (next yr RM 20).

For Affin, just a debit card, did not ask for any money to put in, only ask what limit for spend each day. Not sure whether it works with ATM for IBG or IBFT or internet at all. Every bank got their own ideas of how to do things.

Second time, so only twenty minutes at both Bangkok Bank for best 12 mths @ 4.1% and at Affin Bank for best 15 mths @ 4.15%. More at Affin Bank but gamble to lock in for extra 3 months for 0.5% extra. Expect different treatment at different branches as usual. Usually I will only pick the best deal unless I miss the offer.

This post has been edited by Deal Hunter: Aug 8 2016, 09:20 PM

According to my informant, 10k. Pls confirm 03-2173 7220 Farid, Julia- Bangkok Bank HQ KL, Jln Tun HS Lee.
Promo to 31 10 2016. 4m - 3.8%, 7m -4%, 10m -4.05%, 12m - 4.1%. 9.30 am to 4 pm Monday to Friday. Use taxi, buses or LRT to Masjid Jamek or Pasar Seni stations to avoid car parking problem. Can try parking at Pasar Seni or Daya Bumi if use car.
First timer will need some days vetting before cheque accepted - 3-5 days before call to collect FD cert. Second time, cheque will be processed very quick, and FD cert issued immediately. No requirement to open CASA. Do not know whether can credit principal and interest into SA on maturity.

This post has been edited by Deal Hunter: Aug 9 2016, 03:18 AM

If you have been around for some time, you should know that conflicting and confusing information, answers and procedures are the only thing you can be sure of happening when interacting with large organisations like banks. Just take anything you were told with a large dose of salt. Remember that things can also change unexpectedly as new procedures may conflict with old procedures. It is also perfectly normal to expect staff and websites to be not properly updated by the banks and third parties are also blur. It does not help that each bank has its own jargon and some words have different meanings and effects.

This post has been edited by Deal Hunter: Aug 9 2016, 02:58 AM

Affin Bank at 4.15% package 2 (not package 1 at 4.05%) if you do not want to gamble for Merdeka promo.

Told by counter staff at HL 6 mth 3.8%, 12 mth 3.95% both at 10k fresh funds minimum effective 5-8-2016 until further notice. No flyer yet on last Friday when do survey.

This post has been edited by Deal Hunter: Aug 12 2016, 05:40 PM

This is one of the banks that do not usually give monthly interest on FD. Affin depends on being at or near top of board rates to attract FD depositors. Will be happy if they change their policy with regards giving monthly interest for FD promos. Specifically, there is NO monthly interest payment for the 4.15% FD package 2 promo I placed with them.

This post has been edited by Deal Hunter: Aug 13 2016, 05:26 PM

FD depositor usually can do a premature uplift before th Maturity Date but subject to penalty. What you need to know is what is your Effective Date of your FD certificate. The other aspect of importance is the tenor i.e the period involved. For short periods, you will probably get no interest at all. For longer periods, you may hope for up to half the promised rate, if the date of premature uplift you plan to do is 3 months beyond the Effective Date. After saying all that, regret to say that different banks/branches may treat things differently. Some places will calculate the half interest based on the number of days from the Effective Date. The divisor may be 365 or 366 or a combination depending on your FD. If interest payments had been done upfront, monthly or on a step-up basis, similar or different penalty rules may apply and deducted from the principal and any interest returned to you.

This post has been edited by Deal Hunter: Aug 14 2016, 06:06 PM

There are other banks but may have some size limits involved.