Promotion FD won't be much affected by Fed move, but local issue, like OPR, LDR, liquidity etc.
After all, Fed is only expected to raise 0.25%.

If you need/want to place in the coming few days up to months, it doesn't matter much.
Fed rate hike doesn't have direct impact on local interest rate environment, although RM vs USD exchange rate.

Same here, got extra day of interest after the cashier asked the officer.

Diversification for long term, yes.

Hedge against Rm especially for short or mid term? No.
You don't gain much actually if the amount is not significant.

While if amount is significant, there are plenty alternatives which may be more effective and better way or can get better yield compared to foreign currency FD rate that able to hedge against RM.

10 years is considered long term enough. We don't have many x10 years, probably only a few up to around 5.

May explore/post in the foreign currency FD, which we talked plenty previously.
https://forum.lowyat.net/topic/512136/+440

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

This is pure FD, FD interest rate thread.

Ty.

Banks prefer 100 customers with Rm50K, instead of 1 customer with RM5 mil.

As when the 1 customer suddenly (premature) wish to withdraw Rm5 mil, it may cause hassle for bank to borrow 5 mil from interbank to pay for the customer.
Whilst there is virtually not possible for all 100 customer to withdraw premature together.

This especially when promo FD is higher than board rate, and if they launched a promo FD intend to get 1 bil deposit, they do not like to see situation ended with 100 customer x 10 mil, whereby it may resulted customer base is not spread wide enough if no limit imposed.

Fyi, last time, banks did impose Tier 1 & 2 for customer who deposit more than 1 mil, whereby interest rate for customer more than 1 mil is actually lesser than the ordinary one.

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.

Please do not off topic too much, but focus on FD issue only.

We have specific Giro, IBFT thread, can post at there regarding about it.

Ty.

I don't think there is need to "micro-manage" on FD too much.

If the sum is substantial, a few RM won't bother much for them generally.
If the sum is not substantial, a few cents won't make much a different.

Sometimes for convenience sake, we need to give and take.
Time and conveniences sometimes is more precious than spending too much time and effort just for "micro managing" on something.

If IBFT limit is 50K, and you have 100K, just perform IBFT/Giro in next day if exceeding the daily limit, first 50K deposit today, another 50k tomorrow, or just get a banker cheque or personal cheque, with cost of Rm0.53+0.15, a merely RM0.68 cents solve all the hassle, instead want to get many account that enable one to send IBFT/Giro with 100K.

"Conveniences" may save one even more.

There is no issue of talk about IBG, fund transfer, or even OPR, as all are having some relationship on the FD placement/rate.
Just don't OT too much.

There is needless to feel "discontent or whatever" even if your post being reported, moderating team will always act as fair as possible so that the thread is progressing well, and informative to readers.

To the report person,
There is needless to be too strict on the way of forumer posting, and resort to report every post that just slight off the topic.
A little chit chat, OT (not excessive) will always no harm to the thread, and may be good to build up community relationship among forumers in this thread, which eventually more FD info can be shared here.
We don't wish to chase away forumers just because of too strict on the thread itself, which eventually lesser people willing to share the FD info/issues around.

Thank you for all the cooperation.

This post has been edited by cherroy: Jul 4 2016, 10:16 AM

Experienced with one bank separate IBG and IBFT limit one, so totally combined limit can be transferred become 50K+30K.

A foreign bank.

It won't.

If every deposit flock to Bank A.
Bank A will have too much cash, which prompt bank A to stop the FD promotion and back to board rate rate already.

While Bank B, C, D who suffer flee of deposit due to Bank A better FD promotion, may go to interbank to borrow from bank A for short term cash needed.
This is how interbank lending works between them to mitigate temporarily lack of cashflow.

It is the total LDR that matter the most.

Tomorrow, we may see revised promo FD rate across.

The clause is for used to stop the promo FD like today scenario.

If not inserted this clause, people may claim that the offer rate is up until month end or date stipulated in the earlier offer and bank needs to continue to offer old rate if without inserted rate may be revised if OPR change.

The promo FD rate was around 3.7% to 3.8%, if not mistaken.

Actually, before last year second half, when OPR was at 3.25%, the best promo FD was actually around 4% only.
It was LDR shrink to low point at second half of 2015, that prompt banks to offer promo rate until 4.2~4.5% last year end up to recently.

I am surprised BNM makes early move on OPR cut, as I was looking for SRR reduction instead.

Public bank also took down its 6+6 months FD offer in their website around 4.2% one.

Banks generally quick to react on FD rate when OPR being reduced time.
Can say immediate/next day when OPR reduction is known.

The slowness may cause bank a lot of extra interest needs to be paid.

But they generally will react much slower in reduction of BLR or BR.

Banks most are "surprise" on the early move of BNM.
Many predicted BNM only move on Sept, that's why plenty of promo FD previously was targeted to end around Aug.

It may take a while before some new promo rate coming out.
Banks still need to run some promo FD, as a cut OPR won't have much direct impact on LDR.

The high LDR is the reason why banks run FD promo in the first place.
Having said that, the LDR situation may improve with some inflow of fund recently.

Before 0.25% OPR cut, 12 month was 4.20%.
A 0.30% cut.

Same with UOB
Before OPR cut 4.25%.
Now 3.95%.

While so far for other banks that has announced BLR/BR cut one, most cut their lending rate around 0.20%.

FD cut 0.3%, lending rate cut 0.2%....

Unless it is transfer to 3rd party name, I see no issue of big sum transfer.

As for FD promotion "merry go round", you are transferring into your own account in another bank only.