Can change Bank Rakyat Maximun Daily Transfer Limit up to 50k recently.

Affin have their own special way of calculating interest/profit from long ago. Usually less 1 sen from whatever calculated or rounded figure at maturity regardless payment monthly or at maturity. This is all part of the overall general disagreement/confusion among bank programs on how to pay periodic payments or full payments based on days of interests paying days. But in Affin case, it could be the original programmer coded a 1 sen deduction long ago because want to truncate but had some doubt whether the truncation is valid for most cases but not valid for some cases.

For example 12.33, 12.34, 12.35 manually, but was this from 12.3678, 12.3399 or 12.3402, 12.3456 which should be 12.33 or 12.34 respectively. This is assuming that the people were thinking manually and figured that a 1 sen deduction would make sure that the bank will stay ahead when it comes to rounding adjustments which at that time, nobody had an decent/foolproof method. Some people don't even agree that the rounding should be exactly up from 0.005 to become 0.01.

If you meticulously record and scrutinise you interest/profits paid, you will discover strange ways/margin of error/adjustment involved if you reverse calculate.

There is a fair and proper way, but ABM, BNM, banks and customers and coders either don't know, never taught, or even think about it, or if they did, they might have rejected it as it requires all parties to be educated just like calculation on daily basis versus old style interest calculators- since it means 3 calculations intead of 1 calculation- which is a big deal in pre or early computerisation days.

In principle to be fair to both customer and bank, the total interest due and to be paid should be the calculated total interest truncated to the sen. ie. if I=PxRxDays/365 = 123.4567... then it should be 123.45. It should not be rounded up, otherwise it is asking bank to give money they did not earn. Some banks however in practice round it to nearest sen. Just think of it practically as if the bank is an executor or share registrar, which receives a fixed amount of money for distribution to heirs or numerous shareholders. Is he supposed to cough up the extra sens due to rounding up or make a troublesome supported claim later detailing those who rounded down versus those who rounded up (which may not be entertained)?

When it comes to periodic payments and extra payments after maturity, the coded calculations by banks generally do not have any rational or properly thought out basis of the effects over periods of time. We all know banks are conservative most of the time and do not think out of their box usually and change does not come easily unless imposed by a central authority or from following some foreign bank expert or system.

In principle, the fair way is

Total Interest/profit due on this payment date (as calculated above) - Total Interest/profit due on previous payment date.

Using this method, the customer will always receive payments that will finally add up the Total Interest/profit due.

This way of calculating can work regardless using truncation (as suggested here) or by using round to nearest sen.

There is no need to do payment adjustments at certain dates or at the end to kind of balance out the rounding discrepancies.

There are some banks that will simply make the periodic payments according to their style, and if you add all the payments up, there is some deviation which is ignored even if there is some kind of statement that the final amount or interest/profit should be a certain figure (which is not actually the real case then).

The following example illustrates how it looks like in practice:-

Principal= 12,000
Profit Rate = 2.80 %
Tenor = 18 months from Oct 2021

Total Profit due on March 2023 = 12,000 x 2.8/100 x 516/365 = 475.0027.. = 475.00
Total Profit due on April 2023 = 12,000 x 2.8/100 x 547/365 = 503.5397.. = 503.53
Payment for April 2023 = 503.53-475.00 = 28.53

The above illustration is from Bank Muamalat eFD promo.

The final total promised profit is rounded to 503.54 (round to nearest sen rtns).

The monthly payments is calculated 12,000 x 2.80/100 x Number of days for the month/365
according to their payment method used in previous FDs.

In April 2023, the 31 days of profit would normally be 12,000 x 2.80/100 x 31/365 = 28.5369.. = 28.54

However, Bank Muamalat does final month adjustment in previous FD.

If they had paid generously at rtns each month, the total for the 28 months would be 503.60.

But since they adjust for the promised profit, so adjust 503.60 - 503.54 = 0.06
So April 2023 payment will become 28.54 - 0.06 = 28.48 after adjustment.

In the case of Affin, what would you expect if

Principal = 36,500
Profit Rate =2.58 %
Tenor = 181 days

36,500 x 2.58/100 x 181/365 = 466.980000 = 466.98 exactly
or 466.98 - 0.01 = 466.97

Should Affin claim that 466.97 is a fair or proper way of handling the rounding issue?

Why you simply believe the bank staff explanation? I do not even have any eFD with Affin, only many OTC FD from decades ago till now. Why not you check out the validity of the explanation with various figures, whether you get differences more than -1 sen?

It is only coincidental that some particular mix of principal, tenor and rate will give rise to noticeable -1 sen difference. It depends on the exact profit involved which for most FD depositors simply varies without any preplanned reason with their principal. If you want to test any particular bank, I would suggest you simply place exactly 36,500 as principal. Then if the rate is say 2.58 % and the number of days is 181 days, then profit is 2.58 x 181 = 452.50. It always works out exactly to the sen unless the rate is 3 decimal say 2.588 x 181 = 468.248 where you may need a principal of 365,500 to give 4682.48.

This method of placing optimised principal is designed to test and confirm that the bank will give the correct profit regardless whatever truncated, rdns or rtns or other calculation method used except it is less 1 sen at Affin. It is a method for people who want certainty in their periodic profits or profit on maturity. It is one of the reasons why all banks should adopt 365 days as their divisor instead of confusing matters with 366 days in leap years in their calculation of interest/profit.

If the IT department or vendor had followed the method explained to you by the bank staff which was the usual manual shortcut method - determining the Interest Per Day (IPD) ie Principal x rate / 365, and then determine the the profit by multiplying with number of days - the final result will always be lower.
Most people are not aware that when it comes to calculators and computers, the sequence of calculation is what determines
the correctness of the calculation especially when it comes to division or ratios. Thus 10/3 = 3.3333.. and then x 3 will never reach 10 again if one truncates the answer. But 10 x 3 = 30 and then divide by 3 will give 10 again. It is not how powerful or how many figures, a computer can handle, but the ignorance of the coder or the person or bank staff to calculate in such a way.
Thus always Principal x rate x days first, and then only divide last to give the correct result.
Always remember that normal algebra is not always applicable to calculator/computer calculations to avoid computing mistakes.

Typical recycling of previous T&C without careful editting of all necessary dates. If read other bank T&C, can see many recycling errors like calculation examples and obsolete or non-applicable conditions from the past.

Thanks for the link.

Can read that it is OTC for FF deposited within last seven days with monthly payment of interest at 2.5 % for 12 months. But only 1 placement of between 10k to 5,000,000 allowed at specified on particular Saturday for each specified UOB bank branch.

However, the link on the webpage for the Saturdays and branches still go to the previous February 2022 Saturday promo which had not been revised/updated for this promo. Very typical problem when looking for info on bank promos - don't know why UOB and other bank managements keep sleeping and seemingly unaware of how badly their web promos and info is badly promoted.

Thanks for the info. But is it mentioned in the promo links or are we talking about the same Saturday promo since you visited on Friday 11 and not Saturday 12?

Took BR 2.8 % promo FD for 2 years with monthly payment. Can just fund nasi lemak or roti kosong with teh at stall for next two years.

Minimum is RM 10,000 per FD deposit for the promo rates. Can put as many FD deposits of at least 10k each for one account or under various joint FD accounts as you wish for the 2 promo offers. Promo supposed to end on 9 July 2022.

Bank Rakyat highest board rate is just 2.5 % for 5 years in comparison to promo 2.6 and 2.8 %
Placement is OTC only and with certificate issued when fresh fund creditted into your SA with BR, or on giving a personal or bank cheque on date of placement. (If bounce, the FD cert treated as not valid, so no longer wait for clearing business and collect cert later).

Can specify the Saving Accounts you want monthly payments to be creditted into for each FD, or opt for payment only at maturity. Monthly payments can be withdrawn either by ATM card or transfer to SA at other bank with higher interest rate. This is useful for own use, earn better extra interest, or for collecting payments to make another FD before maturity. It does not make any financial sense to keep till maturity to collect the interest since the transfers can be conveniently done by internet banking through handphone or PC/laptop.

With the ongoing war in Ukraine, is there any likelihood of an increase in the rate other than in Russia? What do our economists think? Is the price of bread and flour going up, or are our fertilizer prices affected for rice and palm oil or veges other than petrol?

With the ongoing war in Ukraine, is there any likelihood of an increase in the rate other than in Russia? What do our economists think? Is the price of bread and flour going up, or are our fertilizer prices affected for rice and palm oil or veges other than petrol?

Will US still do rates hike, or even EU? Isn't this all outdated old stories and plans before Ukraine invasion? Are US rates hikes still considered the right thing to do nowadays? What is the reasoning behind it? Wouldn't it be more likely that they become paralyzed and dither about rates hike when asked to decide in present situation and possible near future economic situation?

For BNM and Malaysia politicians influenced policy, one working perception is very simplistic. Don't do anything if possible, change only if forced to do so in reaction to other countries changes, keep the borrowers happy, savings and FD savers are mainly non B40 and non-oren rich fags and thus no wish to raise rates for them.

Please advise if have any evidence/opinion/survey/analysis that the people, bankers or economic pundits do not hold to the above perception about how BNM and politicians actually make decisions, so that realistic plans/strategies can be made about what to do with Malaysian funds.

Bank Rakyat promos
12m @ 2.6%, 24m @ 2.8% OTC can choose monthly payment of profit or on maturity.

Affin Bank Invikta OTC promos
12m @ 2.55% for 50k < 250k, @ 2.6% for 250k up.
profit on maturity.

18m @ 2.58% for 50k < 250k, @ 2.63% for 250k up.
profit payable 6 monthly.

24m @ 2.63% for 50k < 250k, @ 2.68% for 250k up.
profit payable 6 monthly.

28m @ 2.65% for 50k < 250k, @ 2.68% for 250k up.
profit payable 6 monthly.

38m @ 2.78% for 50k < 250k, @ 2.78% for 250k up.
profit payable 6 monthly.

Hong Leong Bank eFD, efD-i promos thru FPX, min 10k

3m @ 2.15%
6m @ 2.25%
12m @ 2.35%
18m @ 2.50%
24m @ 2.75%

Hong Leong Investment Account-i (TIA no pidm)

3m @ 2.25%
6m @ 2.35%
12m @ 2.50%

Ambank - no promo news out yet besides old 70 FD:30 CASA promo still running.

That 2.58% is only for when Ambank calls up when FD going to mature. Probably nothing to do with the expected promo for April 2022. Anyway 2.58% is still below Bank Rakyat 2.6% for 12 months.

FD promo rates today

AFFIN promos due to end on 10 May 2022, min 10k.
3m 2.10, 6m and 9m 2.35, 12m 2.50, 18m 2.58, 24m and 28m 2.63, 38m 2.73.

AFFIN Invikta promos due to end on 10 May 2022, min 50k.
3m 2.20, 6m and 9m 2.40, 12m 2.55, 18m 2.63, 24m and 28m 2.68, 38m 2.78.

AMBANK promo from 1 April to 30 June 2022.
For min 10k, 12m 3.40 bundle 70:30. Interest paid normally on maturity, but monthly for FD Plus (50 yrs+).

BANK RAKYAT promo 12m 2.60, 24m 2.80. Can opt for profit paid monthly.

HONG LEONG FPX promo 3m 2.15, 6m 2.25, 12m 2.35, 18m 2.50, 24m 2.75.

HONG LEONG Term Investment Acct-i promo (no pidm) 3m 2.25, 6m 2.35, 12m 2.55. Internet placing from money in existing CASA thru HLConnect.

MBSB promo bundle 70:30. 6m 3.48, 9m 3.55, 12m 3.72, 18m 4.01.

OCBC no promo according to call centre.

UOB promo from 1 to 30 April 2022. Min 10k, 12m 2.45, interest paid monthly.

Milo tins, pillows? So old style ? Not following leading way - use suitcases ready to go?

This post has been edited by oldkiasu: Apr 10 2022, 11:03 AM

BANK MUAMALAT OTC and online at i-muamalat from 15 April to 15 October 2022, minimum 5k, profit payment options monthly, halfyearly or on maturity.
6m 2.25, 12m 2.43, 18m 2.63.

On Thursday 5 May, BR still at existing OTC promo rates till July 7 at 2.8% for 2 years and 2.6% for 1 year, minimum 10k.
BNM looks like huge supporter of cheap loans, so surprise if up the OPR.
Likely it comes down to what the banks think they need to do themselves about the FD promo rates as against the FD board rates.
So just hope for good news although feel quite pessismistic about whose interests override others at MOF or BNM.

Stable currency or cheap currency?

What kind of investor is that? Do you mean speculator?