next 5 years interest rate around 2% huh

guys, if pidm coverage is 250k, so is it better to put 250k fd, or 240k since there will be interest and im not sure if interest will be covered

now FD very low?

I teach high school economics and usually when we teach about the type of accounts we will say FD is high interest account, but now I don't know how to continue teaching liao 

BNM (and ALL central banks) is copying USA FED to keep rate ZERO in the so call effort to spur the economy. It all sound good on paper... but did they really study how it works in the real world? People with $$ getting less interest will MORE likely to keep whatever peanuts they received from their banks deposit and spend even less. It is such CRAP to say lower the rate and make people to spend more and help the economy, such rubbish!! Case in point, did it work in JAPAN? for over 20yrs?? Is it working in EU?? History will tell us who is right... and so far, I think I am right in saying this train of thoughts to FORCE people to spend more with less income from deposit is BS! Show me the prove that people actually spend more in such situation please.

BNM very sad... blindly copying others without doing research. Probably... monkey see monkey do.

In addition, asking people to spend more when they r not getting more from deposit is a recipe for disaster. If we following the westerners way of thinking... keep spending and NOT keep in bank as u suggested, when we r too old to work to earn income, who is going to feed us? the government? PLEASE lah!!!

What can BNM do? LOL... if I got the answer, I will be the governor myself, don't u think? But, I get your point that i am not being constructive. Just criticizing without giving answer is not helpful. But, it really not my job to find an answer for the person who is suppose to find the answer, or else y is she in her job? Anyhow, cutting rates to ZERO does NOT seem to work as evidenced by Japan and EU. Worst, it created more and more debts which will likely NEVER be paid back and hence the banking sector will be burden with more and more bad debts.

Will raising the rate help? Probably not either.

What I would do? Just keep rate where it is. I know your argument is that lowering rate is the least harmful of all options. But, you r hurting all the savers AND you r creating a bunch of over leveraged biz and individuals. Yes, keeping rates high will most likely make a lot of these overly leveraged people and biz go bankrupt.... but, their debts & assets will be priced lower and savers with $$ will come in to pick up and pay back the loans and hence restore the balance and clear the market so that there is NO big built up of debts. The savers will be rewarded for being prudence and the overly leveraged will be penalized.  I know it is hard to do and u will be scolded by MOST people because they will lose most of their capital, but, hey, they over leveraged and should pay the price for not being prudent. This is how a free market should work. Somehow, somewhere, westerners have started to distort the free market so that people feel less "pain" but inadvertently (by purpose or not still can debate) created massive massive amount of bad debts. Some argue that Covid is not the fault of the borrower, and they should not be penalized. LOL. Nothing in this world should be taken for granted. When borrowing, u did not leave enough margin for the unexpected and now say you should not be responsible?

So, there u have it, u don't have to "spur" the economy. U just need to let the markets do its job and clear the rubbish and the economy will go from there. Yes, Pain now and Gain later. But, in this internet age. We cannot wait for later anymore, can we?

To be clear I stand on the side of the savers because first I am one. Second, they did not reap the huge profits from leveraging in the good times when thing are booming. Why when things are bad they have to suffer as well?? make no sense. In a way, the new western thinking is encouraging irresponsible risk taking. Good times, i win, bad times, I also win.

A good reminder on how long our funds can last in paper generally for food & daily expenses.  If campur things like car and house repair, medical, some holiday, misc expenses like cucu wedding, birthday, etc memang last half the time saja.

you shouldnt expect rm3333 per month is enough for your food for next 20 years ..

Just want to check with readers whether old financial advice/rule about savings in Malaysia still valid or outdated?

Got spare cash with no immediate use, planned scheduled payments or emergency backup use:-

A) Put in best FD promotions/investment with highest effective rate in bank which performs well and safely.

B) When the best promo rate is below 2.5 % p.a., the spare cash should be deposited into EPF and not into bank or fund.

Please share whether you have other rule variations or improvements of your own or heard from your elders or other financial guru.

My fixed deposit is almost 7 years already. If I renew it, will it retain the old interest rate or will it follow a new rate?

Looking back, has depositors ever lost their money in fd or saving a/c before due to banks having financial problem?... Like during Asia financial crisis or any sort of that?

Why bring up old news though?
99% of retail depositors but that remaining 1% depositors in aggregate probably have like 30% of total retail deposits in the banking system

Hi sorry for noob question, i tried to open an e-FD in RHB via FPX transfer from another bank. However it seems that they only allow max of RM30k to be transferred/day. If i wanted to place 100k in FD does it mean i have to do it in multiple transactions over multiple days?

Although i could do it OTC but then it wouldn't qualify for the current RHB e-FD promo. Any suggestions?

Maximum per account are RM$100 million

Bank Rakyat despite being a coop is also under purview of bnm and bnm under purview of mof. Pidm definitely not protected but chances of failure very  slimlah. First bnm will never want to see any Banks fail since it is public money.secondly, BR loan profile is mainly personal lending to govt servant via salary deduction which has very low npl. Highly unlikely can fail

Don't believe it to be true?
That story was also published in the S'pore police Web too

https://www.police.gov.sg/Media-Room/News/2...ed_deposit_scam

Just like so many scams of almost the same modus operandi that keeps on happenings too. (like loves scams, parcel scams, Macau scams, etc etc).. This fd is kind of new... For no one believes it.

Using 100k and Affin again as an example, at 6 mths, you would get RM1,365 (100k x 2.73%pa / 2). If one NEEDS to use this RM1,365 at month 6, one needs better financial management. RM1,365 x 2 = RM2.730. Instead of RM3,050 after 12 months. If I was a retiree, I would have planned to have enough resources for a minimum 12 months, rather than relying on monthly, quarterly or half yearly returns.

My example were merely to state that a person's returns when placing 6 mths or 12 mths, can be higher if one look at the bigger picture, instead of focusing purely on fear of rising OPR.