I'm looking for short term promo like 1 to 3 months... but it seems nowadays everything is 12 months.

btw, what's the economists outlook on our interest rate? rise/fall/stay in the next 12 months?

Thanks for the photo of the Ambank FD offers.

I finished off my survey walk around with another visit to another Ambank branch to confirm on the actual nitty gritty before deciding.

For both offers, the interest is paid on maturity into a CASA account. It is an Islamic TD-i FD and there is no payment of monthly interest. There is no exception, not even for senior depositor.

The 4.08% for 8 months with minimum of 50k is not for everybody but only for Ambank Signature Priority customer. Meaning place 200k plus into CASA first before can qualify.

Nobody mentioned effective rate except you. Frozz and I both know that we will only get 2.666% return on the money put in. The rate p.a. and the effective rate is the same at 4% in the HL offer. The rate p.a and effective rate are only a part of how a deal is considered good or bad, risky, or likely to turn good or bad. Even step rates are considered but with regard to what terms and conditions apply on early uplift before maturity date. We are talking about whether 4% p.a. or 4.08% lock in for 12 months is better than 4% p.a. for 8 months - in the fear that the FD rate after 8 months will be lower than 4%. The question is about choice in taking shorter term FD or longer term FD scenarios.

At the end, I am only interested in the bottom line. How much cash do I get for the money put in - Final amount with all the interests and costs counted divided by the initial amount invested - over a year or 18 months for scenario purposes when comparing FDs of different rates and tenors.

Why should we be bothered with the economists outlook? They are not really talking about FD interest rates are they? There are only a limited number of banks here. Wouldn't an observation or prediction as to how and why each bank is acting and its reaction on FD rates make more sense instead of pointing all over the place?

Hahaha it's not the maths that's faulty, it's the logic that's fubar

Reminds me of the bimbo who was asked how many slices a pizza should be cut into - 8 or 12. She said she'd like 8 because she said 12 is too much to eat...Can't finish 12... LOL

This post has been edited by okuribito: Feb 22 2017, 07:52 AM

this's explain why we don't hire those only good in academics

sifu, ambank pb need 200k, can be in fd, not only casa.

oso, 3 posts in a roll. can be considered spamming. please use "add" reply.

This post has been edited by yygo: Feb 22 2017, 09:02 AM

In Melaka , minimum amount for PB for ambank is RM250K, sure it's 200K?

This post has been edited by drbone: Feb 22 2017, 09:13 AM

Well its very simple ... all banks advertise their interest rate by " P.A. " which means Per Annum, it's a simple english word that means A Year or every Year
which can further mean those 3 mths / 8 mths / 10 mths types of FD at X amount interest when you think logically if you put less than a year do you think banks (aka licensed loan sharks) will give you that advertised X amount interest ? it's marketing tactics !! Even newbie like me knows about it, simple maths people. But i agree it would be much easier if all banks advertise effective rate rather than P.A. the world would be a better place.

with that out of the way, after some very tired "musical chair" playing, decided to make my FD to OCBC Bank 12mths@4%, anyone on the same page as me ? any advice or things to note for this OCBC FD? i humbly thank you in advance.

after check again, 200k is rite.

This post has been edited by yygo: Feb 22 2017, 10:42 AM

Calculation in such P.A. Basis is a standardisation.

U can't expect a bank to publish some 3-5 years promo as smth like 20% ~ now that would be misleading!

Like if a bank offering 5 years promo at 4% - u don't really want that be called 20% return. Cause that is 5 years! Instead of the one year effective rate u are looking at. Hence you look at the overall picture of it being 4% per year. You can just swift the funds the next promo that is offering 4% after current one ends to make it to a year - end day u still get 4%

Anyway- I just lol at the initial statement in the previous pages. No offence.

And yes. I feel like locking it for longer period so that I don't have to bother or move it around.

Less risky than fixed income and guaranteed return.



Confirm 200k in kl... It's part of the T&C in the ambank site...

p.a. is wat pipu used to look at it. y some sifu wan to make it so difficult to understand?

maybank always do that.

is this directed to me or those that i quoted ? as i know how banks works already

Anyhow this is why i specifically mentioned "effective rate" ... which dumb bank would publish something like 20% interest ?? that interest is like playing those money game ponzi scheme already.

you can simply just mentioned 4% every year for next 5 years, DONE ~
but the world is not perfect and there are some bank who would use confusing marketing tactics to mislead customers. *ahem*Maybank*ahem*

Received this from Affin yesterday:

Thanks for the photo of the Affin OMG Combo II packages. I collected their previous OMG Combo yesterday morning from Affin Islamic branch during walk around survey after EPF dividend announcement.

Comparing it appears that the 80% portions:-
Package 1 :- Big jump from 3.78% to 4% for 13 months.
Package 2 :- Big jump from 3.88% to 4.05% and longer by 1 month from 14 month to become 15 month.
Package 3 :- Big jump from 3.98% to 4.10% and longer by 3 months from 15 month to 18 month.

The 20% portions for 6 months did not change and maintained at 3.58%, 3.68% and 3.78%.

Your picture does not show the bundling requirements - whether any, remain the same as before or changed like open or top-up SA requirements which was RM 200, RM 500 and RM 1000 respectively. Are we to assume that they are still the same as before?


I wonder how our real interest, effective interest rate and pizza slicing sifus make comparison or comments against other flat rate or step-up promos coming up soon.

The longer term rates had increased to range from 4% to 4.10% for Affin Bank according to this promo.

This post has been edited by Deal Hunter: Feb 22 2017, 03:27 PM

The effective rate for hong leong is 4.0p.a regardless what is the duration of the FD.
I hope you can get the concept right.

Nice educational joke video, although the pizza example is not relevant to Frozz rant.

In the case of deceptive marketing, there are many differing ways to use terminolgy, jargon, simplifications and examples to mislead FD depositors. Being irrelevant is considered as one of the favourite tactics of cheating beside using lenglui bimbo.

In our case (not the video), the Bimbo orders Haiwaian (aka 4% p.a.)
However, she does not get to order large size pizza but gets cut slices which are all the same size.
She orders 8 pieces of the same slice size (8 months = 2.666% worth of interest)
She does not order 12 pieces of the same slice size (12 months - 4% worth of interest) as she could not eat so much.

OR it can be said that at HL, the bimbo gets a small pizza (8 months), but at OCBC she gets a large pizza (12 months, both Haiwaian (4% p.a.).

Arithmetic cannot be used just any old how. It has to be joined to the correct logic, perception, language, question and illustration. The Bimbo did not grasp the key point that the pizza is the same weight no matter how it is cut as part of the joke video. The questioner merely repeats the trick question with the intention of continuing the joke video. In no way did he try to alter the Bimbo's perception, logic and the question and the language ended up confrontational. This is usually how forumers behave with ridicule and missing/misinterpreting each other's perceptions or points or how jargon is used. With this sort of attitude, a third world mentality is assured because everybody is talking at cross purposes. It is not that the education system is at fault, or that the maths is bad, or that logic is off, or the views and background are different - it is just that no awareness that the problem is not the other person but also ownself not taking steps to handle it.

Skills to grasp in arithmetic and logic does not come naturally, and certainly not logic puzzles or trick questions.

This post has been edited by Deal Hunter: Feb 22 2017, 11:01 PM

Okuribito, if any pizza bimbo here calculates like that, please ask them to refer to you and michaelchang as their sifus for coming up with this misleading special interpretation of Effective Rate.

If you had not been reading properly, the problem is michaelchang's misinterpretation and those who did not read or understand later. The record is as follows:-

Frozz - Feb 20 8:01 PM

isn't HLB promotion (not taking the bonus into account) only 4% p.a. ?
that is only 2.666% since 8 months ... quite low IMHO.

Deal Hunter - Feb 20 10:17 PM

Yes, HLB interest is actually 2.666% of the principal as you figured 8 /12 x 4 %. It is up to the FD investor whether any luck to make another 4 months worth at 4% or end up with a higher or lower rate.

I agreed with Frozz that ACTUAL INTEREST is 2.666% of the PRINCIPAL which Frozz says is quite low.

michaelchang - Feb 21 5:28 PM

Because it's 8 months @4% interest the effective rate is 2.666??? If malaysian standard of mathematics is at this level, we are doomed to be 3rd world country for a long long time

Misunderstands and add on irrelevant jargon of EFFECTIVE RATE which was not in discussion at all till he puts this in.

Deal Hunter - Feb 21 11:25 PM

Nobody mentioned effective rate except you. Frozz and I both know that we will only get 2.666% return on the money put in.

okuribito - Feb 22 9:37 PM

Pizza bimbo reads this thread & learns that "effective interest" is calculated as "2.666% of the principal as you figured 8 /12 x 4 %" if the deal is 4% for 8mths

which was not what I wrote, but your own wrong interpretation of a discussion on actual interest (not effective interest rate)

This post has been edited by Deal Hunter: Feb 23 2017, 12:27 AM

wow so much drama here ... how did my "that is only 2.666% is a little low IMHO" turn into bimbos and pizzas ?
why am i also getting hints that i reported someone's post too ? i welcome all opinions and live in peace, do not have the time to report people
i only mentioned the E.R. for HLB is on the low side in my opinion, what say others ? suddenly bimbos and pizza comes in ... nice jokes

@deal hunter ... seems like you are the only one who gets what i am saying

even after i kindly break it down for you ... well if you say so pal cheers whatever floats your boat


Interest Rate = Interest rate / Marketed Rate
Effective Rate = Actual interest Rate you finally get which will be used to multiple with your deposited amount (some banks have started using this term like Maybank 3.91% rate promo)

Your definition of effective rate sounds correct but your understanding was not correct.
Just to be on the same page, what do you think is the effective rate per annum for the following case

1 month FD promotion, 4% per annum.
The effective rate per annum is ____ %

it's simple math pal, all banks follow the standard defination of P.A. or Per Annum
but when less than a year they will go by ratio of months you choose for your lock in period.

so taking your example

" 1 month FD promotion, 4% per annum. "

would translate to

Interest Rate = 4.0% (as marketed / mentioned)
Effective Rate = 0.3333% (the ACTUAL interest rate you would be getting that will be used to multiple with your deposited amount as it's only 1 month)