In light of your explanation, let me put forth a scenario.

When SCB previously had a 4.5% p.a. for 15 months, you would then say you have gotten 5.6% of the amount you put in.

If a bank were to give you 4% p.a. for 18 months now, would you then say at the end of 18 months you have gotten 5.9%, which makes it higher than the above?

Your math is simple, but not accurate to the rate that an individual would have gotten. You're purely looking at absolute amount versus amount put in, hence why you said 2.66% is low.

In the same essence, if MBSB gives 4.3% for 5 years, interest is 21.5% assuming no compounding interest. If people were to look at it from this point of view, WOW, 21.5% ... which simple maths as you put it, but flawed to the interest rate earned.

To emphasize, your calculation is not wrong. But it's misleading to say that is the effective rate in my opinion. It is an effective sum, based on the effective rate p.a. of the bank.

This post has been edited by McFD2R: Feb 23 2017, 12:29 PM

Darn it, you posted your question before I finished typing mine

You can do multiple placements of RM30k within the day.

I'm not sure which bank you tried, but Maybank allows multiple FPX.

Maybank Instant Bank Transfers has a limit of RM30k per day. But FPX is different. Though I can't say the same for other banks.

Is FPX from Maybank any different from other banks? I have done multiple FPX within a day, all from Maybank. Even though my transfer limit is RM30k, FPX allows for multiple within the same day. Only IBT or IBG has limit per day.

Unfortunately, my balance is far .... far ...... far from the sky

Credit to savings account monthly. I chose not to renew upon maturity. No compounding interest of course.

Example of 12 months
Other banks : RM10,000 x 4.2% = RM420 (using promo) ... expire,renew again elsewhere
Maybank Islamic eFD : RM10,000 x 3.1% = RM310 (using board rates online) maybe some banks are slightly higher

Is the extra RM110 per annum worth the hassle for you? Not for me. I do not have banks near my office, hence would require me to drive there, find parking, conduct the transaction and go back to office. I'd rather place online then.

What if the FD is RM100k? Difference would then be RM1,100 .. yes, that makes a difference for me.

Worth it or not, is up to how you value your time and the quantum of your placement.

FD returns are non-taxable.

I opted for 4.55% when I was at Affin last week. RM195k FD and RM5k CASA. I am fairly certain they do not have compounding interest, even if they agree to add it back to your FD.

Damn HLB, just placed 6mths 4.28% last Thursday and now 4.38% 12 mths. Bugger .. waiting for my MBB FD to mature on 2nd day CNY and decide whether to go HLB or walk in to Affin again.

Thankfully I've done my last FD yesterday @ 4.3%

At MBSB Bandar Puteri Puchong. Unable to get 4.52% even with 200k amount. 4.48% @ 12 months.

If you can't even post which bank, you might as well don't post.

There are retirees who do not have income and rely on some fixed deposits to live by. For example,

A retiree who has RM1 mil in FD @ 4% pa., will net about RM3,333 per month, maybe for both him and his wife. If his expenses exceeds that, which is possible due to medical or whatsoever, every year, his RM1 mil will reduce. And with that, so does his monthly average returns. When that happens, it also means he has to use more of his savings in FD the following year. It will be a vicious cycle, if there are no means to increase that principal amount.

Now at 2% as an example, his average monthly returns will only be RM1,666. What does that mean, he has to further use his savings just to cover expenses. It will not be long before his RM1 mil is reduced to RM500,000 and his FD returns will only be RM833, if FD rates do not increase.