Read this article today: https://ringgitplus.com/en/blog/Banking-Bas...A-Bundling.html

I saw quite a few members opt for the CASA bundle FD promotion. Have you guys really calculated the effective interest rate? Is it really worth it?

Thanks. Look forward to learning from the gurus.

It was unexpected.

https://www.sinchew.com.my/content/content_2205528.html

https://www.thestar.com.my/business/busines...-by-25bp-to-275

This post has been edited by TOS: Jan 22 2020, 03:29 PM

https://www.theedgemarkets.com/article/comm...mean-high-risks

In case some are lured to these "structured notes" products.

Beware of risk of structured products: https://www.mpfinance.com/fin/dailym2.php?c...&issue=20210426

This time in Mandarin, traditional Chinese, from HK's 明报 newspaper.

I know. Just sharing this as more and more banks start to promote these products to FD depositors in view of the low interest rates.

By the way, structured products are legit, if you sell it to the right person.

You pointed out something important. Hope the depositors here don't lose sight of the declining MYR purchasing power relative to USD and SGD while you are in the midst of chasing after higher and higher MYR FD rates.



It's not the bank. SG banks still pay lower interest rates of below 3% p.a. (although that's quite an improvement from sub 1%-rates 1-2 years ago). https://sgfd.neocities.org/

It's the SG government. Singapore government bonds, bills and notes. They yield similar rates to Malaysia FD for different maturities, or even higher in some cases.

Can check the latest SG bonds and bills rate/yield here: https://eservices.mas.gov.sg/statistics/fda...ssuePrices.aspx

Note the yields shown are market yields, when you apply/bid, you get a slightly higher cut-off yield of 0.2-0.3% higher than the market rate if your bid is accepted and deemed successful.

This post has been edited by TOS: Sep 23 2022, 02:19 PM

One downside with local foreign currency FD account is their transaction fees will cost you an arm and a leg. To move money in and out, apart from TT charges, forex markeups are also another source of profit. In the end, one transaction in and another transaction out, you probably lose the entire 3.7% interest gained, say for a 1-year deposit.

5% FD would mean 6% or 7% housing, car loans etc. assuming 1-2% NII spread for banks.

Are you willing to pay 6-7% interest for your loans?

Rates are double-edge swords. You can't please both creditors and debtors at the same time.

Well, I won't want to make that assumption. But anyway, maybe this is the case for our fellow active members.

There are many types of MM funds. Some are purely FD like in which the funds only invest in deposits of banks with varying maturities, then it's considered purely FD like.

Some however went into short-term commercial papers or treasury bills or even <5 year corporate bonds. Versa and KDI fall into this category.

Government T-bills are still comparable to FD (banks and insurance companies like them a lot). Commercial papers and <5Y corporate bonds are certainly not FD-like in any case.

For example, these are very vague statements. No numbers to support. No detailed fund composition breakdown shown.



Another tip: Whenever you see the word "enhanced" in the fund name, immediately suspect the addition of short-term bonds to boost return. Otherwise, the rates would be no better than FD.

The promotional trick of Versa and KDI is to mix up these "enchanced" products with FD and lure you to think they are comparable to FD when they are not.

Be careful of these marketing gimmicks.

Those got implicit government guarantee.

Our very conservative friends here like PIDM a lot. Here's Sinchew's writeup on PIDM in mandarin:

https://www.sinchew.com.my/20221017/%e4%bf%...90%8e%e7%9b%be/

This post has been edited by TOS: Oct 17 2022, 02:18 PM

Well I already mentioned very conservative.

Your statement risks rebuttal from our fellow HNWIs here.

Anyway, it's good to see PIDM is actively cooperating with and learning from other country's regulators. Teams have been sent to Greece during the Euro crisis while active communication with the BIS is established.

https://forum.lowyat.net/topic/512136/+500

Post foreign FD stuffs in the link above.

Marketing strategy.

It is designed to increase search cost for consumers and introduce inefficiency and frictions into market information, to discourage consumers from searching across so many different banks for the "best" rates.

But thanks to this forum, their attempt has failed.

This post has been edited by TOS: Nov 24 2022, 05:08 PM

FRIA link: https://www.cimb.com.my/en/personal/promoti...imb-clicks.html

FD link: https://www.cimb.com.my/en/personal/promoti...t-campaign.html

You need to login to CIMB Clicks with the links above but not directly from CIMB Clicks' homepage.

This post has been edited by TOS: Dec 9 2022, 10:55 PM

You haven't tried Spore banks yet.

https://www.thestar.com.my/business/busines...ains-opr-to-275

This post has been edited by TOS: Jan 19 2023, 04:34 PM

You guys have done a great job compressing MY bank's NIM

https://www.sinchew.com.my/20230127/%e8%81%...9f%bf%e8%b3%ba/