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 

I also got puzzled. I guess the HSBC 4.88 for three months effective rate is 1.22...

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

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.

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 for the risk.

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

Misinterprete and uses 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 interpration

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.

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 ____ %

just last question before we agree that we are on different pages (and that is perfectly fine)

another promotion from another bank

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

I cant help but to ask another question.

Why for 1 month, you calculate 4.0* 1months/12months to get effective rate
For 24 months, you did not calculate 4.0* 24months/12months to get the effective rate?

TIME is money in finance. You have to be consistent when involving time in calculation.

Consider to open a OCBC Booster Saving Account, RM30,000 balance will earn you 3.25%pa interest rate, plus your get to Enjoy no lock-in period on your funds with MEPS fee waiver for the first 2 withdrawals every month.

https://www.ocbc.com.my/personal-banking/Ac...ster/index.html

does ambank have the option to open basic S/C withour paying annual fees?

hihi..no internet also? but that means any withdrawal has to be thru counter??

no online, then they give book?

My ambank saving acc is basic saving account with no fee.. but it comes with passbook and also debit card n online banking too.. but I opened this acc since college time.. so, maybe they changed their product now by provide nothing to ur new acc, but I just wonder how they verify the acc holder if nothing was given..

You know that Ambank allows/empowers branches to offer 4.35 or 4.4 for 12 months? It is not standard but branch dependent.

After some arm twisting, CIMB RM said can get 4.4% for 12 mth with monthly interest. For FD renewal. So no need to move to AmBank. 

UOB 4.35%p.a. 12mth, monthly interest to CASA.

Am Bank 4.4? Really? I cant seem to find it.

My muamalat 4.5% matured, looking to transfer else where

https://www.hlb.com.my/ms/personal-banking/...BWCDD18020718B0
HLB Digital Day E-FD on 7July 2018 is 4.37 for 3 months.

AM Bank manager tried to hard sell this. Am Bank special rate FD at 9.88% for 3 months +  Amanah Saham Gemilang by PNB.
Anybody heard before?

9.88% is a sweetener. But for ASG you PNB will charge you 5% on your first deposit with projected returns of 5-7%.