FD pledges are usually supplemental to your original loan amount but can never be the main security. For example, you want to borrow RM100,000.00 but the security you are giving to the Bank is only worth RM80,000.00, so you are offered to pledge FD worth of RM20,000.00 to make up for that RM100,000.00. Something like that.

You are required to sign a Letter of Set-Off and maybe a personal guarantee for this FD pledge in favor of the Bank and the terms of this set off is that the Bank can deduct the amount anytime from the FD account whenever it deems proper.

So to your question, no. Once you pledge your FD, you are unable to withdraw the amount until the tenure of your loan ends.

FD pledges are usually supplemental to your original loan amount but can never be the main security. For example, you want to borrow RM100,000.00 but the security you are giving to the Bank is only worth RM80,000.00, so you are offered to pledge FD worth of RM20,000.00 to make up for that RM100,000.00. Something like that.

You are required to sign a Letter of Set-Off and maybe a personal guarantee for this FD pledge in favor of the Bank and the terms of this set off is that the Bank can deduct the amount anytime from the FD account whenever it deems proper.

So to your question, no. Once you pledge your FD, you are unable to withdraw the amount until the tenure of your loan ends.