You need to know money market fund units can also drop in value. It happens in SG.

FD pays out lower interest but in exchange, protects you from losing the principal you put in.

As of 31 Aug 2022, all links below are on archive.ph:-

-- fd

Maybank FD

1M APR = (1.95/12)**12 = 1.97%
1Y APR = 2.35%

UOB FD

1M APR = (1.95/12)**12 = 1.97%
1Y APR = 2.25%

-- mmf

StashAway Simple current projected APR = 2.7%

Toucnngo/Principal Go+ = 2.85%

Versa Cash = 2.5%

KDI Save = 2.25% after above RM 250k, else 3% - this sucks.

FD underperforms MMF especially in an environment central banks are raising int rates, if you lock in the low rate for 12 months, you don't get the flexibility.

FD beats MMF in terms of cash availability, you don't need to wait days before using the $ for emergency, you just lose the interests accumulated. So if you just want emergency fund then just set 1 mo auto-renew.

Some of my MMFs in endowus singapore are -3% currently, maybe the malaysian ones are performing that well, but it surely is not as safe as fixed deposits.

Seems like you guys are right, I was not aware of those FD promotions... also I am not into FD apart from setting it auto-renewing 2-3 months as my emergency fund.

Before 2022 this definitely wasn't the case,

You probably say this because you got caught flat footed on the FD rates. Sometimes it is better to admit you have made a mistake by not putting your monies into FD.

Maybe not stupid products. But generally they get pretty high commission selling you those products. So you are not even paying the market price for those products unless you really know the RM well. Otherwise they are just looking out for their own interest. Well, I am pretty sure you pay less fees buying those products in fund supermarket or something.

Obviously I have one. That is why I know their motivation. In fact I got burned because of 1 before. Let's just say they want to earn money from you without being responsible.

In fact that one recommended a bond from an oil company just when there was an oil crisis.

actually no need to fight. even asnb and many mmf compare theirs to bank's non promo rates.

Let's just say it's a win win situation till something goes wrong.

And I am pretty sure the bank will just wash their hands from the situation. Maybe Malaysia banks are more ethical.

Normally bonds are raised when no banks want to lend the borrower money. So it's pretty risky. It's not as safe as what ppl think unless it's sovereign bonds.

It's pretty funny why no banks want to lend bank Islam any money. Why would they go the more expensive route of borrowing from the public.

Shares are even safer then bonds. Bonds are unsecure loans and will not be treated as important when something happens.

I forgotten but this is my impression of bonds.

A very safe bond probably has interest rates very close to FD rates anyway.

Shares will always get preference to bonds when something happens as the directors etc normally hold stocks and bonds are unsecured loan. So secured loans and stocks will always get priority

Contrary to what ppl thinks, bonds will be the first to be "let" go when something goes wrong.

I understand that bank Islam may not be allowed to raise funds using FD. But then how about borrowing from other banks? I dunno.

Believe me.
The priority for bonds is the last.
That's why they are called unsecured loans.

You think which one will get priority. Secured or unsecured loans?

That's why only when something happen and you realize that even the bank you bought the bonds from will not help you that you will start to realize.

But it's ok.

Actually the company can still function despite defaulting 

Why should the companies pay anything to the share holders in the first place.

Bonds are the last in priority when it comes to debt. A lot of the debts that are held are secured loans and perhaps loans to other entity. You are dreaming if you think the company will pay your bond first before those.

I never ever said anything about shareholders getting paid anything.

But at least when you buy shares, you can buy shares of companies with good financial standing.

With bonds, you are dealing with companies whereby even the banks are not financing them.

But it's ok. Your probably dun even know what you are talking about.

Ppl ask then you give la. Most probably bank negara requirement. When open account with a bank you also need. Kenanga is an investment company registered with SC and therefore anything money related they will need to comply with the requirement stated. Plus some investment esp connected to the bank negara/gov only allow certain ppl to invest. Your know la... Malaysia bah. Not first day also.. 😂 small matter...

On another news... OPR naik 25 basis point!! KDI.. faster up the interest liao

SOS

just deposit to KDI Save this morning.

they (eGHL) finally removed the credit card option from FPX.

too many abusers ... oops i mean accidental deposits with cc

I checked, non of bank cc award point for FPX transaction

And he practically do what the banks do, generate wealth out of thin air…LOL

Btw, anyone make withdr from KDI Save before 11am today? Received your withdrawal? Mine not yet, seems like the slowest among all my withdrawals

I switch to aggressive growth and try 1 month, rugi 80%keep going down.i cut lost , switch conservative now untung 20%😁
The robot no switch fund ? 🤔

Ya is ringgit , wrong calculation .if % I rugi  a lot..

so actually you can deposit into KDI using credit card?

Just to share withdrawal timing.

19/09/2022 09:44 - Submit Withdrawal Request
19/09/2022 16:46 - Received confirmation email that the withdrawal has been process successfully. Transaction marked as Successful in KDi App.
19/09/2022 23:00 - Checked bank account. No money in account. yet. Went to bed.
20/09/2022 07:00 - Money deposited to account.

Like most sifus pointed out, money probably was deposited around after 23:00ish.

Good la. I guess they realised that they are losing money.

something don't seem right with the first example. RM 9 per day for 10k deposit ...to 100k balance after first day 
shocking as coming from a financial firm where decimals are part of daily routine.

Yes, it shows 3.5% on the dashboard details
The 100k is indeed confusing but i kind of got the point, is 3.5% p.a. compounding interest, not 3.5% p.a. prorated on a daily basis

In my case, it wasn't affected by new deposits as I have not made a deposit in awhile.
Meanwhile, by calculation of today's interest accrued, it seems right with 50k @ 3.5% ..... following the calculations provided in the example above.

how dare they cheat us 0.06%

Hmm...I may be wrong, I did a quickie on excel and it came out right for all my accounts.
This is the formula I used. It came out exactly the interest accrued for today :

=ROUND((((50000)*(1+3.5%)^(1/365))-(50000))+(((current value-50000)*(1+3%)^(1/365))-(current value-50000)),2)

*side note, don't forget to calculate the "compounding" factor. Put it in another way, that interest amount will only compound to a total of 3.5% after 365 days. The interest accrued is not linear, starts less and increasing ever so slightly.. So daily percentage is not equal.. Its increasing by the day.

In other words, it's not 3.5% p.a. unless left there for 365 days.

P. A. is 3.5%...but how it gets there is stated individually. Example, FD 12 months, they give it to you by then, but for KDI Save, they did say 3% compounded daily. So they are giving it to you, just not in linear form where its divided into 365 interest payments.

If its still confusing, try putting it as simple as possible into excel, drag it down to 365 days, look at each row, and see the effect of compounding.

(unsure, stand to be corrected)..

I certainly hope I'm right, otherwise I'm cheated as well.. Haha..oh well..

As for me, it's just a temporary placement while waiting, as these funds are meant to be forwarded to further investments. So it doesn't really matter to me the exact interest accrued as long as it's higher then my CASA.

Anyway, to each their own..  have fun..

Ok la still higher than Versa which gives 3.2%
KDI Save so far still the highest for this product.

With the implementation of the new formula, the rate is no longer as advertised. From today onwards, the existing money, that is invested at 3% previously, is actually invested at a lower rate, not 3% anymore. 3.5% is just a cover up. 
Edit: I'm referring to amount greater than 50k.

Read KDI FAQ page. They state effective annual rate. Effective rate in financial terms mean inclusive of compounding effect. There is no cheating or scam, just lack of reading.

But... but... I apply the new formula onto my previous daily records/data. The new formula actually generates lower values. If amount greater than 50k, that's quite significant 
Anyway, already plan to move the excessive amount. Guess Kenanga just want to hasten my decision. 

You are right. Today I made some withdrawal, it showed RM X at 2.95% at the checkout page. Felt weird but didn't bother much until I checked lowyat.
Will move my money away soon.

But even if you deposit up to rm200k, having 3.44% on your first RM50k and 2.95% on the remaining rm150k is still better than 3.00% for the whole rm200k..... plus if we like to move money around and this is just used for parking, then the rm50k is always getting more at 3.44%...

How is this worse off than the earlier rate?

Thank you very much.

Yesterday was my first time i fpx money from my MBB so i dare not put in too much. I will put in more today - as i slowly gain more confidence in their system (Kenanga), i will move more of my MBB fd (mostly 1 or 2 month tenure) to KDI Save.

Only worry for me is how safe KDI Save is (since it hasn't got the PIDM guarantee). At the moment, my eFD from Maybank is giving 2.2% and 2.4% (1 and 2 month maturity) and i would like to move them to Kenanga Save.

Thanks again.

That's a very misleading statement. Lehman Brother's MMF broke the buck before the firm itself went broke, for instance.

Of course that was institutional risk. For MMF that hold short-term corporate credit products like commercial papers, short-term loans etc. there is corporare risk if the liqudiity of the companies are not strong enough. And even before the papers mature their market value may have dropped significantly due to adverse conditions, in which case the MMF will suffer significant capital loss.

These days to "enchance yield", MMFs have already shifted to the riskier end of product offerrings. Make sure you read the prospectus and product highligh sheets to carefully inspect what kind of instruments (and their maturities) the fund is allowed to invest into before dealing any further.

Low risk != no risk

Too often people underestimate risk metrics...

On the dashboard for KDI Save, there are three values - Current Value,  Returns and Net Deposit. I am observing that after certain period, some of the amount in 'Returns' are moved to "Net Deposit". This is making it a bit difficult to track the actual returns. I wonder why they do this. Are others observing the same?

it should be commit. same like other MMF, commit after a month

if any bad news break out for Kenanga investment bank.. then best withdraw to others first.
So far don't have such news.. if scare of risk then don't use. Stick to FD at banks.

right now ongoing issue with Credit Suisse, multiple bad news out also they haven't bankrupt yet. Usually there are signs and warnings before they crash.

Also Kenanga is a public listed.. every detail of their accounts they need to declare.

Got it. For the amount you withdraw, KDI knows exactly how long it sat in KDI hence they can give out the exact actual interest for that amount for the period it was deposited. Hence the interest is considered as paid up.