Fixed Deposit Malaysia: 6 Important Things You Need to Know

Kali terakhir diperbaharui September 6, 2023 oleh Shafiq Wahab
Fixed Deposit Malaysia: 6 Important Things You Need to Know

Apart from investing in stocks, equities, commodities, unit trusts, and the like, there is one type of investment that is very popular among investors, namely fixed deposits. Fixed deposits are suitable for those who want to invest for a certain period of time safely because they are less risky and have a certain maturity period to earn profits.

Fixed Deposit Malaysia: An Ultimate Guide for Savvy Investors

What is a fixed deposit? Is it a worthwhile and safe investment? This article will help you identify the things you need to know before investing in a fixed deposit account to make an informed decision.

1. What is a Fixed Deposit?

In essence, a fixed deposit is a type of investment that is held without being withdrawn for a specific period of time. The maturity period of the deposit varies depending on each bank’s policy, and the interest rate offered also varies depending on the maturity period.

For example, if you have surplus salary that is not being used, you can invest in a fixed deposit with an interest rate of three percent per annum if you do not withdraw the money before the maturity period. Fixed deposit interest rates are also said to be higher than those of regular savings accounts, which typically offer only 0.3 to 0.5 percent per annum.

2. Fixed Deposit Malaysia: 6 Types You Must Know

In Malaysia, there are several types of fixed deposits that you can consider. Here are six types of fixed deposits for your guidance and reference:

i. Short-term Fixed Deposits

If you have surplus funds that you want to save but plan to use them in the near future, you can choose to save them in a fixed deposit account. The interest rate or return that you will receive may not be substantial, but it is certainly more worthwhile than a regular savings account.

ii. Long-term Fixed Deposits

If you do not plan to use your savings in the near future, you can consider this type of account. The longer you save your money in this type of account, the higher the interest rate that you will receive. Usually, some banks offer long-term deposit periods of up to five years to depositors.

iii. Islamic Fixed Deposits (Shariah-compliant)

This type of fixed deposit account based on Shariah-compliant principles is very popular among Muslim communities in Malaysia. Depositors or investors are considered as depositors, and the bank is considered as mudharib or profit-sharing party. In other words, the depositor entrusts their savings to the bank for business purposes, and the profits are shared between the depositor and the management. This way, depositors will earn returns without involving any interest concepts.

iv. Foreign Currency Fixed Deposits

This type of savings account allows you to save using foreign currencies. Such fixed deposit accounts are very useful if you want to protect your savings from inflation or other uncertainties.

v. Junior Fixed Deposits

This type of savings account is specifically offered for children aged 18 and below. Most banks in Malaysia offer junior fixed deposits combined with insurance protection and other benefits such as education funds and more for the child’s future use.

vi. Senior Citizen Fixed Deposits

If you are a retiree who wants to protect your retirement savings, this type of savings account is one of the options you can consider. Depending on the bank, this account is specially opened for senior citizens aged between 50 to 55 years old. Additionally, some banks offer flexible fixed deposit accounts for senior citizens that offer high-interest rates and allow early withdrawals at any time without losing any fixed deposit interest on the remaining balance.

how to open a fixed deposit account

3. Amount of Required Deposit

Basically, each bank sets a different minimum deposit amount depending on the agreed deposit investment period. Here are the deposit amounts required by some popular banks in Malaysia for your reference:

Bank Minimum Deposit
Maybank RM1,000
CIMB RM1,000
Bank Islam RM500
RHB Bank RM500
BSN RM10,000
Ambank RM5,000

4. Fixed Deposit Interest Rates in Malaysian Banks

The method of calculating fixed deposit interest rates varies depending on the bank, and it usually depends on the type of savings account chosen. Therefore, it is recommended that you choose the type of savings that suits your needs and abilities because the minimum interest rate will be calculated based on your deposit period, whether it is six months or a year. Below are the interest rates in percentage for some popular banks in Malaysia for your reference:

Bank Percentage Interest Rate for Six Months (%)
Maybank Starting at 2.55
CIMB 2.55
Bank Islam 2.65
RHB Bank 2.55
BSN 2.60
Ambank Starting at 2.30

5. Fixed Deposit Maturity Period

Fixed deposits do not allow investors or depositors to make early withdrawals before the maturity date. If early withdrawal is made, it may potentially reduce the interest rate as stipulated in the terms and conditions. However, some banks offer early withdrawal without affecting the existing interest rate. Typically, the maturity period for fixed deposits is between one, three, and six months or one year (or more) with varying interest rates according to the deposit period. In addition, higher interest rates are also offered if the investment or deposit amount is high.

6. Fixed Deposit Malaysia: How to Start?

Most local banks in Malaysia such as Bank Rakyat, Maybank, CIMB Bank, AmBank, Public Bank, Hong Leong Bank, Affin Bank, and many more offer fixed deposits to all segments of society. These banks offer different interest rates, packages, and investment maturity periods.

If you are interested in investing in fixed deposits, conduct research or identify the type of fixed deposit that suits your needs and consider the fixed deposit maturity period. For those of you who are interested, here are the steps to make a fixed deposit:

  1. Go to your preferred bank branch;
  2. Register and provide the necessary information;
  3. Enter a deposit amount agreed upon according to the bank’s terms;
  4. Verify the transaction.

fixed deposit in Malaysia

Fixed Deposit Malaysia: A Smarter and Safer Investment Method

Each bank offers several investment options with different fixed deposit maturity periods and interest rates depending on the deposit period. You are advised to make the best, smartest, and safest choice depending on your needs. In addition, if you are planning to get the best car insurance in Malaysia with a guarantee of a safe, affordable, and easy purchasing process, visit Qoala’s website, a cheap insurance platform in Malaysia for further information.

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