These Fixed Deposits Offer The Highest Returns In 2023
Financial experts recommend that we put aside money for contingency for a rainy day. However, putting the money in a savings account may see its value diminishing against the rising inflation rate.
At the same time, putting your money in investments like unit trust, real estate investment trust (REIT) or stocks may not be liquid enough when it comes to emergencies. The next best thing is a fixed deposit.
A fixed deposit is a bank account that lets you take out your money after a fixed period of time and generally gives higher yields than an ordinary savings account. Most banks in Malaysia provide their own deposit products, so it can sometimes be difficult to determine which deposit products you should consider.
Besides that, the Overnight Policy Rate is now at a relatively high 3.00%. This means that you will likely be forking out a little extra to pay off your loans and debts owed to the bank. On the other hand, it is possible to see a small rise in fixed deposit rates as well.
So to help you get more out of your savings, we’ve combed through the market and found the best fixed deposits in Malaysia this year.
Fixed deposit promotions
First off, here are the fixed deposit promotions you’ll want to take advantage of this season. These promos offer better-than-average rates, but you’ll generally have to place a higher minimum deposit.
| Bank | Promo until | Min deposit | Tenure | Interest rate |
|---|---|---|---|---|
| BSN Term Deposit-i bundle | August 15, 2023 | RM5,000 with a combination of Term Deposit-i (TD-i) and BSN SSP Platinum products (Placement Ratio=70:30, TD-i : BSN SSP Platinum) | 6 months | 5.88% |
| CIMB Bank (eFD/eFRIA-i campaign) | July 10, 2023 | RM1,000 | 3 months 6 months 12 months | 3.58% - 3 months 3.88% - 6 months 3.95% - 12 months |
| Public Bank (eFD via FPX campaign) | June 30, 2023 | RM5,000 | 3 months 6 months 9 months 12 months | 3.65% - 3 months 3.90% - 6 months 3.95% - 9 months 4.05% - 12 months |
| RHB Bank (Unit Trust & FD/Commodity Murabahah Deposit-i (Requires customers to also invest in selected unit trust offerings) | June 30, 2023 | RM30,000 | 1 months 3 months 6 months | 21.00% - 1 month 9.60% - 3 months 6.70% - 6 months |
Comparison of fixed deposits accounts
Besides seasonal promotions, we’ve also put together a list of the highest-returns fixed deposits to fit your needs. Read on for more information about each account.
| Best for | Bank | Tenure (months) | Interest rates |
|---|---|---|---|
| General savings | HSBC Time Deposit | 1 - 60 | 2.50% - 3.45% |
| Low ballers | Term Deposit-i | 1 - 60 | 3.00% - 3.90% |
| Kids | Hong Leong Bank Junior Fixed Deposit | 1 - 60 | 2.05%- 2.45% |
| Senior citizens | AmTDPlus-i | 3 - 60 | 2.33% - 2.70% |
1. For general savings: HSBC Time Deposit
| Tenure (month) | Interest rate |
|---|---|
| 1 - 2 | 2.50% |
| 3 | 2.70% |
| 4 - 5 | 2.75% |
| 6 - 9 | 2.85% |
| 10 - 17 | 2.90% |
| 13 - 23 | 3.00$ |
| 24 - 35 | 3.10% |
| 36 - 47 | 3.20% |
| 48 - 59 | 3.35% |
| 60 | 3.45% |
The minimum deposit for one-month tenures start at RM5,000 while you need RM1,000 for two-month and above tenures. If you need somewhere to stash your cash for a few years, the HSBC Time Deposit offers one of the highest interest rates. However, it offers slightly lower rates for shorter tenures.
If you’re interested, you can open an account completely online.
2. For the low ballers: MBSB Term Deposit-i
| Tenure | Interest rate |
|---|---|
| 1 month | 3.00% |
| 2 month | 3.05% |
| 3 month | 3.10% |
| 6 month | 3.20% |
| 9 month | 3.30% |
| 12 month | 3.40% |
| 15 month | 3.45% |
| 18 month | 3.50% |
| 24 month | 3.55% |
| 36 month | 3.60% |
| 48 month | 3.65% |
| 60 month | 3.90% |
3. For the kids: Hong Leong Bank Junior Fixed Deposit
| Tenure | Interest rate |
|---|---|
| 1 month | 2.05% |
| 2 - 3 month | 2.15% |
| 4 - 5 month | 2.20% |
| 6 month | 2.20% |
| 7 - 11 month | 2.30% |
| 12 - 60 month | 2.45% |
If you’re looking for a fixed deposit account to open for your child, consider the Hong Leong Bank Junior Fixed Deposit. You’ll need a minimum deposit of RM1,000.
This account doesn’t offer the best interest rates, but it’s flexible enough to accommodate periodic withdrawals. With this account, interest is calculated daily and paid monthly. You’ll be able to make early partial withdrawals from your account and still earn interest on your remaining balance – other accounts may penalise your interest returns for doing so. Additionally, many other junior saver account options tend to see a sharp drop in interest rates after a certain amount is deposited.
4. For senior citizens: AmTDPlus-i
| Tenure | Interest rate |
|---|---|
| 3 months | 2.33% |
| 6 months | 2.48% |
| 9 months | 2.48% |
| 12 months | 2.55% |
| 15 months | 2.60% |
| 18 months | 2.60% |
| 21 months | 2.60% |
| 24 months | 2.60% |
| 36 months | 2.65% |
| 48 months | 2.70% |
| 60 months | 2.70% |
If you’re aged 50 and above, the AmTDPlus-i could be a good fixed deposit account to consider. It has decently high interest rates that start at 2.33%.
It allows you to enjoy profits on a monthly basis until maturity, with medium to long term tenures of 6 to 60 months to suit your financial goals. This can be useful if you’re relying on your interest payments to help cover living expenses during retirement.
The only downside is that you need to place a deposit of at least RM5,000.
Get more out of your savings
Fixed deposits are a great way to earn a bit of returns out of your spare cash, or to preserve your savings. But don’t forget that there are other ways of growing your money, too. You could consider these high-interest savings accounts or these fixed deposit alternatives. If you can handle a bit more risk, and you can afford to put your money away for several years, you can even consider investing it.
This article was first published in June 2021 and has been updated for freshness, accuracy and comprehensiveness.
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