The Best Fixed Deposits In Malaysia For 2020

The Best Fixed Deposits In Malaysia For 2020

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 (FD).

Fixed deposit is a type of 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.

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The rates presented here have been revised after several cuts to the Overnight Policy Rate; which is currently at a historically low 1.75%. As a result, banks have revised the interest/profits rates on Fixed Deposit accounts to match the current financial situation.

We have combed through the market and found the best fixed deposits in Malaysia for 2020 according to your needs.

Compare all the options available to find your best

For general savings 

BSN Term Deposit

Minimum deposit: RM500
Interest rates:

Tenure Interest Rates (% p.a.)
1 month1.75%
3 months1.80%
6 months1.85%
9 months1.90%
12 months2.20%
15 months2.10%
18 months2.10%
24 months2.10%
36 months2.10%
48 months2.10%
60 months2.10%
*source: BSN

Bank Simpanan Nasional offers an attractive alternative to Bank Islam by providing better rates in the medium term. This can potentially benefit those who are not looking to tie up their funds for four to five years, and would instead be looking at a shorter savings period.

The BSN Term Deposit-i is also available. This provides a Shariah-compliant alternative for Muslims.

Bank Islam Term Deposit-i (Tawarruq)

Minimum: RM500
Profit rates:

TenureProfit rate (% p.a.)
1 month1.75
2 months1.75
3 months1.80
4 months1.80
5 months1.80
6 months1.85
7 months1.85
8 months1.85
9 months1.85
10 months1.85
11 months1.85
12 months1.95
15 months2.00
18 months2.05
21 months2.10
24 months2.15
36 months2.15
48 months2.15
60 months2.15
*source: Bank Islam

Based on the principle of Tawarruq, where the commodities are traded in order to generate profit, the Bank Islam Term Deposit-i offers some of the best profit rates in Malaysia. This is particularly noticeable due to the low minimum deposit.

The underlying assets being traded here are mainly precious metals, excluding gold and silver. However, it also trades in palm oil and other commodities that are shariah compliant.

As a shariah compliant product, this is especially suitable for muslims. However, Bank Islam accepts customers of all religions; and this is a fixed deposit solution that should be considered by all Malaysians.

For the low ballers

Affin Bank Fixed Deposit

Minimum deposit: RM500 (for two months and above)
Interest rates:

TenureInterest rate (% p.a.)
1 month1.70
2 months1.70
3 months1.80
4 months1.80
5 months1.80
6 months1.85
7 months1.85
8 months1.85
9 months1.80
10 months1.80
11 months1.80
12 months1.85
>12 monthsNegotiable
*source: Affin Bank

The Affin Bank Fixed Deposit plan allows you to grow your savings with just RM500; one of the banks with the lowest point of entry for an FD account. It also offers an attractive 3.90% interest rate per annum for a tenure of 12 months. Longer tenures – of up to 60 months – offer interest rates of up to 4.15%. Even if you are not a low-baller, this makes an attractive rate for general savings too.

The low minimum deposit caters to lower income groups that may struggle to get started with other banks.

For the kids

BSN Term Deposit

This is the most flexible FD available, with tenures lasting as little as 1 month and a minimum deposit as low as RM500. With the account allowing for individuals as young as 12 years old, the variable tenures allow parents to set the FD maturity date for milestones in their children’s life.

Shorter-term tenures could be used for schooling supplies, while longer terms could be used as graduation presents or to prepare for tertiary education. The low minimum deposit helps with less affluent families aspiring to send their children off to study at local universities.

Refer to the previous section for interest rates.

For senior citizens

CIMB Golden Time Deposit 2 (Big Plus for 50 Plus)

Minimum deposit: RM30,000
Interest rates:

TenureInterest Rates (% p.a.)
15 months1.85
18 months1.85
24 months1.85
36 months1.90
48 months2.00
60 months2.10
*sources: CIMB

This option is attractive due to the flexibility in withdrawals. Customers can opt to withdraw their savings (in amounts of RM1,000); although there is a minimum balance of RM30,000 required to maintain the account.

Flexible withdrawals may be of benefit for those who may need emergency funds to cover unforeseen medical bills or expenses during retirement. However, this comes at the cost of lower interest rates; which could lead to lower returns if you don’t exercise discipline while saving.

BSN Term Deposit Senior Citizen

Minimum deposit: RM5,000
Interest rate:

TenureInterest rate (% p.a.)
RM5,000 - RM50,000>RM50,000
12 months2.102.15
15 months2.152.20
18 months2.152.20
24 months2.152.20
36 months2.152.20
48 months2.152.20
50 months2.152.20

*source: BSN

Bank Simpanan Nasional offers better interest rates than Public Bank, although it doesn’t offer the same discounts. The other difference is that interest payments are made every four months; which is roughly every quarter year. However, account holders must open a BSN Giro account in order to receive the payments.

The BSN Senior Citizen term deposit can also be used as collateral for select financial products from the bank. These include credit cards, micro-financing, mortgages, and hire purchase loans. In all, this makes it an attractive solution for those facing retirement and would still like to have financing options open.

The above are some of the best FDs offered in mid-2020. Compare and decide which one best suits your needs. It’s not too late for you to grab the opportunity and grow your money!

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