best fixed deposit

These Fixed Deposits Offer The Highest Returns In 2021

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 historic low of 1.75%. This caused fixed deposit interest rates to fall in tandem, which means that you now get much lower interest returns compared to previous years.

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.

Compare all the options available to find your best

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.

BankPromo untilMin depositTenureInterest rate
Bank of China Safe & Save DepositJune 30, 2021RM10,000 fixed deposit and RM2,000 savings account6 months2.55%
Bank Muamalat Fixed Term Account-i CampaignJuly 31, 2021RM4,000 fixed deposit and RM1,000 savings account12 months2.47%
Hong Leong Bank eFixed Deposit/eFixed Deposit-iJune 30, 2021RM10,00012 months2.35%
KFH Term Deposit-iJuly 15, 2021RM5,00012 months2.30%

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 forBankTenure (months)Interest rates
General savingsHSBC Time Deposit1 - 601.40% - 2.70%
Low ballersBSN Term Deposit1 - 601.75% - 2.10%
KidsHong Leong Bank Junior Fixed Deposit12 - 601.75%
Senior citizensBSN Term Deposit Senior Citizen12 - 602.10% - 2.20%

1. For general savings: HSBC Time Deposit

Tenure (month)Interest rate
1 - 21.40%
3 - 51.55%
7 - 171.65%
18 - 232.00%
24 - 352.30%
36 - 472.35%
48 - 592.60%

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 – other banks may offer 1.50% and above for one- or two-month tenures.

If you’re interested, you can open an account completely online.

2. For the low ballers: BSN Term Deposit

TenureInterest rate
1 month1.75%
3 month1.80%
6 month1.85%
9 month1.90%
12 month2.20%
15 month2.10%
18 month2.10%
24 month2.10%
36 month2.10%
48 month2.10%
60 month2.10%
Fixed deposits generally require at least an RM1,000 deposit, but the BSN Term Deposit accepts as little as RM500. It also offers relatively higher interest rates at shorter tenures (i.e. below one year). However, the RM500 minimum deposit is only applicable if you choose a tenure of at least three months.

3. For the kids: Hong Leong Bank Junior Fixed Deposit

TenureInterest rate
12, 24, 36, 48 or 60 months1.75%

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.

4. For senior citizens: BSN Term Deposit Senior Citizen

TenureInterest rate
RM5,000 - RM 50,000> RM 50,000
12 months2.10%2.15%
15 months2.15%2.20%
18 months2.15%2.20%
24 months2.15%2.20%
36 months2.15%2.20%
48 months2.15%2.20%
60 months2.15%2.20%

If you’re aged 50 and above, the BSN Term Deposit Senior Citizen could be a good fixed deposit account to consider. It has higher-than-average interest rates that start at 2.10%.

It also gives you periodic interest payments – deposits of RM50,000 and under will give you quarterly interest payments, while deposits above RM50,000 will give you monthly interest payments. 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.

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