Malaysia Financial Blogger | Financial Freedom Ideas | imDavidLee.Com

Shorter-term Fixed Deposit Tenures Would Be Better?

Fixed deposit has been seen as a lower return saving vehicles. But, it is low in risk and high in liquidity as well. In current situation where interest rates are expected to go up, people may start to question how long they should place their money in the FD account.

Based on my personal calculation, it’s better to place your FD in a shorter tenure so that you can take advantage of the expected interest rate rise in future. I still remember in the mid of May, Bank Negara Malaysia revised its Overnight Policy Rate (OPR) by 25bps to 2.5%. You can try to put your fixed deposit in a shorter tenure such as 1 month, 2 months or 3 months. This is because if you put in a longer tenure now and you can gain an extra 25bp from it, but you won’t profit from it if the rate rise by another 50bp in a couple of months perhaps.

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CIMB Bank Fixed Deposit Campaign

2 days ago, my friend Thian Thian come to visit me and from the conversation, i only know that she is working in CIMB bank now and provides me the latest information about the CIMB newly launched product - “Go for Gold” which is a nationwide deposit campaign. I never heard about this campaign before but I am eager to get more details from her, she said that you would stand a chance to win the prizes if you make deposit with CIMB Bank.

She also explained to me that with every incremental deposit of RM1,000 during the campaign period, you will entitled to get 1 entry for the contest.

As an fixed deposit account holder, they will enjoy added bonus during this campaign period, customers will get the interest of 2.45% per year on their 8 months fixed deposit placement. For me, the idea is very simple which encourage more people to deposit in bank; the more they put into fixed deposit the higher chances of winning.

CIMB “Go For Gold” Campaign

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CIMB Islamic Max InvestSave

Previously, there have great promotion on this Max InvestSave, which you top up your deposit, then you can get to participate in the contest and also get free gift. So, pioneer investors of Max InvestSave will receive bonus units of up to 30 percent of their total investment value.

At a glance, it is saving plan + investment linked. It is not sound too good to be true, the profit stated is projected based on last few years market data which is not so guaranteed. The capital is only guaranteed if one held until maturity period of the scheme.

Hope with my little information here may clear a lot of doubts, and uncertainties among those people who plan to save and invest.

- For me, this kind of investment really pays out highest RIV when you deposit.
- Secondly, what you see is what you get. What’s on the T&C is what investors will get. The bank won’t take investors’ money and invest in ponzi schemes, simply because the bank is not allowed so. A lot of investors seem to have the view that banks always have their ways to invest such as buying properties.
- This Max InvestSave product works best in the long term and it is very suitable for retirement planning.

Why CIMB Islamic Max InvestSave Better Than Fixed Deposit?

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Why Property Investment Better Than Fixed Deposit?

Do you think investment through property rental can guarantee you to earn higher return in the long run if compare to fixed deposit saving? Anyway, you should make a proper plan before buying any property for investment.

Based on my understanding, if buying a house now, then for sure the price will go up. But, will you really earn? You need to know that some of the money have to be paid to bank interest first and also you might spend some money to renovate your house and other expenses like maintenance fees for the house.

How to Calculate Return On Investment for Property Rental?

Property Type: Apartment
Size: 650 square feet
Housing Price: RM 75,000
Down Payment: RM 7,500
Housing Loan Amount: RM 67,500
Loan Interest Rate: 5% (assumption)
Loan Tenure: 15 years (assumption)
Housing Loan Installment: RM 534 per month
Gross Rental: RM 600 per month
Other Expenses: Maintenance fees and renovation cost

Monthly Net Rental = Gross Rental - Loan Installment
= RM 600 - RM 534
= RM 66

Fixed Deposit vs Property Investment
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Sukuk Simpanan Rakyat With 5% Fixed Guarantee Return

A bit late for me to update this type of investment scheme, but this information could help you in future. As everybody known, global economy crisis had hit the bank fixed deposit interest rates dropped to 2.5% or below. However, it’s good news to public because Sukuk Simpanan Rakyat was launching new units during this 2nd quarter of the year.

How Much I Know About Sukuk Simpanan Rakyat?

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Malaysia Bank Fixed Deposit Rate

I felt very proud because I have a great amount of money in fixed deposit. This is because fixed deposit would be safer investments type but inflation rates running high, you may actually lose more value in your fixed deposit savings over time than what you actually receive back in interest. This is the main risk of investing in low interest rates investments like fixed deposit.

About 2 week ago, almost all bank in Malaysia lowered fixed deposit interest rate to 3% p.a. Are you affected by these interest rate changes? What are you planning to do? I have done some self-research and found that Bank Simpanan National is offering 3.6% p.a., which is the highest fixed deposit interest rate currently. I can see a lot of auntie & uncle go to put their hard earned money in this kind of bank during Chinese New Year.

But the thing that always makes people confused is the calculation work. To know more about this, you can go back to my previous article -> How To Calculate Bank FD Rate