Here, I won’t share with you about shares and mutual fund because those are more for investing while FD is strictly for savings purposes. But, how do we count the total gain from fixed deposit for a year?
Lets say you put 10k FD for 1 year at 3.70%(p.a) which is regulated by central bank. Then at the end of the year you can get $10370.
** Take note that if you withdraw before the maturity date, you won’t get the full interest.
If monthly basis (1 month) with 3.0% interest rate, then you’ll get $300 divided by 12 months. If you add up the interest into your FD automatically, the next calculation will be based on your total FD. So, you can enjoy more as the powerful of compounding interest.
Based on my previous survey, I noticed that some bank may offer higher rate but very rare to exceed 4% p.a. and it depends on:
i)How much you want to deposit ?
ii)How long you want to keep for ?
iii)Are you a senior citizen ?
On the other hand, there’s also Islamic FD will offer higher rate; may be 4% p.a (but still < 4.5% p.a). However, there’s a profit sharing ratio and before committing into it, better check it with the bank. I believe BSN and Bank Rakyat are highly promoting this product.