Fixed deposit is still the most popular type of savings in Malaysia. However, with the latest inflation rate still hovering above 3%, and bank fixed deposit rates still not that high, we are actually encountering the risk of getting the real returns in this context.
Besides that, we also need to have some cashflow for emergencies purpose in the event of a financial crisis. As a rule of thumb, we should keep at least 6-12 months of monthly expenses in the form of cash before looking into any kind of investments or paying off any loans and etc.
Do you know which bank offer the highest interest rate currently? Based on my outcome of windows shopping, I noticed that Affin bank is offering the highest interest rate for 1 year tenure now. But, you need to update it from time to time as there might have other banks come up with better offer with short term tenure.
However, please always bear in mind that it is not a good idea to save all your money in FD as the interest rate is not able to counter the inflation rate. Thus, it’s not able to grow your money. You can park your money in FD temporary and plan into various kind of investment which can generate higher return in order to accumulate your wealth.