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Fixed Deposits

Beginner’s Guide To Fixed Deposits In Malaysia

Fixed deposits are insured by PIDM for up to RM250,000.


There’s a total of RM500 billion in combined fixed deposit savings amongst Malaysians in 2019. Fixed deposit is quite a popular financial instrument for earning interests and you might have heard others talking about it or your parents might even have opened a fixed deposit account to help you save from young.  

Depositors place their money in a fixed deposit account for a fixed term and get interest at the end of the term. The interest rate is predetermined and guaranteed so depositors know how much interest they will be getting at the end of the term.  

In addition, many fixed deposits are protected by the Perbadanan Insurans Deposit Malaysia (PIDM). In any event a bank collapses, up to RM250,000 of your fixed deposit will be returned to you. So, fixed deposits are considered a low-risk instrument that lets depositors earn guaranteed interests.   

The Pros And Cons Of Growing Your Savings With A Fixed Deposit Account 


Easy: Aside from being low-risk, fixed deposit is also very much hassle-free. All depositors need to do is sign up for an account, place their savings, and leave them in the account until the term ends. There is no need for any financial skills such as surveying or checking the market. You may even open and make a placement in a fixed deposit account online yourself. 

Accessible: Minimum deposit amount for fixed deposit accounts can be as low as RM500 for terms as short as one month. You’re not required to fork out a large sum of money upfront to save with a fixed deposit account. 

Safe: Interest rates for fixed deposits are predetermined so you know exactly what to expect at the end of the term. Your deposits are also protected by the PIDM for up to RM250,000. 


Lockdown period: There are disadvantages to putting your money in a fixed deposit account. For one, your savings will be locked down for a period of time. So, depositors must consider if they have sufficient fund for emergencies before placing their money in a fixed deposit account as it may take some time to withdraw money from a fixed deposit account.  

If depositors withdraw their fixed deposit before the term concludes, depositors may not get any interest or only a portion of the guaranteed interest. 

Low interest rate: When making your saving plans, it’s important to take into account inflation rate. In Malaysia inflation rate had risen to 3.3% last year. Currently, the highest interest rate offered by fixed deposit is 3.90%, which covers the current inflation but leaves one with not much growth in savings after.  

What Are The Fixed Deposit Rates Offered By Banks In Malaysia?  

Fixed deposit rates vary from bank to bank. The higher the rates offered, the more interest you will get at the end of the term. Fixed deposit rates may also vary depending on the deposit amount and term. Some banks may offer higher rates to customers who place a higher deposit at a longer term.  

Here are banks in Malaysia and their base rates as well as interest rates. Base rate is a reference rate for the bank to decide on fixed deposit rates offered to customers. Do note that they tend to change from time to time. 

Bank  Base Rate (p.a.) 

As of May 2023 

Interest/Profit Rate (p.a.) 
Al Rajhi Bank  4.10%  2.15% – 2.85% 
CIMB Bank  4.00%  2.50% – 3.35% 
MBSB  3.90%  3.00% – 3.90% 
Hong Leong Bank  3.88%  2.15% – 2.35% 
UOB  3.86%  2.40% – 2.70% 
Bank Simpanan Nasional  3.85%  2.75% – 3.35% 
Alliance Bank  3.82%  2.55% – 3.10% 
Bank of China (Malaysia) Berhad  3.80%  2.90% – 3.15% 
Bank Islam  3.77%  2.65% – 3.35% 
RHB  3.75%  2.65% – 3.05% 
HSBC  3.64%  2.50% – 3.45% 
Public Bank  3.52%  2.50% – 3.10% 
Standard Chartered  3.52%  2.65% – 2.85% 
Kuwait Finance House  3.50%  2.18% – 2.60% 
Bank Muamalat  3.31%  2.95% – 3.50% 
Maybank  3.00%  2.60% – 2.90% 

 Should You Place Your Savings In Fixed Deposits? 

Before deciding if you should place your savings in a fixed deposit account, you may want to consider a few things. There’s a lockdown period for fixed deposits so you will need to set aside a sum of money for emergency as withdrawal will take some time. Besides, fixed deposits may be safer than other investment options but they offer interests that are lower as well.  

The upside is that fixed deposits are low risk, hassle-free and depositors know upfront how much interest that they will earn. Most fixed deposits also offer protection for up to RM250,000 of your deposits which gives it an extra layer of security other investment options may not have. So, perhaps one could consider placing a portion of their savings in fixed deposits but also to invest in other options as well to ensure a diversified and balanced portfolio.      


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