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Fixed Deposits (FD) and Fixed Deposit-i are widely trusted investment options in Malaysia, offering a secure way for people to grow their savings.
These choices have become popular because they are safe, reliable, and provide consistent earnings.
Let’s look at these options and understand their differences, along with the current FD rates in May 2024.
Your Guide to Fixed Deposits + Latest FD Rates
What is Fixed Deposit (FD) and Fixed Deposit-i (FD-i)?
What is Fixed Deposit (FD)?
Fixed deposits, commonly known as FDs, are traditional savings accounts offered by banks and financial institutions.
They function on a straightforward principle: you deposit a specific sum of money for a predetermined period, ranging from a few months to several years.
During this tenure, the deposited amount accrues interest at a fixed rate, which is typically higher than in regular savings accounts.
The interest rate remains constant throughout the agreed-upon period, providing investors with stability and predictability in their earnings.
What is Fixed Deposit-i (FD-i)?
Fixed Deposit-i, often referred to as Islamic Fixed Deposits, follows the principles of Islamic finance. These deposits are Shariah-compliant, adhering to Islamic laws that prohibit earning interest (Riba).
Instead of earning interest, investors in Fixed Deposit-i accounts enter into a Mudarabah or Wakalah contract with the bank.
Under Mudarabah, the bank pools funds from investors and engages in Shariah-compliant activities.
Profits generated from these activities are shared between the bank and the investors based on agreed-upon ratios.
Key Differences between FD and FD-i
| FD | FD-i | |
| Interest vs. profit-sharing | Earn a fixed interest rate on your deposit | Using a profit-sharing model |
| Shariah Compliance | Operate on interest, which might not align with Shariah principles | Shariah-compliant |
| Flexibility in Tenures | A variety of tenures, accommodating both short-term and long-term investment preferences | Provides diverse tenure options, allowing you to align your investment with your specific goals and needs |
| Investment Profit Allocation | Earnings are based on fixed interest rates | Operates on profit-sharing; returns fluctuate based on profits from Shariah-compliant activities |
Latest Fixed Deposit/FD rates for May 2024
1. CIMB Bank
Interest Rate:
| Existing CIMB deposit account | Transfer from other banks to CIMB deposit via FPX |
| 3.55% (6 months) 3.70% (12 months) | 3.55% (3 months) 3.70% (7 months) |
Minimum deposit: RM1,000
Promotion period: 2 April – 3 May 2024
Offer details and conditions: Users must deposit through the CIMB Clicks web page and cannot deposit through the CIMB Clicks App.
2. Maybank
Offer: Maybank presents the “e-Islamic Fixed Deposit-i Placement” campaign.
Interest Rates: 2.55% per annum for 3 months, 2.60% per annum for 6 months
Minimum Deposit: RM1,000
Promotion Period: 29 April 2024-31 May 2024
Offer details and conditions: Depositors must transfer money from other banks to their Maybank account in the form of FPX.
3. OCBC Bank
Offer: OCBC Bank’s Fixed Deposit Promotion Offer.
Interest Rates: 2.65% per annum for 6 months
Minimum Deposit: RM1,000.
Promotion Period: 2 May 2024 – 31 May 2024
Preferential Terms: Users must use OCBC Online Banking to deposit funds; and the fresh funds (Fresh Fund) must be transferred from other banks to the OCBC Bank account in the form of FPX.
4. Hong Leong Bank
Offer: Hong Leong Bank’s HLB Connect eFD/eFD-i fixed deposit offer.
Interest Rates:
| Interest rate (%) | Lock-in period |
| 3.45 | 3 months |
| 3.65 | 6 months |
| 3.65 | 10 months |
| 3.60 | 12 months |
Minimum deposit: RM1,000.
Promotion Period: 1 May 2024 – 24 May 2024
Preferential Terms: Users must use HLB Connect Online or HLB Connect APP, and transfer money from other banks to Hong Leong Bank accounts by FPX.
5. Public Bank
Offer: Public Bank provides “eFD via FPX.”
Interest Rates:
| Interest rate (%) | Lock-in period |
| 2.60 | 3 months |
| 2.65 | 6 months |
| 2.60 | 9 months |
| 2.60 | 12 months |
Minimum Deposit: RM5,000
Promotion Period: 1 April 2024 – 30 June 2024
Preferential Terms: Exclusively for online time deposit discounts, facilitated through Public Bank Online Banking (PBe Online Banking) using FPX fund transfers with new funds.
6. RHB Bank
1. RHB Term Deposit
Fixed Deposit Rate: 3.70% (minimum deposit of RM1,000); 3.80% (minimum deposit of RM10,000)
Lock-up period: 9 months
Offer period: 12 April 2024 – 30 June 2024
Offer Details & Conditions: The 3.80% discount is only available to RHB Premier users. It can be deposited through RHB Mobile Banking App or RHB Online Banking.
2. RHB e-Term Deposit
Fixed deposit interest rate: 3.70%
Lock-in period: 9 months
Promotion period: 17 April 2024 – 30 June 2024
Minimum deposit: RM1,000
Offer details and conditions: Deposit can be made through RHB Mobile Banking App or RHB Online Banking.
Finding the best FD rates in Malaysia involves careful consideration. As a potential investor, focus on the duration, minimum deposit, and any special terms each bank offers. By understanding these details, you can make a smart investment choice tailored to your needs. Stay informed, compare options, and choose wisely to maximize your earnings!
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