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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 July 2024.
Your Guide to Fixed Deposits + Latest FD Rates
What is Fixed Deposit (FD) and Fixed Deposit-i (FD-i)?
![Fixed Deposits going up](https://iqiglobal.com/blog/wp-content/uploads/2023/11/IQI-blog-image-_640-x-320_-_7_.webp)
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 July 2024
1. Alliance Bank
Offer: Alliance Bank’s Fixed Deposit Promotion Offer.
Interest Rates: 3.80% per annum for 6 months
Minimum Deposit: RM10,000
Promotion Period: 1 April 2024-30 September 2024
Offer details and conditions: Exclusively for Alliance Bank new account holders; must be deposited in 30 days.
![FD](https://iqiglobal.com/blog/wp-content/uploads/2024/05/Rectangle-Content-Image-9-min.webp)
2. CIMB Bank
Interest Rates:
Interest rate (%) | Lock-in period |
3.55 | 3 months |
3.70 | 6 months |
Minimum deposit: RM1,000
Promotion Period: 17 May 2024 – 15 July 2024
Preferential Terms: Users must use CIMB Clicks Website or CIMB OCTO APP, and transfer money from other banks to CIMB Bank accounts by FPX.
![FD](https://iqiglobal.com/blog/wp-content/uploads/2024/06/7.webp)
3. 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: 8 July 2024 – 31 July 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.
![FD](https://iqiglobal.com/blog/wp-content/uploads/2024/05/Rectangle-Content-Image-3-min-1.webp)
4. RHB Bank
1. RHB Term Deposit
Fixed Deposit Rate: 3.70%
Minimum deposit: RM1,000
Lock-up period: 6 months
Offer period: 4 June 2024 – 31 July 2024
Offer Details & Conditions: It can be deposited through RHB Mobile Banking App or RHB Online Banking.
2. RHB e-Term Deposit
Fixed deposit interest rate: 3.60%
Lock-in period: 6 months
Promotion period: 4 June 2024 – 31 July 2024
Minimum deposit: RM1,000
Offer details and conditions: Deposit can be made through RHB Mobile Banking App or RHB Online Banking.
![FD](https://iqiglobal.com/blog/wp-content/uploads/2024/05/Rectangle-Content-Image-4-min.webp)
5. OCBC Bank
Interest Rates:
Interest rate (%) | Lock-in period |
3.90% | 4 months |
Minimum Deposit: RM1,000
Promotional Period: 3 June 2024 – 31 August 2024
Preferential Terms: Users must deposit at OCBC Bank counter and transfer money from other banks to OCBC Bank account in the form of Fresh Fund. The minimum initial deposit is RM1,000 for 6 months.
![FD](https://iqiglobal.com/blog/wp-content/uploads/2024/06/image-1.png)
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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