Want to put your money away and know exactly what youll get at the end of the day?

Then a fixed deposit is for you.

DEFINITION
Are loan arrangements where a specific amount of funds is placed on deposit under the name of the account holder. The money placed on deposit earns a fixed rate of interest, according to the terms and conditions that govern the account. The actual amount of the fixed rate can be influenced by such factors at the type of currency/ involved in the deposit, the duration set in place for the deposit, and the location where the deposit is made.

The most unusual characteristic of a fixed deposit is that the funds cannot be withdrawn for a specified period of time. In most cases, fixed deposits carry a duration of 5 years. During that time, the money remains in the account and cannot be withdrawn for any reason. As an added benefit, the monies in the account will earn a fixed rate of interest regardless of any fluctuations in interest rates that apply to other types of accounts.

Benefits of Fixed Deposit Accounts Various banks offer higher rates of interest to senior citizens on their fixed deposits than to regular account holders. This makes fixed deposits a popular investment for retirement. In most countries, tax departments allow deductions if one makes investments in fixed deposits. A fixed deposit account yields higher returns than normal deposits, such as a savings account or a current account. A fixed deposit usually yields interest on a quarterly basis.

Fixed deposits are considered safer than mutual funds and investment in stocks. Bank accounts in developed markets are insured. For example, the FDIC insures(menjamin) all deposits in US banks.

The Drawbacks of Fixed Deposit Accounts

Money invested in a fixed deposit grows slower than in investments such as stocks.

The rate of interest offered by banks on fixed deposits is subject to change according to inflation.If inflation rises, the interest earnings from a fixed deposit will be significantly impacted. The account holder is not allowed to withdraw the funds before the date of maturity.

Precautions While Investing in Fixed Deposit Accounts

Here are some precautions an investor must bear in mind while investing in fixed deposit accounts : If one has invested in a companys fixed deposit account, chances are s/he will lose her or his money if the company goes bankrupt. It is important to read the fine print. The best option is to open a fixed deposit account in an established and reputed bank and to ensure this situation is covered by insurance.

Precautions While Investing in Fixed Deposit Accounts

Here are some precautions an investor must bear in mind while investing in fixed deposit accounts : If one has invested in a companys fixed deposit account, chances are s/he will lose her or his money if the company goes bankrupt. It is important to read the fine print. The best option is to open a fixed deposit account in an established and reputed bank and to ensure this situation is covered by insurance.

Malaysia Bank Affin Bank Berhad Am Bank Berhad

12 Months Interest Rate (%) 2.50 2.50

CIMB Bank Berhad

Citibank Berhad EON Bank Berhad Hong Leong Bank Berhad Maybank OCBC Bank Public Bank Berhad RHB Bank Berhad

2.50
2.50 2.50 2.50 2.50 2.50 2.50 2.50