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With so many trendy investments in the market right now, it’s easy to overlook long-standing wealth products such as Fixed Deposits. However, the current high-interest rate or high-profit rate environment makes the Fixed Deposit account an attractive option for you to grow your money. 


So what makes Fixed Deposit Accounts great? 

Fixed Deposit: How it Works 


A fixed deposit account is a type of investment that allows you to earn a fixed interest rate or a profit rate over a set period of time (anywhere from 3 months, 6 months, 12 months and more). How it works is that you choose the tenure, “park” your money for the whole duration of the tenure, and earn a profit at the end of the tenure. Easy peasy.   


Fixed deposits are safe, low risk and can offer an attractive rate compared to savings accounts. The difference is that you can’t withdraw your money until the maturity period is up. So if you’re thinking of placing RM10,000 for 6 months, be sure not to make any withdrawals to earn your profit. 


Fixed deposit accounts in Malaysia are also protected by PIDM up to RM250,000. 

How Fixed Deposits Can Help You

The low-risk factor makes a fixed deposit account an ideal “tabung” or piggy bank to achieve your short and long-term financial goals:


To Build Your Emergency Fund


One of the primary financial goals that everyone should have is building an emergency fund. Fixed deposits can help you earn a profit that’s higher than a typical savings account – which means that you can grow your fund faster! 

You can set aside a portion of your savings in a fixed deposit account, which will earn interest and can be accessed in case of emergencies.


To Save for a Home Downpayment


Looking to grow your downpayment savings fast? This is the time to take advantage of the increase in OPR and look for high-interest fixed deposit promotions. 


To Grow Your Investment Capital


If you’re saving up your money to purchase stock or any other type of investment, then why not park your money in a fixed deposit account in the meantime? You will get better rates compared to a regular savings account, and FDs can be a part of your investment portfolio too. 

Fixed Deposits the Right Way: Tips to Maximise Your Savings


There are plenty of fixed deposit accounts in Malaysia, and each one of them offers variable rates, tenure, promotions and types. Here are some tips to consider when choosing your FD account:


Look for Promo Rates/High-Interest or High-Profit FD Rates


Different banks may offer different interest profit rates on fixed deposits. So take some time to compare the rates, terms and tenure before making a decision. 


It helps to find out how your profit is calculated too so that you’ll know how much you can earn.


Let Your Money Compound 


Check if your FD gets reinvested after the tenure ends. This results in a compounding of interest, which means your earnings will be higher than non-cumulative fixed deposits. 


Diversify your FDs


If you have the funds, you can invest in multiple fixed deposits with different tenures. This helps you spread your investments over different tenures and earn higher returns on your investments. 


Avoid Premature Withdrawals


Premature withdrawals usually come with a penalty and can significantly reduce your earnings. Try to avoid withdrawing your fixed deposit before maturity. Luckily, CIMB has a solution for you via the Unfixed Deposit Account.

Things to Keep in Mind When Opening a Fixed Deposit


Fixed deposit can be a great option to grow your money because of the high rate of return and the security it offers. Before opening a fixed deposit account, it is prudent to keep the following in mind: 


Terms and Conditions of the Deposit


The terms and conditions of fixed deposit may vary from bank to bank. It is advisable to read them before opening the account. The terms and conditions may contain information about:


  • the tenure of the deposit i.e. the period for which the amount is locked. It can be long, medium or short-term.
  • Option of loans against fixed deposits.

  • Premature withdrawal facility, in case of emergencies and the amount that could be incurred as costs in case of such withdrawal. 



Fixed deposits are one of the oldest and safest deposits offered by banks. So why not open one today? 




This article is for informational purposes only and CIMB does not make any representation and warranty as to the accuracy, completeness and fairness of any information contained in this article. As this article is general in nature, it is not intended to address the circumstances of any particular individual or entity. You are advised to consult a financial advisor or investment professional before making any decisions based on the information contained in this article. CIMB assumes no liability for any consequences arising from your reliance on the information presented here.