MONEY BEGETS MONEY – 3 Best Ways Fixed Deposit Accounts Could Save Your Financial Future

fixed-depositFor decades now, Fixed Deposit (FD) continues to be the bank product of choice by depositors in the banking sector. Usually referred to as a time deposit, this monetary instrument will work for you in so many ways. When you place your money in the bank for a fixed period of 30, 60, 90 days or more, it will earn higher interest on maturity date as compared to the regular savings account. Clients are generally attracted to the bank with the best FD in Malaysia.

But is FD still worth it in a changing investment landscape? Other investment outlets like stocks, mutual funds, bonds and equity among others offer relatively higher rates. Seasoned investors, as well as the wealthier ones, have the flexibility to play in the financials market. Choosing from among small, medium and high-risk investments is of no consequence if you can maximize your returns and average out your losses.

 

However, if you are careful about your hard-earned money and do not have enough to spare, then the sophisticated financial papers are not for you. Wealth building for the ordinary investor begins with a small amount but with a long-term vision. That is why FD should be your top-of-mind. Let us check out the ways your FD account can be your vehicle to secure your financial future.

 

3 Best Ways Fixed Deposit Accounts Could Save Your Financial Future

 

  1. Longer Fixed Deposit Period

The typical short-term FD is usually 30 to 90 days. However, as you go with a tenor beyond 90 days, the higher interest rate you will enjoy. If you do not foresee any immediate use of the money, better decide on the longest term possible that you can keep it in the bank.

 

  1. Roll-Over of Principal + Interest

When the maturity date comes, and you still have no need for the money, you can place back the maturity value (original principal plus interest earned) in a new FD account. The maturity value of the previous account becomes the new principal amount in the new account. In a matter of time, you will see your money grow with the compounding effect of continuous roll-over.

 

  1. Choose Your Bank Wisely

Banks offer different FD rates depending on benchmark rates and source of funds. Rates are determined based on a strong customer deposit base or transfer pricing which is a mix of all funding sources. As a client, you can benefit from the pricing competition among banks.

 

Before deciding on opening the best FD in Malaysia, check if the bank is a member of PIDM. This agency ensures your deposit up to the extent RM250,000. How safe can your money get with an FD? Invest in FD because your future is here and now.

Mortgage Basics – 4 Quick Tips for Easy and Problem-Free Mortgage Management

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Saving for a home can take a lot of time, and that’s why people often look for other sources of funding to help finance a property. For many Malaysians, taking out a loan from a bank or any other lender is the best course of action to help ease the process of buying a house. But simply borrowing money won’t guarantee an easy purchase experience. There are lots of factors that can negatively affect your mortgage, so it’s best to find out what you need to know to help make payments easier. Find out how to manage your mortgage without a worry by reading through these 4 tips.1

  1. Automate Your Payments – A missed mortgage payment can become a big problem later on. Aside from the fact that monthly amortization will quickly pile up and grow to a hefty size if allowed to pass without timely payment, constantly missing out on your monthly dues will negatively affect your credit rating. To prevent the chances of missing your amortization schedule, automate payments and have the exact value debited from your account as soon as your salary funnels into your account.2
  2. Cover Your Mortgage – Lenders almost always incur a risk when they provide loans, because there’s never a guarantee that their clients will be able to make payments consistently for the term of the loan. To make it easier for your lender to provide you with a bigger loan amount, consider getting your mortgage covered. Mortgage insurance in Malaysia often comes bundled with the loan itself, with premiums divided across the length of the contract. This will compensate lenders for any losses incurred, making it easier for them to grant loans to borrowers of all backgrounds.3
  3. Calculate Your Loan Term – Many borrowers make the mistake of choosing a loan term based on how numbers look on paper. A shorter term may look more expensive upfront, but all together, you will be paying much less in terms of interest. Longer terms can seem easier on the pocket now, but add up all the payments you’ll have to make, and it will become apparent how a longer term could increase the loan amount by half. Consider how long you want your loan to be, and always opt for the shortest term you can afford.4
  4. Know Your Fall Back – There’s never any way to guarantee that you’ll be able to make mortgage payments ten or fifteen years into the future, and that’s why it’s important to understand what your fall back options are before you dive into a loan. Refinancing is a great way to refresh your loan after a financially damaging experience, like a divorce or a change of occupation. Basically, this allows you to clear out your original loan and refinance your property under a different lender. Of course, there are specifics, and a refinancing plan may not always be the cheapest, but it will keep you from losing your assets and prevent any damage to your credit score.

For a lot of people, mortgage payments prove to be among the most troubling expenses of adult life. But there are things you can do to help ease the process of meeting those amortization deadlines. Follow these 4 tips to manage your mortgage without a worry, and secure that property sooner rather than later.