For 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
- 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.
- 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.
- 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.