You could place RM10,000 on a one-year tenure, RM10,000 on a two-year tenure and RM10,000 on a three-year tenure. Some people get around this by placing multiple fixed deposits with different tenures (this is known as fixed deposit laddering). Otherwise, an early withdrawal could make you lose thousands of ringgit in interest earnings. So before you place a large sum of money in a fixed deposit, you should consider if you need these funds in the foreseeable future, and plan your tenures accordingly. If you withdraw your funds before the fixed deposit tenure ends, you could lose part – or all – of your interest. What happens when you withdraw your funds before the tenure ends? Promotional rates can go up to 2.75% for a 12-month tenure. Banks often offer promotional fixed deposit rates as well, so it’s good to always be on the lookout. Generally, the longer the tenure, the higher the interest rate will be. A placement of RM10,000 with a 12-month tenure will give you RM185 when the tenure ends. In the example above, if you open a fixed deposit with a 12-month tenure, you will be entitled to an interest rate of 1.85% p.a. For example, banks normally quote their fixed deposit interest rates in a table similar to the one below: Tenure/Term

These tenures can vary anywhere from one month to five years.Įach tenure comes with a predetermined interest rate.

When you select a tenure, you are deciding to put your money away and not touch it for a period of time (one month, three months, six months, one year, etc.).

When you open a fixed deposit account, you have the option to choose a tenure (also known as ‘term’). Since the investment term and interest rate are fixed, you can easily calculate the interest you will earn at the end of any fixed deposit investment. In a fixed deposit, interest is only paid at the very end of the investment period. In return, the investor agrees not to withdraw or access their funds for a fixed period of time. A fixed deposit, or ‘FD’, is a type of bank account that promises the investor a fixed rate of interest.

Rhb fixed deposit