Malaysia Best Fixed Deposit Rates [May 2025]

With Malaysia’s Overnight Policy Rate (OPR) holding firm at 3.00% as of 2025, fixed deposits (FDs) continue to stand out as one of the safest and most rewarding ways to grow your savings—especially for those who prefer low risk over market volatility.

While conventional savings accounts barely keep up with inflation, many local banks now offer FD interest rates (promotional) of up to 4.10% p.a., making them a practical choice for both short-term savers and long-term planners.

Whether you're parking your bonus or planning your financial buffer, FDs guarantee returns, protect your capital, and reward you more the longer you stay committed—as long as you don’t break it early.

Best Malaysia Fixed Deposit Promotions May 2025

Kicking off our guide, we spotlight the standout fixed deposit promotions of the season that you won't want to miss. These special offers not only provide rates that soar above the average but typically require a higher minimum deposit. 

Best Malaysia Fixed Deposit May 2025

Let's look into the most popular fixed deposit tenures and the attractive rates offered by various banks in Malaysia.

These fixed deposits are favored for their safety and predictable returns, providing savers with options ranging from as short as 1 month to as long as 12 months. 

Best 1-month Fixed Deposit Rates in Malaysia

Best 3-month Fixed Deposit Rates in Malaysia

Best 6-month Fixed Deposit Rates in Malaysia

Best 9-month Fixed Deposit Rates in Malaysia

Best 12-month Fixed Deposit Rates in Malaysia

Alternatives to Fixed Deposits

Fixed deposits, while a staple in traditional saving strategies, come with their own set of limitations. Primarily, they require locking in funds for a fixed term, during which access is restricted without incurring penalties.

The interest rates, although stable, may not always keep pace with inflation, potentially diminishing the real value of savings over time.

Given these constraints, many savers and investors are exploring alternative investment instruments that offer flexibility, potentially higher returns, and other benefits that fixed deposits lack.

Cash Management Solutions

Cash management solutions stand out for their high liquidity and the potential for higher yields compared to traditional fixed deposits.

By investing in money market funds, these solutions offer a safe investment avenue with returns that can outpace those of fixed deposits.

The flexibility to withdraw funds without penalties makes them an attractive option for investors seeking both safety and accessibility.

One such option for savvy investors who want more from their idle cash is StashAway Simple. StashAway Simple offers investors a projected rate of 3.6% p.a. without needing to lock up your money and it does not impose minimum or maximum investment.

Flexi Home Loan Account

A flexi home loan account allows for the prepayment of home loans, reducing the interest cost over the loan's tenure. Any excess payments can be withdrawn, providing a unique blend of savings and liquidity. 

This option effectively uses the interest-saving mechanism as an indirect investment return, appealing to homeowners looking to reduce their mortgage costs while maintaining access to their funds.

National Education Savings Scheme (SSPN)

The SSPN is tailored for parents and guardians aiming to save for their children's higher education. It offers competitive dividends and is backed by the Malaysian government, ensuring a high level of security. 

Contributions to SSPN qualify for tax relief, making it a financially savvy choice for families planning for educational expenses. This scheme highlights the importance of targeted savings with specific long-term goals in mind.

Amanah Saham Nasional Berhad (ASNB)

ASNB funds, particularly appealing to both Bumiputera and Non-bumi investors, offer a range of fixed and variable price funds. These funds have historically provided returns that are competitive, if not superior, to fixed deposits. 

The stability of fixed-price funds, combined with the potential for higher dividends, makes ASNB an attractive option for investors looking for more dynamic and potentially rewarding investment opportunities compared to the fixed nature of FDs.

Read more: Difference between ASB, ASM, ASN

Differences between Savings and Fixed Deposits Accounts

Not all bank accounts are built the same. While both savings and fixed deposits help you grow your money safely, they serve different purposes—one gives you flexibility, the other rewards you for commitment.

Here’s a side-by-side breakdown to help you decide which one works better for your financial situation:

Many Malaysians use both account types in tandem—FDs for short-term wealth-building, and savings accounts for everyday access. 

Types of FDs in Malaysia

Not all fixed deposits are created equal. If you’ve ever seen headlines promising “up to 6.28% p.a.” returns, chances are the actual yield is much lower once you factor in the fine print.

In Malaysia, banks commonly offer promotional fixed deposits that fall under two main types: Step-Up FDs and FDs with CASA bundling. Both can still offer decent returns—if you know how to read between the lines.

Here’s how each type works:

For example, a bundled FD offering “6.28% p.a.” may actually deliver only 4.02% p.a. after averaging. Always calculate the effective interest rate (EIR)—not just the headline figure—before locking in your money.

What Happens if I Withdraw My Fixed Deposit Early?

Fixed deposits are designed to reward patience. So if you’re thinking of dipping into your funds before maturity—even just a day early—be prepared to give up some, or even all, of your interest.

Banks in Malaysia offer flexible tenures from as short as 1 month to as long as 5 years, but the penalties for early withdrawal vary depending on your FD’s duration.

Here’s how early withdrawals are typically treated:

• Tenure of 1–3 months: Any early withdrawal—whether full or partial—means you’ll forfeit 100% of the interest earned. Even if you’re just a day away from maturity, you get nothing.
• Tenure of more than 3 months: If you withdraw within the first 3 months, the same rule applies—no interest will be paid. But if you withdraw after the third month, banks may still give you interest, but only at 50% of your original rate, calculated on a pro-rated basis.

Moral of the story? Only lock in an FD when you’re certain you won’t need the cash before the end of the tenure. Otherwise, you risk turning your high-interest account into one that pays less than a regular savings account.

Are My Deposits Safe?

Yes—if your money is placed with a licensed bank, your deposits are protected. In Malaysia, all FDs with commercial and Islamic banks that are members of Perbadanan Insurans Deposit Malaysia (PIDM) are automatically insured—up to RM250,000 per person, per bank, covering both principal and interest. This means that even in the unlikely event your bank fails, PIDM will reimburse your insured deposits with no action or fees required from you.

If you're depositing more than RM250,000, one simple way to stay fully protected is to spread your funds across multiple PIDM member banks, or consider joint accounts, which enjoy separate coverage under PIDM. For example, placing RM250,000 in your name and another RM250,000 in a joint account with your spouse ensures both are fully covered.

Not all banks fall under PIDM, though. Development financial institutions (DFIs) such as Bank Rakyat or Agrobank are governed instead under the Development Financial Institutions Act 2002 (DFIA) and don’t offer standard deposit insurance. However, most DFIs do guarantee 100% principal and interest on deposits, especially for retail and cooperative savers. Always check the bank's guarantee terms before committing your funds.

Key Considerations When Choosing a Fixed Deposit Account

Beyond the interest rates and promotions, there are key factors to consider when selecting a fixed deposit account. Here are some critical points to bear in mind:

Tenure Options

Different banks offer a variety of fixed deposit tenure options that can range from as short as a week to several years. Assess what length of time aligns with your financial plans and look for banks that offer the flexibility you need.

Minimum Deposit

Each bank will have a minimum deposit requirement for fixed deposit accounts. Ensure that you're comfortable with the amount you must lock in and that it doesn't compromise your short-term financial requirements.

Interest Rates

The interest rate is a pivotal factor in calculating your returns. Keep an eye on both the base rates and any promotional rates, evaluating how these can help grow your savings over time.

Access to Funds

Consider if you may need to access your funds before the fixed term ends. Some banks offer partial withdrawal options, while others may not. Understand the terms and potential penalties for early withdrawal before committing to an account.

Additional Benefits

Many banks offer additional benefits with their fixed deposit accounts, such as insurance coverage, credit card tie-ins, or loyalty program bonuses. These add-ons can significantly enhance the overall value of the fixed deposit and should be taken into account when deciding.

By keeping these considerations at the forefront, you can make a well-informed choice regarding your fixed deposit account selection in Malaysia.

Diversify Your Investments for Better Returns

While fixed deposit accounts offer secure and assured growth, diversification is key to maximizing your financial returns. Consider integrating your fixed deposit strategy with other investment avenues, such as unit trust funds, stocks, or real estate investment trusts (REITs), to create a balanced portfolio that can yield higher returns over the long term.

Financial advisors often recommend the 50/30/20 rule, where 50% of your income goes to necessities, 30% to discretionary spending, and 20% to savings and investments. Within this 20%, a portion can be directed to fixed deposits, with the rest allocated to a mix of other investment vehicles.