Malaysia best fixed deposit rates [July 2024]: Maximise your savings

In 2024, savers and investors in Malaysia are on the lookout for opportunities to maximize their returns in a financial landscape where the Overnight Policy Rate stands at a notably high 3.00%. This prevailing rate environment not only impacts loan repayments but also hints at potentially higher yields for fixed deposits. 

Fixed deposits are a cornerstone of conservative investment strategies, offering higher interest rates compared to regular savings accounts, with the added advantage of fixed terms that help in planning your financial future with greater certainty. 

Given the plethora of fixed deposit products offered by banks across Malaysia, selecting the most suitable option can be a daunting task. Each bank tailors its fixed deposit accounts to attract different types of savers, from those looking for short-term parking spots for their cash to those aiming for longer-term growth. 

Recognizing the need for a guide through this maze of choices, especially at a time when every percentage point in interest rate can make a significant difference, we have meticulously analyzed the market to bring you the best fixed deposit rates in Malaysia for July 2024. 

Best Malaysia Fixed Deposit Promotions July 2024

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 July 2024

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. Whether you're planning a short-term saving strategy or looking for a longer commitment with a higher yield, the below plans would serve your purpose.

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

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.

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. StashAway Simple also does not impose a minimum or maximum deposit to earn the projected rate of 3.6% p.a..

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 Malaysian Bumiputera 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.

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.