Foreign Currency Fixed Deposits in Malaysia

Everyone should know what a fixed deposit is. It is a personal investment platform in which an amount of money is kept and given to either a bank or financial institution where the recipient will pay interest to the depositor at certain specified rate. Do take note that the rate of interest paid will differs from bank to bank, amount given and duration of time. Many people are investing more and more in fixed deposit especially foreign currency fixed deposits in Malaysia as it is considered as a safe haven for investors. Foreign currency fixed deposits are basically fixed deposits that are maintained in banks in Malaysia but in foreign currency instead of Malaysia Ringgit. Most banks in Malaysia offer this type of fixed deposits in major currencies like the US Dollar, Euro, Japanese Yen, Pound Sterling and Australian Dollar. More investments on fixed deposit as this is mainly because this type of investment does not have any risks. Moreover, it guarantees a high return as interest will be paid for depositing the money.   

Foreign currency fixed deposits are one of the smart ways to counter the growing inflation and currency fluctuations. It is also a great financial tool for those of you who deal with currencies other than your own national currency. Besides, it is good for those who have business all over the world. It sounds as good as it can be but bear in mind that the account opening for such fixed deposit is highly subject to guidelines published by the Bank Negara. There are quite a number of banks in Malaysia that are offering foreign currency fixed deposits to its Malaysian customers. Some of the banks are offering the foreign currency fixed deposits in both conventional and Islamic banking variants, which you can check out for further details with the respective banks.

Maybank is considered as the most preferred and common bank for the Malaysians. Maybank offers a wide range of deposit schemes to its customers with the foreign currency fixed deposit as one of them. The purpose of the scheme is for those of you who are interested to deposit money in other currencies in order to hedge inflation. Maybank is one of those banks that offer both the conventional and Islamic banking variants. Another common bank to the Malaysians is the CIMB Bank. Its foreign currency fixed deposits are available in popular currencies like the US Dollar and Euro, which offers flexibility in making deposit and withdrawals through cheques, drafts and telegraphic transfers.  

HSBC is also offering foreign currency fixed deposits along with PIDM protection. It is an excellent method to make savings in foreign currency and earn returns at the same time. It is also good for hedging against fluctuations in exchange rate. You can hold the deposit until you find the exchange rate beneficial for you. HSBC fixed deposits are available in almost all foreign currencies. Foreign currency fixed deposits from Ambank are also eligible for PIDM protection a stated in the guidelines prepared by the bank. If you choose Ambank, do take note that it offers these fixed deposits in both forms, either as deposit or current account. Similar to other banks, it is available in almost all major currencies and it provides remittance facility in most countries.

Public Bank is another option when it comes to foreign currency fixed deposit. Do know that the minimum amount required is RM10,000 with deposit period up to 12 months. The interest rate will be calculated based on the number of days that the deposit is being kept and will be paid in the same currency in which the deposit is made. One important point to take note is that premature withdrawal is allowed provided that the deposit has been placed for at least 15 days. Also, half the interest applicable daily will be paid to the deposit holder. Hong Leong Bank offers foreign currency fixed deposits in more than ten foreign currencies, besides offering preferential foreign exchange rates. These help to maximize returns on the foreign currency deposits. In addition, the banks offers free account statement every month and charges an optimum fees for any related services.

There are also OCBC Bank and UOB Bank offering foreign currency fixed deposit. OCBC Bank’s foreign deposits are only for Malaysians or customers with Malaysian PR, aged above 18 years old. The minimum amount of deposit is RM10,000 in any top currencies and the maximum period of deposit is 12 months. On the other hand, the UOB foreign currency fixed deposit is only available for Malaysians with age 21 years old and above. This is a good option if you wish to grow your money via foreign currency fluctuations. One benefit is the flexibility on the tenure, which can be in between 1 to 12 months depending on your choice.   

Citibank also offers foreign currency fixed deposits with choices from over ten different currencies. The minimum amount of deposit required is USD 3000 with tenure ranges from 1 to 12 months. Do take note that these deposits are eligible for PDIM protection according to the bank’ guidelines. For the foreign currency fixed deposits with Alliance Bank, you must be at least 18 years old and above in order to apply, in which the account can be availed either individually or jointly. Deposits from Alliance Bank offer competitive interest rates to its customers. One great benefit of this deposit is that it can be redeemed based on the market current exchange rate of the currency deposited. The bank offers these foreign currency fixed deposits through a huge network of branches. Nevertheless, foreign currency fixed deposits are also available from Standard Chartered Malaysia. These deposits are flexible to maintain and you may remit or convert at a favorable rate.

With so many banks offering foreign currency fixed deposits, it is advisable to look for one that suits you the most, from the amount to the purpose for depositing your money. Some deposits may be more suitable for business purposes while some may be suitable for customers who have children studying abroad or those who are employed overseas. All details in regards to these deposits are available to customers via online banking.

 

Maybank Personal Loan

 

maybank personal loan

Maybank Personal Loan

Form RM 5,000 to RM 100,000 financing available
Interest varies from 6.5% to 8.0% p.a depending loan amount
As low as RM102.78 installment montly
No guarantor and collateral needed
Minimum income of RM 2,500
Aged from 21 years to to 60 years old
Malaysian Citizens only

Maybank personal loan offers from RM 5,000 to RM 100,000 financing ranging from minimum repayment from 2 to 6 years.  There are no guarantor or collateral needed. There are no processing or stamping fees for the application of this loan. Please take not that this is a conventional personal loan and is not an Islamic compliant loan.

Maybank also states that it will take 48 hour for the approval time of the loan. The funds will be transferred to applicants account upon approval of the loan.  Applicants will be required to have savings or current account with Maybank.

Interest Rates

This interest rate will depends on the amount loan. You will get to enjoy lower interest rates with higher amount loan. The loan amount starts from RM 5,000. Borrowong RM 5,000 to RM 20,00 will give you a 8.00% p.a. , RM 20,000 to RM 50,000 will give you 7.00% p.a. while borrowing RM 50,000 to RM 100,000 will give you 6.50% p.a. Please take not that the published rates are flat rates.

Loan Amount Interest Rate p.a
RM 5,000 to RM 20,000 8.00% Flat Rate
RM 20,000 above to RM 50,000 7.00% Flat Rate
RM 50,000 above to RM 100,000 6.50% Flat Rate

Charges and Fees

Maybank Personal loan requires no processing fees and no stamping fees. This loan comes with personal care protection plan from Maybank. There will be a 1% p.a penalty for any late repayment of the loan.  A standard 6% GST is applicable to any service charge by the bank. There will be a RM 200 charge or outstanding 3% (whichever higher applies)  as for for early settlement of the personal loan.

Eligiblity

Maybank personal loan is available for Malaysian citizens only. You will need to be 21 years old to 60 years old by the end of repayment period.  The minimum monthly salary to be eligible is RM 2,500 per month or RM 30,000 per annum for permanent employment.

Documentations

Employed

  • Photo Copy of Malaysian Identity Card  ( Front and back)
  • Most recent BE Form from LHDN with tax receipts
  • Most recent 3 months salary statements
  • Most recent 6 months bank account statements

Self Employed

  • Photo Copy of Malaysian Identity Card ( Front and back)
  • Copy of Company registration
  • Most recent BE Form from LHDN with tax receipts
  • Most recent 6 months bank account statements

 

Repayment Table

Maybank personal loan monthly repayment table is available on the link below

Maybank Personal Loan Repayment Table

Personal Care Plan

Personal Care Plan is insurance plan that will free you from any outstanding debts with Maybank Personal loan. The maximum amount is RM 100,000 in the event of death or total permanent disability.

Pros

  • As little as RM 102.78 payment per month
  • Compulsory Insurance plan
  • Available to private sectors

Cons

  • Rate is rather higher comparative to other loans in Malaysia
 

Standard Chartered Personal Loan

 

standard-chartered-logo

Standard Chartered CashOne , Pinjaman Peribadi
No guarantor and collateral needed
Quick approval
RM 1,000 to RM 150,000 of financing available
Maximum 5 years repayment
Lowest 0.75% monthly interest rate

CashOne

CashOne is unsecured where it does not require any any collateral or guarantor. This loan is not Shariah compliant. CashOne gives finance up to 4 times the customer’s monthly salary. Repayment period of the installment is from 12 months (1 year) to 60 months (5 years) and the interest rates are as low as 0.75% per month. This would amount to 9% p.a. flat rate. 

Applicant will also have the choice to link their CashOne to their credit card limit. For any repayment that is repaid will be converted into credit card limit. Successful applicants will also get to enjoy up to 5 years free annual fees for their Platinum Credit Card.

Fees

There are no processing fees required while late repayment are charge 1% p.a. on a daily basis. Applicant can fully settle the loan before the end of loan tenure based on certain terms and conditions.

Eligibility

An applicant can be a Malaysian citizen or foreigners aged 21 to 65 years old with a minimum monthly salary of at least RM2,000 per month.

Repayment

An applicant must open account with the bank before they could done their repayment. Monthly repayment is via a standing instruction.

Document

Employed

  1. A copy of MyKad (front and back)
  2. Most recent payment slip
  3. Most recent bank statement
  4. Most recent EPF statement
  5. Most recent BE form (income tax)

Self-employed

  1. A copy of MyKad (front and back)
  2. Company registration form
  3. Most recent 6 months bank statements
  4. Most recent BE form (income tax) with receipt to IRB

Repayment Table

SC Personal Loan repayment table

Pros

Among the privileges that a customer could get from this loan package includes

  • Customers don’t have to pay their Platinum credit card annual fee.
  • No lock in period (can overlap) but customers have to send a notice prior a month for the bank to release a settlement letter.
  • Every time a customer paid their monthly installments, their credit card limit will increased according to the amount that they have paid. This could help if they needed some emergency cash or they have out of money in any months albeit it may also be a double edge sword.

 

Quick Cash EDGE

Standard Chartered Quick Cash Edge 
No guarantor and collateral needed
Quick approval
RM 1,000 to RM 250,000 of financing available
Maximum 5 years repayment
Lowest 0.583% monthly interest rate

 

Personal loan scheme called Quick Cash is for employee working for the government or private sector as well as self-employed workers. Minimum amount for the finance for the loan is RM2,000 while the maximum amount is RM150,000 or 5 times the customer’s monthly salary. Minimum tenure for the loan is 12 month (or a minimum of 24 months if the loan amount is less than RM15,000) while the maximum tenure is 60 months (5 years). The interest rate is based on the flat rate up to 0.88% per month, according to the salary, amount and duration of the finance. Customers will be charged a late payment penalty up to 1% from the outstanding amount. This loan package doesn’t need any collateral or guarantor.

Fees

There are no processing fees and early settlement penalties for Quick Cash Edge. There is a 1%p.a. penalty fees for late repayments.

Personal Financing-i

Standard Chartered Personal Financing-i is a fully Islamic compliant loan that is based on Shariah concept. It operates on commodity trading concept. This loan is also requires no collateral and guarantor.

History

Standard Chartered is an international banking group with an extensive network of over 1700 branches and also branches in more than 70 countries in Asian Pacific, South Asia, Middle East, Africa, United Kingdom and America regions. Standard Chartered started its operation in Malaysia in 1875 when its first branch is opened for business in Beach Street, Pulau Pinang. The bank has been incorporated locally as Standard Chartered Bank Malaysia Berhad on 29 February 1984. As the first and oldest bank in this country with over 140 years of history, Standard Chartered up to this day has over 40 branches with 7,000 workers throughout the country.

Today, customers are seeking the personal loan offered by the bank as a deposit for new home, chances, business investment, pursuing studies, settling credit card debt or home renovation. No matter the reasons, the personal financing gives the customers additional finance and freedom to do more than they could think with the loan.