Deep, deep dive
- Before you invest, check that your FD is insured by PIDM
- Check terms and conditions before agreeing to promotional rates
- Split your FD savings into a few smaller accounts
- Make sure you know the penalty of withdrawing funds before the end of the term (prematurely)
- Understand requirements to partially withdraw funds from your FD
Understand requirements to partially withdraw funds from your FD
Sometimes, banks may allow you to make partial withdrawals from your FD account.
In these cases, the bank may require withdrawals to be in multiples of RM1,000. Also, different banks can have different minimum balance requirements.
For example, you may be required to maintain at least RM5,000 in the account, so if you choose to withdraw RM1,000 of that RM5,000, you’ll have to withdraw (or ‘uplift’) the entire fixed deposit.
This is important to note, as this may mean you could lose all the interest on your fixed deposit just so you can withdraw a small portion of it.