You may wait patiently if they want to make fixed deposits as Bank Negara might increase the interest rate on 8th Sept.
On September 8, the National Bank may announce another increase in interest rates, so friends who wish to make fixed deposits should be patient.
On September 8, Bank Negara will host a monetary policy meeting (MPC) and will thereafter decide whether to hike interest rates. Rate increases from Bank Negara are often anticipated to range from 25 to 50 basis points, with 25 basis points being the most likely.
The Overnight Policy Rate (OPR), often known as the interest rate increase, was raised by the National Bank, which resulted in interest rate increases for a number of domestic financial products. The Overnight Policy Rate and the interest rate on fixed deposits are closely tied.
The interest rate on a 1-month fixed deposit is currently between 1.95% and 2.00% per annum; it is 2.20% for 3-months; 2.30% for 6-months; and 2.35% for 12-months. These fixed deposit rates will rise by 0.25% in response to a 25 basis point increase in interest rates by Bank Negara.
A fixed deposit offer of up to 3.30% p.a. has been made by Hong Leong Bank in terms of promotional fixed deposits.
The requirement for this fixed deposit offer, however, is that the deposit be held for 24 months. AmBank also offers a 12-month time deposit at 3.20% p.a.
A fixed deposit offer from Maybank that pays up to 3% per year for 12 months is also available. Additionally, CIMB offers fixed deposit rates up to 2.85% p.a.
The interest rate on the fixed deposit offer would undoubtedly rise if Bank Negara announces an increase in interest rates on September 8. Currently, 3.30% is the highest fixed deposit preference rate, however after the rate hike, fixed deposit offers of 3.50% p.a. or higher are possible.
It is therefore advised that those friends who intend to make fixed deposits wait patiently.
