Would you still be willing to take the risk of investing in mutual funds or stocks when a bank’s FD can pay you 4.40%?
Will you still risk investing in funds or stocks when the bank’s fixed deposit offers can already provide you with a steady rate of return of more than 4%?
With the National Bank raising interest rates four times this year, various domestic banks are currently offering high-interest rate fixed deposit offers, including one from Bank Islam at 4.40% p.a.
Bank Islam provides fixed deposits for 6 months, 12 months, and 18 months. When you store for 6 months, you will earn 4.00% p.a., 4.20% p.a. when you store for 12 months, and 4.40% p.a. when you store for 18 months.
MBSB also provides fixed deposit rates of up to 4.30% per annum. Users can deposit for 6 months, 9 months, 12 months, 15 months, and 18 months, with fixed deposit interest rates ranging from 4.00%p.a. to 4.20%p.a., 4.25%p.a., and 4.30%p.a.
The benefit of fixed deposit is that you can earn a consistent income over a set period of time without risking investment failure or principal loss. Low risk, however, implies low yield, and time deposits cannot provide the same high yields as funds or stocks.
Stocks will be the first choice for investors seeking high yields, but fixed deposits are the best option right now for investors seeking stable yields.
You can choose between risk and investment return, or you can try to strike a balance by investing some funds in time deposits and others in high-yield stocks.
