How much interest can you earn per month with 0.25% interest rate hike on fixed deposits?
With the National Bank’s announcement of the overnight policy rate (OPR) increase, banks in the country have increased their lending rates and time deposit rates. If you are a time deposit depositor, then you can also enjoy higher time deposit interest rates.
Before the interest rate hike, the interest rates on time deposits for 1 month, 3 months, 6 months and 12 months were 1.75%p.a., 1.95%p.a., 2.05%p.a. and 2.10%p.a. respectively. After the rate increase, you can enjoy 2.00%p.a., 2.20%p.a., 2.30%p.a. and 2.35%p.a.
Here is an example of how much more interest you can get in 1 month on average after the 0.25% interest rate hike by depositing RM10,000 for 1 month.
If you deposit RM10,000 before the interest rate hike, you will get RM14.58 for 1 month and after the interest rate hike, you will get RM16.67 for 1 month, which means you will get an additional RM2.08 interest. If you deposit RM1,000, you will get an additional interest of RM0.20 for 1 month after the interest rate hike.
If you want to enjoy a higher interest rate on your time deposit, then you can choose to deposit with the Promotional Fixed Deposit. Currently, the highest interest rate of the Promotional Fixed Deposit is about 2.80%p.a.
It is expected that the National Bank will raise the interest rate once again in September this year, so it is recommended that you choose a shorter term time deposit first, so that you can enjoy a higher interest rate on your time deposit as soon as the National Bank raises the interest rate.
