It is advised not to place too many long-term deposits as the Bank Negara may increase IR twice this year.
It is advised against making long-term deposits at this time because the Bank Negara may increase interest rates twice this year.
The Overnight Policy Rate (OPR) and other interest rates will be discussed during the Bank Negara’s Monetary Policy Conferences (MPCs), which will be held in July, September, and November.
The Bank Negara is expected to increase interest rates twice this year, with the July increase being almost probable. The rate increase in July will either be 0.25 percent or 0.50 percent at this point.
Numerous domestic banks will raise the interest rates on financial products, time deposits among it, after the Bank Negara lifted the Overnight Policy Rate (OPR).
The current fixed deposit rates for one month, three months, six months, and a year are 1.75 percent per annum, 1.95 percent per annum, 2.05 percent per annum, and 2.10 percent per annum, respectively. The 1-month, 3-month, 6-month, and 12-month fixed deposit rates will be 2.00% pa, 2.20% pa, 2.30% pa, and 2.35 percent pa, respectively, if Bank Negara increases interest rates by 25 basis points.
The rates for 1-month, 3-month, 6-month, and 12-month fixed deposits will be 2.25 percent per annum, 2.45 percent per annum, 2.55 percent per annum, and 2.60 percent per annum, respectively, if Bank Negara decides to raise rates for the first time by 50 basis points.
In order to benefit from a higher fixed deposit interest rate for the first time after the Bank Negara boosts the interest rate, you might try to choose a short-term fixed deposit if you are planning to make one.
You may choose to deposit money market funds (MMFs) in addition to time deposits. Numerous domestic financial organisations and banks have introduced money market funds. Money market funds often offer a little higher interest rate than time deposits and are also more active. Users are free to withdraw money whenever they choose without losing interest.
Money market funds are deposited without being charged any fees, so there is no principal loss.
