Fixed Deposit Rate Malaysia Calculator 2025 Guide for Employers

Fixed deposits (FDs) remain one of the most reliable ways for Malaysian businesses to grow their surplus funds without taking unnecessary risks.

With stable returns and guaranteed protection, they are a favourite tool for both short-term cash parking and long-term savings.

Find the explanation on how FD rates work and the list of FDs in Malaysia in this article.

What Is a Fixed Deposit (FD)?

A fixed deposit, or FD, is a savings product offered by banks where you place a certain amount of money for a fixed period, usually between 1 and 12 months or longer. In return, the bank pays you a guaranteed interest rate. The rate is agreed upon at the time of placement and does not change until the maturity date.

An FD is often a safe place to park excess company funds that are not immediately needed. Instead of letting that money sit idle in a current account with little or no interest, placing it in an FD can help the business earn extra income without taking unnecessary risks.

Why FDs Matter for Employers

FD gives various of benefits that are useful for employers. These are the reasons why FDs matter for employers:

Guaranteed Return on Investment

Unlike other investments that fluctuate with the market, FDs give a fixed interest rate. It means you know exactly how much your company will earn by the maturity date.

Competitive Interest Rates

Banks in Malaysia often run FD promotions to attract deposits, especially during festive seasons or year-end periods. By comparing rates, employers can lock in higher returns for their business funds.

It Pays to Be Loyal

If your company has been a long-term customer of a bank, you may be offered better FD rates or flexible terms. So, you can build a stronger banking relationship while maximising returns.

The Difference Between Savings and Fixed Deposit Accounts

A savings account gives you easy access to your money anytime, but the interest rate is usually low and can change without notice.

An FD requires you to keep your funds in the account for the agreed term, but in return, you get a higher, fixed interest rate.

For business purposes, savings accounts are good for daily transactions, while FDs are better for storing funds that you won’t need immediately.

How Many Types of FDs Are There?

There are two types of FD:

Step-Up Fixed Deposit

The interest rate increases at set intervals during the FD period, giving you better returns if you can keep the deposit longer.

Fixed Deposit with CASA Bundling

This combines an FD with a current or savings account (CASA). You place a certain amount in FD while maintaining a linked CASA account, often with perks like instant interest payouts or higher overall rates.

Fixed Deposit Rate in Malaysia 2025

FD rates in Malaysia vary depending on the bank, deposit amount, and tenure. To find the best rates, employers can use a fixed deposit rate Malaysia calculator to compare offers from different banks quickly.

Below are the list of fixed deposit rate in Malaysia 2025 based on RinggitPlus.

Fixed Deposit	FD Rates	Deposit Period	Minimum Deposit	Early Withdrawal	Depositors’ Insurance
Bank Rakyat	3% - 3.75% p.a.	1 - 60 months	RM500	No	Malaysian Government
Bank Muamalat	2.95% - 3.50% p.a.	1 - 60 months	RM1,000	No	PIDM
HSBC	2.50% - 3.45% p.a.	1 - 60 months	RM1,000	Yes	PIDM
MBSB	3% - 3.90% p.a.	1 - 60 months	RM500	No	PIDM
Al Rajhi Bank	2.65% - 3.35% p.a.	1 - 60 months	RM500	Yes	PIDM
BSN	3.50% - 3.45% p.a.	12 - 60 months	RM5,000	No	PIDM
Agrobank	2.75% - 3.55% p.a.	1 - 60 months	RM1,000	No	Malaysian Government
Maybank	2.50% - 2.80% p.a.	1 - 60 months	RM1,000	Yes	PIDM
CIMB	2.50% - 2.80% p.a.	1 - 60 months	RM1,000	Yes	PIDM
Bank of Nova Scotia	2.65% - 3.10% p.a.	1 - 12 months	RM1,000	No	PIDM
Public Bank	2.50% - 2.70% p.a.	1 - 60 months	RM1,000	No	PIDM
RHB Islamic Bank	2.60% - 2.80% p.a.	1 - 60 months	RM1,000	Yes	PIDM
OCBC	2.55% - 2.85% p.a.	1 - 60 months	RM1,000	Yes	PIDM
Alliance Bank	2.75% - 3.10% p.a.	1 - 24 months	RM500	No	PIDM
Affin Islamic Bank	2.25% - 2.35% p.a.	1 - 24 months	RM500	Yes	PIDM
Standard Chartered	2.50% - 2.70% p.a.	1 - 12 months	RM1,000	No	PIDM
Hong Leong Bank	2.15% - 2.35% p.a.	1 - 60 months	RM500	Yes	PIDM
AmBank Islamic	2.00% - 2.90% p.a.	1 - 60 months	RM500	Yes	PIDM
India International Bank	2.70% - 3.10% p.a.	1 - 60 months	RM1,000	No	PDIM

Where to Check Latest FD Rates

Websites like RinggitPlus and StashAway publish updated bank rates regularly.

Employers can also check directly with major banks such as Maybank, CIMB, RHB, and Public Bank. Comparing multiple banks before placement helps maximise returns.

Can I Make Full or Partial Cash Withdrawals?

While FDs are meant to stay untouched until the end of the term, early withdrawal is possible but may come with reduced interest or penalties.

Placement of 1, 2 or 3 Months

If you withdraw your FD before maturity, most banks will not pay any interest for short-term FDs of three months or less.

Placement of More Than 3 Months

If the FD is longer than three months, some banks may still pay partial interest if you withdraw early, but it will be lower than the agreed rate. This is why it’s important to match the FD tenure with your company’s cash flow needs.

How Safe Are My Deposits, Really?

FDs provide both returns and security. In Malaysia, FDs are protected by PDIM.

Protection for Commercial Banks

Deposits in commercial banks are protected by Perbadanan Insurans Deposit Malaysia (PIDM) up to RM250,000 per depositor per bank.

Protection for Co-operative Banks

Deposits placed with co-operative banks are protected under different schemes, depending on the institution. Always check if your bank is PIDM member before placing funds.

How About Islamic Deposit Accounts, Is It Haram?

Islamic FDs operate based on Shariah-compliant contracts. Instead of “interest,” they use profit-sharing or other permissible structures. These are approved by the bank’s Shariah board and are not considered haram.

How Do Employees Open A Fixed Deposit Account?

To open an FD under the company’s name, you will usually need:

Company registration documents (SSM profile)
Board resolution (if required)
Authorised signatories’ details and identification
Initial deposit amount

Once the account is set up, you can manage placements and maturities either at the branch or through online business banking platforms.

FAQs

What’s the difference between individual and corporate FD rates?

Corporate FD rates may differ from individual rates, often depending on the deposit size and bank relationship.

Is FD interest taxable for businesses in Malaysia?

Yes, interest earned on corporate FDs is taxable as part of business income.

Can EPF or company retirement funds be placed in FD?

This depends on the fund’s regulations and investment policy.

Can I open FD under company name?

Yes, provided you submit the required business documents to the bank.

What’s the safest bank in Malaysia for FD placement?

All PIDM-member banks offer the same protection limit, so “safest” depends more on your banking relationship and service quality.

Are Islamic FD accounts different in return structure?

Yes, they use Shariah-compliant contracts and profit rates instead of interest.

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