62 thoughts on “Where to park your money in Malaysia? Maybank GIA-i

  1. The Maybank website just released the revised rate for GIA, which is lower than 3.45%. Correct me I am wrong on this, and also that premature withdrawal without waiver of profit is not applicable anymore after 1 August 2017.

  2. Hi there, I have several questions as I am new to all these. From maybank page it says that GIA-i is not protected by PIDM and principal is not guaranteed.
    1)Does that mean I might lose my principal anytime?
    2) And If I register a new GIA-i account and say I put RM10k in it, can I go to ATM and press ‘others’ to withdraw it as cash like m2u savers?
    3) If i put RM10,000 with 1 month tenure, i withdraw it 30 days later. With 3.45% as interest rate, I will get (10,000 x 30/365 x 0.0345) = Rm28.35.. I will get Rm10028.35 after one month. Is my calculation right?

    • Hey Winson,

      1. Yes you risk losing your principal IF Maybank goes bankrupt.
      2. Nope, you have to first uplift it online and then withdraw from your savings account.
      3. Yup correct formula.

      Hope this helped! Don’t worry about the PIDM thing. First sign of our economy tumbling, you can always uplift and put into FD.

      • thanks for your info 🙂
        Anyway, if it is not protected by PIDM, does it mean if my account is being hacked or something. the bank won’t be responsible for it?

        • Hey Winson,

          PIDM is protected by the government up to 250K.
          I think if a bank was hacked, they will still be able to function. And a hacking would most probably be covered under the bank’s insurance.

          Hope this helped.

  3. Hi there, do you have calculate the interested been payed is that around the % it mention?
    Bcoz i saw some post mention that the interested paid is variable,and most the time it received with around 2.8% p.a. ?

  4. Doing some research to park my cash. According to the website http://www.maybank2u.com.my/mbb_info/m2u/public/personalDetail04.do?channelId=ACC-Accounts&cntTypeId=0&cntKey=ACC03.04&programId=ACC10-MudarabahIA&chCatId=/mbb/Personal/ACC-Accounts the profit from Maybank GIA-i is share between the bank and the customer. Under “Indicative Profit Rates” is 3.45% but the PSR ratio between bank and customer is 70:30. Does this means the effective interest rate is only 2.145%

    • Hey Daryl,

      If you’re referring to the product type, it’s General Investment Account-i as shown in the pic. Or is this a step I’ve missed out?
      You can send me a pic on FB and I’ll get right back to you.

      • It’s actually Step 3 above where they ask you to choose either Mudarabah Investment Account or Islamic Deposit Account.

        I have opted for Mudarabah Investment Account anyway. Hope that’s fine. Haha

  5. Thank you for sharing this! I have some question… what is the 2months term about if I can have multiple withdrawal?

    May I know can I only withdraw from my GIA account via ATM? I don’t seem to see transfer option from GIA to SA in my m2u 🙁

    • Hey,

      That’s the wonderful thing, it doesn’t matter if its 2 months or a year because you can withdraw any time and get your interest.
      Nope, GIA can be uplifted and placed online. You have to uplift it and it’ll give you the option choose which account to transfer to.

      Hope this helped!

  6. There is a trick to earn the interest. You can withdraw after 6 a.m. in the morning and place the GIA prior to 10 p.m. at night within the same day, you will still be entitled to the 3.45% interest. I have been doing this for the past 6 months.

  7. Divvy nice how to write up on Maybank GIA. I also did made numerous placement since reading it on your blog. Took me a while to get it done, if you had written this post earlier would have saved me a lot of time reading and figuring out how to make my 1st placement.

    And your right, it is a good place to “park” it and when needed can immediately liquidate.

    Soon will have enough bullets to start investing. Inspired by you.

    • Hey Cy,

      Yea I got a lot of messages in my inbox from people having trouble making GIA placements. So I figured some pictures and step by step guide would help. Sorry I took so long man.

      Saving is really important bro, I’m glad to hear you’ve got your war chest prepared.
      Looking forward to having another join our little army man. Hope to hear about your investments soon!

  8. Thanks Divvy and KW, that was very helpful. Ya its quite obvious which to go for,there are just too many charges in PM. Btw Divvy, I’m still looking forward to your writeup on mutual funds 🙂 After years of exclusively investing in mutual funds without any real knowledge, I finally opened my cds account and ready to start investing in shares.Trying to avoid those damned fees and be more in control. Thanks for inspiring me and keep up the great work!

    • Hey Judith,

      Real glad to hear about your new CDS account! Out of curiosity, which broker did you choose to start with?
      As for my article on mutual funds, it’ll be an outright bashing because I feel so strongly for the poor investors. I’ll ruffle a lot of feathers but it’s in the works. You’ll be the first to know when it’s out.

      Also, do let us know when you make that first share investment! It’s an important milestone and I’d like to know what everyone buys.

      Thanks for writing in and for your kind words.

      • I choose HLe broking cos of the high rating in investor.com and ease of application 🙂 Sure will let u know.Thinking of starting with REIT and got a few other choices in mind too.

        • Hey Judith,

          Did you face any issues with HLe? ie. Long processing time?
          Welcome to the dividend army Judith! Remember to keep track of your portfolio yea.

          As always, if you have any questions please feel free to ask!

          • Application was quick easy, just fill in some forms at any branch. But processing took more than a month.I called in to ask and they told me that it takes longer these days.

  9. Hi Divvy, thanks for the informative article. What about Public Mutual’s “Public e-cash deposit fund”? One P.Mutual agent recommended it to me, saying it’s an excellent solution for parking my excess cash there for short term, saying it has higher returns (can’t remember the interest) than saving account, but I did not understand how it works, even after reading the prospectus.(not so well versed in the terminology) Does it really have high liquidity? and how are the interest calculated? Any hidden terms and conditions? I’m also doubtful about the charges incurred and whether there will be a loss if I put in and take it out in a short period, so I did not commit yet. I would like to ask for your opinion regarding the pros and cons of this fund.Thanks!

    • Hey Judith,

      Maybank’s GIA-i is one of the best out there in terms of liquidity as well as high interest rates.

      The e-cash deposit fund is one of many cash management funds out there and they are not liquid at all. If you’re investing in PM shares then yea they are liquid, for others I think you’ll need to wait a little bit.
      Normally, cash management funds like these don’t charge fees. But when it comes to Public Mutual, I won’t be surprised..

      I’ve never invested in public mutual so I can’t give you an opinion on the cash fund. You should get your answers from your agent though. But as I’ve always said.. Stay away from Public Mutual. Do let us know about the interest rate as well as liquidity when you know though. It’d be interesting to compare a few products. Right now, none can compare to Maybank’s GIA-i though. As far as I know.

      Thanks for writing in and I hope this helped!

    • My PM unit trust consultant also tried to sell me this fund before. My advice, stick to MBB GIA-i

      Comparison between both options:
      Return: GIA – 3.45% vs PB e-Cash around 2.90% nett currently (after annual management charges and trustee fee)
      Liquidity: GIA – Funds instantly available upon uplift including Sat/Sun/Public Holiday (at least 1 day after placement), PB e-Cash – don’t know, but if similar to other PM unit trust procedures, redemption funds will be credited next working day.
      Other charges: GIA – none, PB e-Cash – about 0.40% per annum (management charges and trustee fee)

      Both are not PIDM insured.

      So, it’s pretty obvious which is one is better. I pretty much only invest in Bond funds in Public Mutual as it is the most convenient way for a retail investor to obtain exposure in Bonds, to my knowledge. Stay away from the equity & money market funds.

      • Hey KW,

        Thanks for the info! There you go Judith.

        It’s ridiculous how PM charges 0.4% for the management of cash??? Seriously? The manager’s job is just to find safe places to put the cash in.. How hard is that?
        Nothing to say any more about PB Mutual lol.

        Sorry for round 2 of PM bashing..

        Thanks again KW, appreciate it man.

      • Hello.

        Nice article.
        Btw, can you make a comparison between MBB GIA-i and RHB Cash Management Fund 2 in Fundsupermart?

        Thanks

        • Hi Badli,

          Off the top of my head, I’d say GIA gives a higher interest (correct me if I’m wrong) and more liquidity.
          The only thing that the cash fund offered in FSM serves is to provide you a temporary interest bearing account to park your money.

  10. I’ve been sweeping all my balance in my savings account to GIA for about a year now. If I remember correctly, if the GIA option does not appear in the dropdown list, it means you have to go to your Maybank branch and open a new Islamic Fixed Deposit account and make an over-the-counter placement for the 1st GIA deposit. After that, GIA should appear as an option when you make a new GIA placement through M2u.

  11. Hi DM,

    Thanks for sharing this great advice. I have shared it on my FB page so more people would be informed about it and in return my small way of contributing more traffic to your blog for sharing this advice.

    Anyway I have a question, how do you uplift the cash when I have signed up for example RM5k – 1 month tenure? I was playing around with the uplift option but it doesn’t allow me to uplift on the same day I have made the placement, is it some t&c that uplifting can be done only the next transaction day etc?

    Please advice.

    Cheers.

    • Hey Alvin,

      Thank you very much. I really appreciate it. The likes and shares really help me keep the blog running and it helps get more Malaysians started on investing.

      Ah I forgot to mention that you can only uplift on the following day. I guess it gives Maybank some time to sort out the transaction on their end. I’ll update the article, thanks for the catch bro.

  12. Good day.
    I noticed that there is a profit sharing ratio is 70:30. Does that mean 3.45% have to be shared with the bank?
    Thank you.

    • Hey Jeremy,

      Good day to u too my friend.

      Yup profit sharing is 70-30. But no, your 3.45% isn’t shared with the bank. It’s all for you! =D

      Hope this helped and good catch by the way.

      • Thank you so much!
        I always wanted to follow your footstep in share investment. You have done great great job. keep it up! Hope to learn more from you!
        Anyway just parked 5k in this GIA! 😀

  13. Thanks of your sharing.
    I am Maybank2U user.normally park cash at conventional fixed deposit .ya.normally is 3%.
    Next time will park as your recommended.

    • Hey Li Lin,

      It’s good to hear from you again.
      Yup Maybank’s GIA-i is higher. But the main advantage is the flexibility. You can uplift anytime and still get your earned interests!

      Just remember it isn’t covered under PIDM like our FDs are. No issue really though.

      Thanks for writing in! Let me know if the steps are helpful and if I need to tweak them.

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