Where to park your money in Malaysia? CIMB Unfixed deposit

CIMB Unfixed Deposit

CIMB Unfixed Deposit
CIMB Unfixed Deposit

Seeing as how my last post on Maybank GIA-i was so useful for everyone, here is another avenue for Malaysians to park their hard-earned money for better returns. A few of our readers sent me info regarding CIMB Unfixed Deposit but I didn’t want to have an article up on it because it was ending soon and it’s a promotion and thus not recurring like Maybank’s GIA-i.

However, seeing as CIMB has renewed the promotion up to 30 June, I feel it is my duty to have this up asap.

I’ll be making some indirect comparisons between CIMB Unfixed Deposit and Maybank GIA-i so you’ll be able to make a more informed decision.

PIDM Protection

So first thing’s first, CIMB Unfixed Deposit is covered under PIDM. One of the main put-offs of Maybank’s GIA-i for many of you was that it wasn’t protected by PIDM. So if that was your main concern, you can now opt for CIMB’s promotion worry-free.

If you’re still unfamiliar with PIDM, basically it is an insurance on your deposit placed with banks covered by the government. For individuals, you’re covered up to RM250K. So if you deposit more than that amount, the remainder will be lost should the bank go bust.

The Terms

The current promotion gives you 3.9% per annum for a 6-month placement and 4.1% per annum for a 12-month placement.

There’s a minimum placement of RM10,000 required for both the 6 and 12-month unfixed deposit. Which is very reasonable in my opinion. However, you’ll be slightly inconvenienced because CIMB requires you to head to their branch to make a placement for their unfixed deposit.

Early withdrawal of CIMB Unfixed Deposit before the FD’s 3-month tenure will see any interests earned nullified. From the 4th month on, you will be entitled to 50% of the interest earned. That’s the gist of it. This right here is the deal breaker for me.

The rates given are applicable for one cycle only and interest earned will be credited to your CIMB Current / Savings account. So if you’re not a CIMB customer, you’d be required to open an account with them. Not a bad way for CIMB to bring in new customers.

The complete T&C sheet can be found hERE.

My Take

I personally won’t be taking up CIMB’s offer this time around. If this promotion was offered by Maybank, I’d hop on it immediately. The 4.1% p.a. is really attractive but I still prefer Maybank’s GIA-i. Here’s why: CIMB is actually telling you, yes you can withdraw/uplift your Un-FD early but if you do that, you’ll either get ZERO interest or half interest.

And what’s 50% of 4.1% per annum? 2.05 f*cking percent per annum. Pardon my french but I’d be better off placing that in Maybank’s GIA-i account or M2U savers and earn more. 

However! If you’re sure you won’t be using your money for a year, take up this promotion and place your money there. The 4.1% is pretty high and in the unlikely event where you need to make an early withdrawal, you can do so and still retain 50% of your interest (assuming you’ve passed the 3-month mark). This is a way better deal compared to conventional FDs.

Seriously, if you have a lot of FDs lying around, consider moving your money to CIMB Unfixed Deposit before the promo ends. The interest is high and you’ve got your behind covered in case you need to withdraw early.

I’d like to know how many of you have already made your placements for CIMB Unfixed Deposit. Are there better FDs out there with higher interest rates in comparison?