Tuesday, 18 April 2023

RHB Fixed Deposit 3.9% vs 12mths T-Bill 3.7%

 


RHB bank is running a new Fixed Deposits promotion of up to 4.1% though realistically while comparing with the upcoming 12 months T-bill, it should be 3.9%




I had in Jan and Feb 2023, benefited from their 5.5% savings deposits promotion, and am considering putting in some monies, to lock-in a higher interest rate before rates start coming down. Fixed Deposit (FD) Minimum placement is $20,000


Comparing against the upcoming 12 months T-bills, with historical prices hovering at around 3.7%, the RHB FD rate of 3.9% is a just a tad higher.



For those who are unaware, the 12 months T-bill is only available every quarter, and closing this week, 19 April



Most of my funds are currently in HSBC deposits, which are already earning 5.55% high interest rate. Logically it does not make sense as High Liquidity (savings deposits) should yield Low Interests. Instead due to promotional rates, High Liquidity is earing High Interests. Well I guess, we are indeed living in strange/uncertain times. These "illogical" interest rates should only be temporal, as banks adjust to the big fluctuations of interest rates, and fight for fresh funds. As the old saying goes, "Money FLOWS where it is treated BEST!"

T-Bills are definately safe as backed by Singapore AAA Gahment  😆

RHB is the 4th largest bank in Malaysia by Assets Size, founded in 1994 with roots all the way back to 1913. There's also $75K individual bank deposits that is fully backed by SDIC

Will bank interest rates continue to climb higher or would it stagnate and even reverse gear soon? Nobody has a 100% accurate crystal ball, and your guess is as best as mine. In financial investments, it's all about managing Risks vs Rewards. Unique individuals need to manage our circumstances differently. It pays to "not put all eggs in one basket", yet not to over-diversify that will consume too much energy. It's all about personal BALANCE!

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