Best 3 Month FD Rates in Malaysia 2026

Short-term fixed deposits work well if you need to park cash for a few months while keeping it accessible. The 3-month tenure gives you flexibility to review your options quarterly without being locked in for a full year.

3-month fixed deposit rates in Malaysia range from 2.40% to 3.20% p.a. depending on the bank and your deposit amount. Longer tenures pay more, but 3-month FDs give you decent returns without committing your money for too long.

This makes sense if you've just received your annual bonus, sold a property, or have cash sitting around waiting for your next investment opportunity. Whether you're in KL, Penang, Johor Bahru, or anywhere else in Malaysia, these rates apply nationwide at all bank branches.

Before comparing specific banks, it helps to understand how these rates work.

Understanding 3-Month Fixed Deposit Rates

Fixed deposit rates for 3-month tenures depend on several factors. Banks adjust their rates based on Bank Negara Malaysia's Overnight Policy Rate (OPR). When the OPR changes, FD rates follow within a few weeks.

The amount you deposit matters. Most banks have tiered rates where larger deposits earn higher interest. The sweet spot starts at RM10,000, where you'll access the better promotional rates. Below RM5,000, the rate barely beats a high-yield savings account.

New money versus existing funds makes a difference. Banks want fresh deposits, so they reserve their best rates for money that hasn't been sitting in the bank already. Moving cash from your current account to an FD at the same bank won't qualify for the promotional rate.

Example: If you're a Maybank customer moving RM20,000 from your Maybank savings account to a Maybank FD, you won't get the promotional rate. But if you transfer RM20,000 from your CIMB account to a Maybank FD, that's considered new funds and you'll qualify for the higher rate.

Online placements get better rates than branch deposits. Banks save on costs when you place the FD through internet or mobile banking, and they pass some of that saving to you through rates that are 0.10% to 0.20% higher. If you're comfortable with Maybank2u, PBe, CIMB Clicks, or your bank's mobile app, go digital to get a better rate.

With that in mind, here are the best options available now.

Top 3 Recommended 3-Month Fixed Deposits

1. Alliance Bank Fixed Deposit (2.3% p.a.)

Alliance Bank Fixed Deposit offers the highest rate for 3-month tenures at 2.3% p.a., but you'll need to meet their new funds requirement. The rate applies to both branch and online placements.

A RM10,000 deposit earns RM57.50 in interest after 3 months. Deposit RM25,000 and you'll receive RM143.75. A RM50,000 placement returns RM286.30.

Requirements:

• Minimum placement: RM500

• Can be placed at branches or via Alliance Online

• Standard early withdrawal penalties apply (forfeit all interest)

Who it suits: Savers with fresh funds from another bank who want the highest 3-month rate. If you're moving money from Maybank, Public Bank, or CIMB, this qualifies as new funds at Alliance Bank. Perfect if you've just received your Petronas dividend, annual bonus from your company, or proceeds from selling your Grab shares.

Protected by PIDM: Up to RM250,000 per depositor.

2. Hong Leong Priority Banking Premium Fixed Deposit (2.25% p.a.)

Hong Leong Priority Banking Premium Fixed Depositgives you the second-highest rate at 2.25% p.a.

A RM10,000 placement earns RM56.26 interest after 3 months, RM25,000 earns RM140.63, and RM50,000 earns RM281.25.

Requirements:

• Minimum placement: RM10,000

• Standard early withdrawal penalties apply (forfeit all interest)

Who it suits: Online banking users comfortable with digital placements who want a competitive rate from Malaysia's largest bank by deposits.

Protected by PIDM: Up to RM250,000 per depositor.

3. UOB Fixed Deposit (2.25% p.a.)

UOB Fixed Deposit offers 2.25% p.a. with a lower minimum of RM500, and no new funds requirement.

After 3 months, a RM5,000 placement generates RM28.13 in interest. Place RM10,000 and earn RM56.25, or RM25,000 for RM140.63.

Requirements:

• Minimum placement: RM500

• No new funds required

• Can be placed at branches or via UOB TMRW app

• Standard early withdrawal penalties apply

Who it suits: Existing UOB customers, or savers with smaller amounts (under RM500) who still want a competitive rate. The RM500 minimum and no fresh funds requirement make this the most accessible of the top three options. Works well if you've saved up from your monthly EPF withdrawals or year-end ASB dividend and want to park it somewhere safe for a quarter.

Protected by PIDM: Up to RM250,000 per depositor.

How to Calculate Your Returns

The calculation for fixed deposit interest is straightforward. Banks use simple interest (not compound interest) for 3-month tenures since there's no chance for interest-on-interest within such a short period.

The formula: Interest = (Principal × Interest Rate × Number of Days) ÷ 365

For 3 months (91 days on average), you can use: Interest = (Principal × Interest Rate × 3) ÷ 12

Or more precisely: Interest = (Principal × Interest Rate × 91) ÷ 365

Example calculation for RM10,000 at 3.20% p.a.:

Using the 3-month method: (RM10,000 × 3.20% × 3) ÷ 12 = RM80.00

Using the precise day count (91 days): (RM10,000 × 0.032 × 91) ÷ 365 = RM79.78

The difference is small but banks use the exact day count, which is why you'll see RM79.78 as your interest payment.

Returns at different deposit amounts:

Now, what if you need your money back before the 3 months are up?

Understanding Early Withdrawal Penalties

Breaking a fixed deposit before maturity costs you. Banks impose penalties because they've already allocated your money based on the agreed tenure, and early withdrawal disrupts their funding calculations.

How penalties work:

Most Malaysian banks follow one of two penalty structures for early withdrawals:

Option 1: Complete forfeiture of interest. You get back your principal amount only. All accumulated interest is wiped out. This is the most common penalty at banks like Maybank, Public Bank, and CIMB.

Example: You placed RM10,000 at 3.20% for 3 months but need to withdraw after 2 months. You'll receive exactly RM10,000 back with zero interest, even though the money was with the bank for 60 days.

Option 2: Savings account rate. The bank pays you interest at its standard savings account rate (around 0.20% to 0.30% p.a.) instead of the FD rate.

Example: Same RM10,000 deposit, withdrawn after 2 months. At 0.25% savings rate for 60 days, you'd receive RM10,000 + RM4.11 = RM10,004.11.

What about partial withdrawals? Most banks don't allow partial withdrawals from fixed deposits. If you need some of your money back, you'll have to break the entire FD. This is why some savers split their deposits across multiple FDs of different amounts, so they can break only what they need and leave the rest intact.

When does early withdrawal make sense:

The 3-month tenure is already short, so there's limited reason to break it early. But if you're facing an emergency and the alternative is taking a personal loan at 6% to 8% p.a., losing 2 months of 3% FD interest is the better option.

If you're 2 months into a 3-month FD, you're forfeiting about RM53 in interest on a RM10,000 deposit. A RM10,000 personal loan for 1 month at 7% p.a. would cost you about RM58 in interest. The penalty is roughly equivalent, but the FD withdrawal is simpler and doesn't require a credit application.

Another example is if your car breaks down and you need RM8,000 urgently for repairs. You've got the money in a 2-month-old FD. Breaking the FD costs you about RM42 in forfeited interest. Taking a personal loan would cost more in interest plus processing fees. In this case, break the FD.

If you prefer Shariah-compliant banking, there are Islamic alternatives available.

Islamic Fixed Deposit Options for 3 Months

Islamic fixed deposits work through a commodity murabahah (Tawarruq) structure rather than traditional profit-bearing deposits. The outcome is similar, but the underlying mechanism differs to comply with Shariah principles.

Current 3-month Islamic FD rates:

PIDM coverage applies equally to Islamic deposits. Your Islamic FD is protected up to RM250,000 per depositor per bank, the same as conventional deposits.

Whether you choose conventional or Islamic FDs, you'll need to know what happens when your deposit matures.

What Happens at Maturity

Fixed deposits don't simply disappear when the tenure ends. Banks have automatic processes that kick in on your maturity date.

Auto-renewal is the default

Unless you tell them otherwise, most banks automatically renew your FD for another term of the same tenure. Your principal plus earned interest rolls into a new 3-month FD at whatever rate the bank is offering on that day.

This can work against you. Promotional rates rarely apply to renewals. If you placed your initial FD at 3.20% because it was a new customer promotion, the renewal is at the standard rate of 2.80% or lower.

How to prevent auto-renewal

You need to give withdrawal instructions before maturity. Most banks require this at least 1 to 3 working days in advance. Methods may vary for every bank:

• Online banking: Many banks let you set your maturity preference when placing the FD or anytime before maturity through their internet banking portal
• Mobile banking: Similar to online banking, available on apps like Maybank2u, CIMB Clicks, Public Bank PBe
• Phone banking: Call the customer service line and provide your account details
• Branch visit: Visit any branch with your IC and account details

Options at maturity

Option 1: Withdraw to savings/current account. The principal and interest are transferred to your designated account on the maturity date. No penalties apply since you're withdrawing at the agreed time.

Option 2: Renew at prevailing rates. Let the auto-renewal happen if current rates are acceptable. Check the bank's website a few days before maturity to see what rate you'll get.

Option 3: Renew with a different tenure. If you decide you want a 6-month or 12-month term instead, you'll need to withdraw and place a new FD. Most banks don't allow tenure changes within the auto-renewal process.

Option 4: Move to another bank. Withdraw your matured FD and place it elsewhere if another bank is offering better rates. Watch out for new fund requirements at the receiving bank.

Timing considerations

Maturity processing happens on the maturity date, not before. If your FD matures on a Saturday, Sunday, or public holiday, most banks process it on the next working day. Your interest calculation stops on the original maturity date though, so you don't earn extra for the weekend delay.

Before you place any fixed deposit, you should know how your money is protected.

PIDM Protects Your Fixed Deposit

Every ringgit deposit in Malaysian banks is protected by PIDM (Perbadanan Insurans Deposit Malaysia), a government agency that guarantees deposits if a bank fails.

The protection covers up to RM250,000 per depositor per member bank. This includes all your deposits at that bank, both conventional and Islamic:

• Savings accounts
• Current accounts
• Fixed deposits (all tenures)
• Islamic deposit accounts
• Joint accounts (split equally among joint account holders)

If you have RM100,000 in a Maybank savings account and RM180,000 in a Maybank 3-month FD, your total is RM280,000. PIDM covers RM250,000. The remaining RM30,000 falls outside the guarantee.

A joint account with two people where each owns 50% counts as RM125,000 per person if the balance is RM250,000. This means each person's RM125,000 from the joint account combines with their individual deposits at the same bank for the RM250,000 limit.

Managing deposits above RM250,000

If you're placing more than RM250,000 in fixed deposits, split it across different banks. Each bank operates as a separate PIDM member, so you get RM250,000 coverage at each institution.

Example: You have RM600,000 to place in 3-month FDs (maybe from selling your condo in Mont Kiara or Penang):

• RM250,000 at Public Bank (fully covered)
• RM250,000 at CIMB (fully covered)
• RM100,000 at Hong Leong (fully covered)

All RM600,000 is now protected. If you placed all RM600,000 at one bank, only RM250,000 would have coverage.

This matters because bank failures have happened in Malaysia's history, most notably during the 1997 Asian Financial Crisis. While major banks like Maybank, CIMB, and Public Bank are very stable, PIDM protection gives you extra security regardless of which bank you choose.

What PIDM doesn't cover? Investments aren't protected. Unit trusts, bonds, shares, structured products, and other investment instruments don't fall under PIDM even if you bought them through your bank. These are separate from deposits.

Foreign currency deposits have separate coverage limits and conditions. The RM250,000 limit applies to ringgit deposits only.

Checking if your bank is a PIDM member

All licensed banks in Malaysia are PIDM members. This includes conventional commercial banks, Islamic banks, and investment banks that take deposits. You'll see the PIDM logo displayed at branches and on bank websites.

Ready to get started?

Steps To Open FD Account

Opening a fixed deposit account in Malaysia is straightforward, whether done online or at a branch.

Start by comparing current rates using the table above or RinggitPlus's fixed deposit comparison tool. Rates change frequently, so it's worth checking just before placing the deposit. During comparison, look into promotional rate requirements. Many banks offer 0.20% to 0.50% p.a. higher for new funds, online placements, or specific customer segments like senior citizens or payroll account holders.

Minimum deposits for better rates typically start at RM10,000. For amounts exceeding RM250,000, splitting across multiple banks ensures full PIDM coverage on each deposit.

Most banks allow maturity preference settings during placement, options include auto-renewal, transfer to savings, or holding for instructions. Choosing this upfront avoids last-minute decisions when the FD matures.

Online placement usually offers better rates and takes about 5 to 10 minutes. After logging into internet or mobile banking, navigate to the fixed deposit section, select tenure (3 months), amount, and source account, then confirm the rate and maturity date. The bank provides a certificate number or confirmation email after submission—keep this accessible since it's needed for checking details or requesting early withdrawal.

Banks don't always send maturity reminders, so keeping the confirmation on hand helps track the deposit.

Frequently Asked Questions (FAQ) About Fixed Deposit

Can I place a 3-month FD if I don't have an account with the bank?

Most banks require you to have a savings or current account before placing an FD. The FD amount is debited from your account, and interest is credited to the same account at maturity. If you're a new customer, you'll need to open an account first, which takes 30 minutes to a few days depending on the bank and whether you apply online or at a branch.

What's the minimum amount for a 3-month FD?

Most banks accept fixed deposits starting from RM500, but the better promotional rates kick in at RM5,000 or RM10,000. Below RM5,000, you're getting a rate that's barely above savings account rates (around 2.20% to 2.50% p.a. for 3-month tenures).

Can I add more money to my FD after placing it?

No. Fixed deposits are locked at the amount you place. If you want to add more money, you'll need to open a separate FD. Some savers split their deposits across multiple FDs of different amounts so they can break only what they need if an emergency arises.

Can I break my FD before the 3 months are up?

Yes, but you'll face penalties. Most banks either forfeit all your interest or pay you at the savings account rate (around 0.20% to 0.30% p.a.) instead of the FD rate. Given the short 3-month tenure, there's limited reason to break early unless you're facing a genuine emergency.

What happens if I forget to renew my FD at maturity?

The FD automatically renews at the prevailing rate for another 3-month term unless you've given withdrawal instructions. This is not ideal since promotional rates rarely apply to renewals. You could end up with a lower rate than you'd get by shopping around or placing a fresh FD at another bank.

Can I transfer my FD to another bank?

Not directly. Fixed deposits can't be transferred between banks. You'll need to wait for maturity (or break the FD and face penalties), withdraw the proceeds, and place a new FD at another bank. Watch out for new fund requirements at the receiving bank if you're hoping to qualify for their promotional rate.

Is an FD better than a savings account for 3 months?

The difference isn't huge for such a short period. High-yield savings accounts offer around 2.50% to 3.00% p.a. with full flexibility, while 3-month FDs offer 2.30% to 3.20% p.a. The FD locks you in but gives you more certainty. If you value access to your money more than an extra RM20 to RM30 in interest over 3 months, stick with savings.

Do Islamic FDs work the same way as conventional FDs?

Yes. You place money, get a guaranteed return, and receive your principal plus profit at maturity. The underlying structure is different (commodity trades rather than interest-bearing loans), but the experience for depositors is nearly identical.

For Malaysian Muslims, this matters because you want to ensure your savings are halal. The Shariah advisors at Maybank Islamic, CIMB Islamic, RHB Islamic, and other Islamic banks have approved these Tawarruq structures as compliant with Islamic finance principles.

What's the difference between a fixed deposit and a time deposit?

In Malaysia, these terms are used interchangeably. They refer to the same product where you place money for a specific tenure at a fixed rate. Some banks use "fixed deposit" and others use "time deposit" on their platforms, but there's no difference.

Can I use my FD as collateral for a loan?

Yes. Most banks allow you to pledge your FD as collateral for personal loans or overdraft facilities. The loan amount is 90% to 95% of your FD value, and you'll pay interest on the loan while your FD continues earning its rate. This can make sense if you need cash but don't want to break your FD and forfeit interest.

Will BNM’s interest rate changes affect my existing FD?

No. Your FD rate is locked in when you place it. If Bank Negara Malaysia adjusts the OPR during your 3-month tenure, your rate stays the same until maturity. OPR changes affect new FD placements and renewals, not existing deposits.

How do I know if my money is safe in a fixed deposit?

All deposits in Malaysian banks are protected by PIDM up to RM250,000 per depositor per bank. This includes fixed deposits. If a bank fails, PIDM guarantees you'll get your money back (up to the limit) within a few months. All licensed banks in Malaysia are PIDM members.