What do I need to know about Hong Leong Junior Fixed Deposit?
Hong Leong's Junior Fixed Deposit is a combination of fixed deposit account and Junior Savings Account (with a Junior Debit Card) rolled into one - Ideal for parents who want to save for their children's future because it earns higher interest rate for a fixed period. You'll also enjoy the flexibility and convenience of withdrawing extra cash when you need it.
This account is open to all Malaysians, permanent residents, and non-residents below the age of 18. You, as a parent, can open this fixed deposit for your child with just RM1000.
Give me the benefits for the Junior FD?
Firstly, you'll make good profit on your investment from a high interest rate, which is calculated daily for both Junior FD and Junior Savings Account. Interest is paid directly to your accounts every month.
If you want to try something a little bit clever ask for a Standing Instruction that can transfer money from the Junior Saving account to the Junior FD in multiples of RM1000 up to RM5000 whenever the balance in Junior Saving account exceeds RM2000. Kind of enforced saving - great if your kid is looking to go to Uni, or stashing cash away for some big purchase when they go out into the wide world of work.
Can I withdraw some of the fixed deposit before maturity?
Yes, you can, this is a pretty flexible FD so you can make early-partial withdrawals from the fixed deposit account and still earn interest on the remaining balance. The withdrawal must be in multiples of RM3000, with a RM2 fee for subsequent withdrawals within the same month. Great to now you'll be able to get your hands on money when you need it most.
How do I open this Fixed Deposit for my child?
The parent(s) or legal guardian of the child must make the application. You just need the child’s birth certificate and Identification Card (if any) to sign up. When your child turns 18 years old, the Junior Savings Account will be automatically converted into a normal joint savings account with you and your child as the owners.
Does PIDM protect this Fixed Deposit Account?
Yes, PIDM protects both the Junior Savings account as well as the Junior FD. If ever the bank goes up in smoke you'll be insured to the tune of RM250000.