What do I need to know about OCBC MYR Fixed Deposit Account?
OCBC MYR Fixed Deposit Account is a form of term investment. You can start saving with as little as RM1,000 and can choose anything between a two month and sixty month term. A one month term is available but the minimum investment is RM5,000.
What's so great about an OCBC MYR Fixed Deposit account?
Several things! Firstly, for investments of more than one year you'll get interest paid out every six months. Next up, the interest rate is compounded daily, which means you would earn more interest compared to an FD calculated monthly. Also, you're allowed to make an early withdrawal if you need to, for whatever reason.
Lastly, this fixed deposit account comes with a standby overdraft that uses your investment as surety against funds you borrow in your current account. To gain access to the overdraft, you must deposit more than RM5,000.
Can I make a partial withdrawal whenever I want?
Yes, you can make a partial withdrawal any time within the investment period. However, the pre-agreed interest will drop to half after that - so it'll be a compromise between having extra cash and forfeiting potential interest earnings!
For example, if a 12-month FD gives you an interest of 3.00% p.a., you're then entitled to enjoy only 1.50% p.a. after the withdrawal is made.
Can I withdraw before the term ends without forfeiting the interest earned?
Yes, if you decide to end the term early, you will get 50% of contracted interest. The only condition is that you must have completed at least three months of the deposit period.
Can I renew this term deposit?
Of course you can. If you do not instruct OCBC otherwise, or cash out this deposit after it matures, then the bank will automatically renew for you under the same terms.