Fixed Deposit Alternatives In Msia That You Didn't Know About

Rachel Lee

Rachel Lee

Last updated 08 July, 2022

For a long time now, Fixed Deposits (FD) have been used by Malaysians to save their funds. However, FDs possess an inflexible nature, requiring its users to put in a high deposit and locking in their money for a long time. It also charges a penalty for those who make an early withdrawal.

Therefore, over the past year, more and more flexible alternatives have been innovated in the world of finance. Most of them are regulated by the Security Commission (SC) of Malaysia and allow users to enjoy favourable rates on their savings with a small capital.

In this article, we will be comparing 4 different FD alternatives in Malaysia. Read on to learn more!

1. StashAway Simple

stashaway-652x375Source: StashAway

As StashAway Simple says, growing your cash should be simple. Users can save their money with ease through the StashAway app, which happens to be incredibly user-friendly.

The money you save with StashAway Simple will go into its underlying funds, AmIncome Fund. Whether you're starting up with RM1 or RM100,000, this FD alternative still makes it possible for you to earn the full projected rate.

What's more, with StashAway Simple, you will be earning stable returns on your cash, so no longer will you need to worry about volatile markets!

Indicative interest rate 2.5% p.a.
Minimum investment amount RM0
Minimum withdrawal amount RM0
Withdrawal period Within 3 to 4 working days
Shariah-compliant No
Salary requirements None
Fees - Net expense ratio of around 0.5% p.a

2. Versa

Screenshot 2022-08-25 084247

Source: The Edge Market

Promoting itself as "the alternatives to fixed deposits, but better", Versa heavily emphasises that its users can earn up to 2.4% per annum, which is on par with conventional FD rates. Since its underlying fund is the Affin Hwang Enhanced Deposit fund, users' money will be invested in highly liquid and low-risk cash instruments.

It's also incredibly easy to start saving with Versa - Malaysians aged 18 and above can start saving or investing through Versa from as low as RM1. They can also withdraw their funds anytime without being charged a penalty fee. Also, similar to StashAway Simple, the Versa app is user-friendly too!

Indicative interest rate 2.4% p.a.
Minimum investment amount RM1
Minimum withdrawal amount RM50
Withdrawal period Within 1 working day
Shariah-compliant No
Salary requirements None
Fees - Management fee of 0.3% p.a.
- Trustee fee of 0.05% p.a.

3. Touch 'n Go GO+

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Source: Touch 'n Go

With GO+, Malaysians can now save conveniently while earning steadily. All you have to do is cash in your eWallet balance into the GO+ feature on the Touch 'n Go eWallet app, and you're set to start earning!

With the Principal e-Cash Fund serving as its underlying fund, this cash management solution allows users to save or invest with a peace of mind.

Further, with GO+, users can make instant withdrawals from their GO+ to their eWallet balance or even use funds in GO+ to make payments. However, users do need to take note of its maximum account balance limit of RM9,500.

Indicative interest rate 1.75% p.a.
Minimum investment amount RM10
Minimum withdrawal amount RM10
Withdrawal period To TNG Wallets: Immediately
To bank accounts: 1 working day
Shariah-compliant Yes
Salary requirements None
Fees - Management fee of up to 0.45% p.a.
- Trustee fee of up to 0.03% p.a.

4. Kenanga Digital Investing (KDI) Save

kdi-laptop-phone-main

Source: Kenanga

Boasting a high payout frequency, KDI Save reflects user earnings on a daily basis, thus allowing users to receive their interest daily on its platform.

Due to its ongoing promotional return rate of 3% p.a. until the end of December 2022 and the fact that it does not charge its users any management fees, the platform has been incredibly popular. Further, with Proprietary Money Market Instruments from Kenanga serving as KDI Save's underlying funds, users can save with KDI Save without worries of volatility in the market.

To start using KDI Save, users will need to sign up for a KDI account, which will also give you access to KDI Invest.

Indicative interest rate 2.25% p.a.
Minimum investment amount RM100 (subsequent minimum investment amount RM10)
Minimum withdrawal amount RM10
Withdrawal period Within 1 to 2 working days
Shariah-compliant No
Salary requirements None
Fees None

So, which of these FD alternatives will you be using? Let us know in the comment section!

With creative wit and an immense passion for writing in her back pocket, Rachel Lee creates impactful content about finance, lifestyle, and more.