Best SME Fixed Deposits for 2019

Category: SME

Put your business savings to work with a top-rate term deposit.

If your business has a lump sum of cash that you want to park in a short term investment option, business term deposits (or fixed deposits) are available from a range of Malaysian banks. This allows your company to increase returns with competitive interest rates that are higher than a typical business account and improve your liquidity.

When you’re considering your investment options, you’ll need to compare the following to find the best term deposit fit for your needs:

  • Interest rates: The higher the rate, the more interest you’ll receive. Interest rates are usually linked to the investment term, so it’s a good idea to compare between investment terms as you might find that the rate for a 6 month deposit will be more than a 12 month one.
  • Minimum investment amount: With some business term deposits you’ll need to have a higher investment amount than a personal term deposit. Some banks have a minimum RM50,000 deposit while others will only have a minimum of RM10,000.

Top in the market right now.

Based on some research, hands down it has to be CIMB Unfixed Deposit™ (FD) or CIMB Fixed Return Account (FRIA-i). The FD gives you the flexibility to make partial withdrawals while your balance continues to enjoy great rates and FRIA-i is a term deposit account that allows you to make a deposit today and collect cash immediately (operates based on the concepts of Tawarruq and Murabahah in relation to Commodity Murabahah).

CIMB is currently running a promotion, till 30th September 2019 31st October 2019. So if you are considering some profitable yields for your business, visit any one of CIMB’s branches soon. CIMB’s FD/FRIA-i offer competitive interest rates and flexible placement tenures to maximize the returns from your surplus cash and protect against interest rate fluctuations.

Remark: Minimum FD/FRIA-i is RM50,000 and maximum placement is as per Branch Empowerment Matrix for Business Deposits.

Locate a CIMB Branch here

Maybank Business Banking: Fixed Deposit Account or Islamic Fixed Deposit-i

Remark: Minimum deposit required RM 5,000 (1 month) and RM1,000 (2 months and above).

Locate a Maybank Branch here

Hong Leong Business Banking: Business Flexi FD

Remark: Minimum initial deposit: RM50,000.

Locate a Hong Leong Branch here

OCBC Business Banking: Malaysian Ringgit Fixed Deposit

Remark: Minimum initial deposit as low as RM1,000.

Locate an OCBC Branch here

Standard Chartered Business Banking: Yield Enhancing Term Deposit

Remark: Interest is calculated on a contractual basis and paid upon maturity (for tenures of 1 to 12 months) or on a half yearly basis (for tenures of more than 12 months).

Locate a Standard Chartered Branch here

Things to look out for with business term deposits

  • Auto rollovers: Banks would normally notify you when the time is getting near to the end of the investment term and will often let you know of a rollover option. This means that your existing fixed deposit deposit will get rolled over to a new term. While there is nothing wrong with this, generally speaking it’s a good idea before accepting the auto rollover rate, that you do some quick comparisons to see what interest rates other banks are offering for the same amount and term.
  • Early withdrawal penalties: Before your settle on an investment term, particularly if you are thinking of the longer term like 2 years, you’ll want to be pretty sure that you are not going to need (or want) that money sooner. Term deposits come with break fees which mean that if your business needs to take your money out sooner than the time that you’ve initially agreed, you are likely going to have to pay a fee.
  • Low interest rates: Don’t settle for low interest rates on your term deposit just because you already have an account with a particular bank. Most term deposits these days can be opened online and challenger banks often have more competitive rates. The higher your interest rate, the more money you’ll get back at the end of the term so be sure to shop around.