Love2Penang

Hi Everyone

Please help which bank would be the best in terms of service and returns to invest the fixed deposit for MM2H purposes

Thanks

InVinoVeritas

As far as I know you can't actually "invest" the MM2H deposit as it has to be held in a fixed deposit. I doubt there is a great deal of difference between the banks regarding the interest rate paid though.

Davita

HSBC allows the MM2H fixed deposit to be used as a deposit requirement for their Global Premium Service.

NeonHippy

I looked at this a month ago and the FD rates at that time varied from 3.2% to 3.3%. With such a small difference you really need to look at what other accounts and services each bank has to offer and what is important to your financial management. For example if you are retired and bringing in a regular sum from your pension the bank with the best exchange rate could soon recoup any loss from not getting the best FD rate.

Gunnar45

More important is also to split the fixed deposit suminto two separate deposits.
In this way it is less hassle to access the part which canbe used for property purchase, medical, etc.

man from emas

Another point is that until recently you could move the FD each year around banks as the % rate varied but they stopped this now. So where it goes it stays, I don't use HSBC but a few friends do & did but their rate here in Malaysia is generally about .5% below everybody else, you should now be able to get about 3.85%

The problem was that banks always gave NEW deposits a higher rate than existing ones on renewal, so it became a game moving the money around each year, this required a form from M tour signed off to allow transfer so I guess they got fed up with this.

Yes split the FD 50.k & 100.k

Love2Penang

Thanks everyone
Which bank offers 3.85% Help anyone

InVinoVeritas

And for the tax-free car!

Davita

Has anyone given-up MM2H and had to close their bank account in Malaysia?
I'm thinking of relinquishing my MM2H when I visit in February but would like to maintain my FD in MYR until the Xchange rate gets better, and can e-transfer and close the account later.

NeonHippy

Hi Davita,
I suspect people who have given up and gone home are no longer interested in this forum. Did you try posting in or searching the Returning Home forum?

The only insight that I can give is that when we decided to come out for a month checking out places to settle I went along to HSBC to enquire about opening an account in MY (thinking this would save on ATM charges) they informed me that it would not be possible to open an account until I received my provisional MM2H offer. So I guess if you leave MM2H you will be asked to close your account.

What about your bank in Bali? Are they able to offer you a foreign deposit account in MYR? No bank in the west would consider this but when it is your next door neighbour there must be quite a few companies doing trade across the border.

man from emas

To answer questions from:- love2penang & davita -- well as I see it

To check the best rates you really need to go around the banks & actually ask don't expect to find up to date information special promotions on the bank web sites. As mentioned before it seems the money now has to stay in the bank you choose, as at the end of the 1st year you cannot move it around. As new funds always attract higher rates, so you need to discuss this with a potential bank, one way some banks allow it, is if you top up the 150.k with say 10% (i.e. 15.k) they can then accept this as new money, some banks will do this some will not, twice previously I needed to top up but last time I did not require to top up.
Davita
If you cancel the MM2H the money is then released back to the bank so there is no reason why you could not leave it there on say 3 or 6 month FD until you wish to shift it elsewhere.

Gunnar45

Yes, I wouldn't think that the bank would mind if you keep the money with them after cancelling the MM2H visa.
Regarding interests, the advice to check directly with the banks is good.
I would try with CIMB and maybe Affin Bank.
And don't forget that the interest should be paid to your current account and not re-invested in the MM2H FD's.

After you become a customer with CIMB here it is easy to open FD's with other CIMB's like Singapore. Interest on AUD and NZD FD's are higher there.

bakedbean

Am I reading this correctly? Are you saying that CIMB Singapore offers higher interest rates on AUD and NZD FDs than you would get at CIMB Malaysia?

Gunnar45

Hi BB,
YES, you are reading correctly.
At least it was so when I checked on this early this year.
Go to CIMB SG on the web and look.
Welcome to CIMB

Davita

Thanks everyone.
I'm aware the Malaysian Gov't doesn't permit opening a bank account without having an appropriate visa...as do many countries. My question should have been...does anyone know if they require to close an account if the visa expires or is relinquished?
I don't want to return and find I need to immediately exchange to another currency....I'd be better to keep MM2H.
I'm told MYR accounts are not permitted outside of Malaysia but I'll check on that when I visit HSBC Jakarta next week.
I'm sure the banks don't want to lose a client who has fixed deposits...but cannot find any info if the Gov't has the same attitude or rule.