eCdD

HSBC of cause is the by far worst choice as has been discussed many times The amount of money you will lose every year is crazy.

There a some things I don´t like at OCBC, but for the FD they are really fair. I am very happy with CIMB also, but I don´t know how the treat you with the MM2H FD.

stepen

​​​​​​Thanks!
Are there others here that have cimb or ocbc and that negotiate the mm2h FD every year ? Wondering how easy it is to negotiate when I only have 150k in a fd and no preferred status and have a fd that can not be transferred to another bank. The "official" cimb rate seems to be 3.25%

eCdD

I want to add that one year I could not negotiate because I was abroad I got a rate still quite high above the board rate with 3.95%. But I have priority status indeed.

stepen

thanks, was that OCBC or CIMB?

stepen

So I spoke to a relationship manager at OCBC in Penang and they offer 4.20% the first year, and the next year it will revert to board rate, which is 2.55% for "non-residents". I'm not sure why there is a difference for non-resident, or why I would be considered a non-resident. Anyway, seems OCBC is out.

SushiFan

stepen

What is the interest rate you get for the FD renewal without negotiating ?

Macsta

Stepen, from my experience with HSBC (even as a premier client) you have zero negotiating power when it comes to annually trying to negotiate your MM2H FD. You get what is given (board rate for premier) and if it less than local banks, tough, you made your choice at the point of original MM2H FD placement.

eCdD is correct regarding HSBC being poor value and I only went with them for the Global View facility because it suits my current circumstances. In addition I am withdrawing 50k of the FD deposit so I can stomach the 100k being effectively 'locked in'.

However I have additional FD's with them and as soon as my circumstances dictate I will definitely be shopping around, these accounts are the only ones you have some consumer leverage, MM2H FD (as you have discovered from OCBC) are 'captive' and as a percentage of the banks business in the greater scheme of things they are irrelevant.
,
The important factor is be fully aware that the decision you make now is final, you cannot 'rate tart' with the MM2H FD, so consider all factors, rate, local accessibility, international access, ease of returning your funds if you decide to leave etc.

eCdD

That was OCBC but not in Penang. Usual business, all branches different. But certainly with this FD nothing is guaranteed, a bank that is friendly to you now can be very bad next year.

But already when I placed the MM2H FD first time, I would have lost RM 3600 in ONE YEAR if I would have chosen HSBC. I am also very happy that I have halved the MM2H FD from 300k after 150k when I bought our condo.

SushiFan

stepen

I will probably go with HSBC 5 year FD @ 4.15%.
almost as good rate as Cimb and easier to not have to bargain every year .

Macsta

That is interesting, did HSBC confirm you can place your MM2H in this FD as it is a murabahah product?

Also I am sure you have heeded the advice by many to split your FD into 100,000 and 50,000 deposits as it is easier if you make an approved withdrawal later on.

stepen

Yes they said I can chose 12 or 60 months. And on renewal can chose 12 or 60 months again .
might do one 60 and one 12.

Davita

I'd suggest also opening a current account and authorize the interest be paid into that account. Otherwise, the interest accrues in the MM2H FD account and cannot be withdrawn.

stepen

So I opened a 60 months FD for 150K, @ 4.15% interest that will be paid monthly, in addition to a 12 month @3.15% (interest paid when due) for another 150K that I can withdraw after 1 year. I was wondering how interest paid monthly will actually affect the interest rates compared to if it was paid after 60 months. I assume if paid after 60 months I would get interest on the interest during the 60 months?
Anyway, nice to have it paid out once a month.

The HSBC Premier service has some nice benefits, however the relationship managers are not very useful.. Provided incorrect information (about USD interest rates), and they can't actually do anything, they can only help to get in line with the real cashiers.
One thing worth mention is that they said before I could do the MM2H FD (I already had an account with HSBC for 2 years) I needed to update my (foreign) tax number, it was a new requirement. I couldn't just tell them the number, they wanted a tax return showing this number. They accepted a PDF copy I emailed. Reminds me on when I opened the account 2 years ago they were also asking for so many documents, and asked for another document for every one I showed them. Anyway, now it's all good, and setup and I don't intend to have much with customer service to do for a while..