Re: Opening a Bank Account in Kuala Lumpur
 

Well all went well have visa and bank account set up went very smoothly. One tiny bit of advise....I got a local sim as soon as I arrived in KL and used this number in all the info you need to set up a bank account. I will not be returning to KL until Dec/Jan So as this was a Pay as you go sim the number would lapse...so I extended its life by paying a small amount to last for 6 months. Yvonne seemed to indicated that all hell would break loose if you had to change number with the bank. This may not be true but not prepared to mess up at this final stage! Anyway good news got VISA!!!!!

Re: Opening a Bank Account in Kuala Lumpur
 

Hi Nowoolymits,
with HSBC (and presumeably with other banks) every transaction that occurs on your credit or debit card you get a no charge SMS asking you to contact HSBC if you did not authorise that particular transaction. Quite nifty in fraud in fraud protection, and the SMS occurs no matter how small the amount, but might explain why the banks are so sensitive about not having a valid mobile number.

Re: Opening a Bank Account in Kuala Lumpur
 

Congratulations NWM on your visa.

I am also with HSBC but cannot remember giving a local number for my application although I had one bought at the airport for my visa visit. I am not yet living in MY so I am not using my accounts for transactions so its immaterial but for sure when I do settle I will get a permanent local number so I will want it adding (or amending).

"All hell will break loose at the bank" - I am sure its my money and they are just the custodians at my behest so I hope they try that one on me.

I am bound to them with the FD but any other money I have with them I can transfer as I like, watch any attitude change then.

I hope you have a great life in MY :nod:

Re: Opening a Bank Account in Kuala Lumpur
 

Goodness me....Macsta I only meant it may be an inconvenience to you further down the line. Helpful I thought.

Re: Opening a Bank Account in Kuala Lumpur
 

Sorry NWM didnt mean to scare you :cool: my ire was aimed at the potential lack of service by banking institutions (well documented on this forum).

Being fair HSBC on my visit were most helpful even when I turned up with a bundle of cash that they couldn't accept they guided me to the best solution at hand.

Any advice is always most gratefully received.

VISA cheaper than Transferwise
 

We've discussed transferwise earlier in this tread, and I just transferred some funds from USD to MYR monday at rate 4.2655 (- minues their fees and wire costs). Then I checked visa's exchange rate and found it to be 4.2704200812 if your card doesn't have any foreign currency fees (which mine doesn't) or other fees.
So instead of using transferwise it is even cheaper to just use ATM (provided you have a card with no fees).

So I'm wondering if I need to move some funds over, I can over a period of a a couple of weeks withdraw up to US$1000 every day and deposit into HSBC in Malaysia. Are cash deposits looked at with suspicion in Malaysia? Or will it be ok to deposit say 10K or more ringgit at a branch?

Re: VISA cheaper than Transferwise
 

Hi Stepen,
any amount above RM3000 is reported. But in the same way if you transferred RM100,000 using Transferwise (it would be reported) you would be able to show the source of the funds so while it would pose a red flag as you can explain the source of the funds you would be ok.

Re: Opening a Bank Account in Kuala Lumpur
 

Hi Gunnar45,

my investigations of rates and returns has found a difference between the better Islamic rate (profit) and the normal FD rate. The difference is that a normal FD is covered by the government guarantee on bank deposits, while the Islamic FD is not covered as it is considered an investment product (profit). Not necessarily a big deal as long as one understands that the additional return from profit does include additional risk (might be small risk)

Re: VISA cheaper than Transferwise
 

Sure, this can happen every day. Especially when the MYR is gaining or losing heavily from one day to the next, the CC cards companies sometimes follow not so fast. These are the days when I run with my Master Card to the next ATM ;)

By the way, in 90 to 95 % of the days (in earlier times 100 %) the Master Card exchange rate is better than Visa. Nowadays the gap is most of the time quite small, two years before it was huuuuuuuuuuuuge. That is also the reason why they throw a no fees visa card to you on every corner and one from Master Card is quite hard to get.

I had a EUR to MYR transfer on Tuesday (9000 €), Mastercard was 5,084471,
Visa was 5,079196 MYR and Transferwise gave me 5,080536 including their usual 0,7% fee.

So not too much difference, all good options, all way better than having the banks involved.

Re: VISA cheaper than Transferwise
 

For those transferring funds using Transferwise where the currency is not USD or GBP the rate they quote on the day is not guaranteed. (check the exchange rate line). As an example, if I wanted to transfer AUD 5000 to RM then Transferwise will look for someone wanting to transfer RM to AUD. If they cannot find sufficient coverage within their own systems then they will use bank exchange rates instead. So for most currencies Transferwise is unsure whether there will be sufficient coverage hence no guarantee. This recently happened to me where the cash rate for AUD in Penang on the day was RM3.39 to 1 AUD, and I ended up only getting RM3.36 4 days later when the transfer was completed. So sometimes the instant transfer with a guaranteed rate is better than the rate you may be in a few days time.

Re: VISA cheaper than Transferwise
 

I'm not sure if that's the way it works. As you cannot transfer from MYR.
They probably have some other arrangement, giving them access to interbank rates.

Re: VISA cheaper than Transferwise
 

I know there are restrictions on transferring money out of Malaysia but I have done so successfully (using HSBC). That said I did look at Transferwise and they don't give an option to do a transfer out of Malaysia so I you are correct as far as Transferwise is concerned.

Presumably for some currencies such as GBP and USD Transferwise must be able to quote a definite rate because of the volume coming into Malaysia (presumably a locked in rate from a Malaysian bank) while for other currencies they must get a rate based on the day of the transfer.

Re: VISA cheaper than Transferwise
 

No, it is not working in this way. For EUR and the other currencies apart from USD and GBP they indeed do not guarantee the rate, they will use the rate of the day your Euros arrive at their account. This can be better or worse than the rate of the day you set up the transfer. For example, when I set up the transfer last monday, the rate was 5,0993 and on Tuesday when my money reached them I got 5,1161(before the 0,7% fee). You can protect your transfer from a rate drop by setting a maximum spread of 0,5 % on the downside which of cause I always do.

Re: VISA cheaper than Transferwise
 

Thanks for clarifying how Transferwise works in Malaysia .... quite different from when I have used it to transfer money between UK and Australia.

Re: Opening a Bank Account in Kuala Lumpur
 

Simon2017,
In response to your post #88,
It seems to me that the Islamic deposits are eligible for protection.

See for example:
Fixed Return Income Account-i (FRIA-i) – Maturity Returns

and follow the link:
'Eligible for PIDM Protection. To view PIDM's brochure, click here'.

See item 10 in the brochure.

Re: Opening a Bank Account in Kuala Lumpur
 

Hello All,

Currently in the MM2H process and researching banking and having funds in place for FD.

HSBC appears to be easiest from the USA but the stories here are waving me off from them.

Does CIMB offer the option to open a USD account along with MR current and MR FD for MM2H?

Thank you in advance for your input,

Re: Opening a Bank Account in Kuala Lumpur
 

Re: Opening a Bank Account in Kuala Lumpur
 

Thanks Gunnar45! I guess I could have googled that :)

Re: Opening a Bank Account in Kuala Lumpur
 

Hi macmagrduer, I use HSBC but primarily for the use of their Global View service which in my current situation being outside MY is the only feasible option open to me.

I haven't experienced bad service from HSBC but as yet I do not physically interact with any of their MY branches but online I have opened FD's with no issues and it all works pretty well as expected.

My MM2H agent recommended CIMB but I do not know their coverage or systems well enough to give any pros and cons for international transfers.

It will be interesting to see CIMB current MM2H FD rate as previously it has been higher than HSBC.

Best of luck :fingerscrossed:

Re: Opening a Bank Account in Kuala Lumpur
 

Thank you Macsta,

As I travel globally for work HSBC looked like the right option with branches worldwide. Good to hear you've not had negative experiences.

The MM2H fixed deposit rate is not a deal breaker but why turn down an extra point or two over ten years is a factor as well but maybe that comes down to negotiation at the table.

Do ATMs in Penang and KL dispense USD and/or Euro or is that a rare find? That will factor in the need for a USD account locally.

Appreciate the feedback,

Re: Opening a Bank Account in Kuala Lumpur
 

As far as I know, no ATM's dispense other than MYR.
And I was informed by CIMB that if a forex account doesn't allow cash withdrawals in forex! (This is however possible in Singapore)

Re: Opening a Bank Account in Kuala Lumpur
 

CIMB has just recently renewed my MM2H FD. Over the previous 12 months I received 3.55%. For the coming 12 months will I receive 3.85%.

Re: Opening a Bank Account in Kuala Lumpur
 

For info, HSBC gave me 2.9% last year and it will be the same this year.

Re: Opening a Bank Account in Kuala Lumpur
 

Hi Mac,
If you are a premier customer in the US (or elsewhere) suggest you ring HSBC Premier Malaysia and make an appointment with a relationship manager. That's what I did before I arrived in Malaysia and had no problems at all with opening accounts. I was also able to transfer money immediately from overseas into HSBC Malaysia and got a debit card on the spot which enabled me to live without carrying around too much cash. Also got a fee free credit card. I have foreign accounts (Euro, USD, GBP) with HSBC Malaysia but am not aware of the ability to withdraw in cash USD from the USD account. By the way FD rates on USD at HSBC is 1.18% for 9 months which may be better than you are getting in the US.

Re: Opening a Bank Account in Kuala Lumpur
 

Hi Simon, not to hijack macmagrduer topic but regarding a credit card, when you applied was it straightforward? The reason I ask is I am sure I read it is different in MY if you are retired and you have to lodge money (as a guarantee I expect). I'm not yet retired so when I asked HSBC MY they just gave me an application to complete which I didn't as not being based in MY it seemed superfluous to needs. Does anyone have experience of a retired credit card application?

Hi macmagrduer, just be aware (as the good folk on this forum previously advised me) the FD rate any of the banks give you is not given for the full 10 years, it is renewed annually at whatever rate they wish to offer and you are locked into the bank you initially choose. I am getting 2.9% with HSBC but even if they drop the rate then the Global View facility suits my circumstances. If you join CIMB and the rate was 3.9% then this might reduce in the future and if it is at parity with HSBC you might wish you took advantage of the worldwide network they have. Just a thought.

Re: Opening a Bank Account in Kuala Lumpur
 

I was told by HSBC that I would need to have Malaysian income to get a credit card.

Re: Opening a Bank Account in Kuala Lumpur
 

[QUOTE=Macsta;12381664]Hi Simon, not to hijack macmagrduer topic but regarding a credit card, when you applied was it straightforward? The reason I ask is I am sure I read it is different in MY if you are retired and you have to lodge money (as a guarantee I expect). I'm not yet retired so when I asked HSBC MY they just gave me an application to complete which I didn't as not being based in MY it seemed superfluous to needs. Does anyone have experience of a retired credit card application?

Hi Macsta,
I applied for my credit card at the same time as I deposited my MM2H FD with HSBC. The income requirements from memory were MR30k pa which is less than the income requirements for MM2H. I just used some of the income statements that I gave for my MM2H and there were no problems. My application went to, and was approved by their credit card department so this wasn't done at the discretion of the relationship manager. No income was from Malaysia. I've seen a number of posts where people have had various issues with HSBC, none of which I had which is why I suggested in an earlier post going through a Premier relationship manager.

Re: Opening a Bank Account in Kuala Lumpur
 

I'm retired and have a HSBC Malaysian credit card. I was told that my foreign pension does not qualify as income but I could have a credit card by placing some money in a fixed deposit account. The credit facility is then fixed at (if I recall) 80% of the FD.

HSBC seem really keen to promote the use of credit cards and are constantly coming up with schemes to get me to use the card. I get nearly as much in cash back as the interest on my FD.

Re: Opening a Bank Account in Kuala Lumpur
 

This is what I was informed at the time I opened my FD but never proceeded so actually its not a credit card at all in these circumstances it's seems almost a prepaid debit card.

Does the FD bear interest? If not you would have to "work the card" for all the benefits available and balance that they are at least equal to the interest your cash would receive in a paying FD to make it worthwhile.

Re: Opening a Bank Account in Kuala Lumpur
 

I am on an MM2H visa in Penang and CIMB was happy to give me (and my wife) a credit card. No requirement on monthly income, the MM2H approval letter does the trick. We had to put a certain amount in a FD and this amount becomes your upper spending limit (it works as a guarantee in case of non-payment). The amount can be between RM 2k and 10k. This FD is a 12 month fixed FD, automatically renewed and pays interest. The interest rate is the same as for any other 12 month FD at CIMB.
This is not a debit card but a credit card because the actual payment is deferred. How much deferred depends on the moment that an expenditure is booked, so in some cases it gets deferred one extra month.

Re: Opening a Bank Account in Kuala Lumpur
 

I think what you are referring to is a charge card. The difference is that with a credit card you are not obliged to pay off the balance at the end of the month whereas with a charge card it is fully paid off each month.

Re: Opening a Bank Account in Kuala Lumpur
 

Charge Card AKA A Debit Card. Debit cards automatically deduct the sum from one's account. There may be a small service fee, but no accruing interest, or the opportunity to pay a minimum amount and roll over the accruing payment to the next month. A Credit card is, essentially, a loan (hence different cards may have different levels you are eligible for)...but unless you pay them off entirely at the end of the month you'll actually pay more for the product than if you used a debit card. Banks love credit cards as they have a good chance of making a good deal of money, debit cards are not promoted nearly as much.

Re: Opening a Bank Account in Kuala Lumpur
 

No what I have is very much a credit card. But who would be foolish enough to place a large sum of money on deposit earning 3 percent per annum just so they could run up a credit card and pay nearly 3 percent per month.

Re: Opening a Bank Account in Kuala Lumpur
 

No, it is not a charge card. It is a credit card. I can elect to defer payment, but the interest rate is high.

Re: Opening a Bank Account in Kuala Lumpur
 

I see that but they are not really giving you credit if you have an FD to back any outstanding amount. What advantage is there over a debit card?

Re: Opening a Bank Account in Kuala Lumpur
 

Earn miles, cashback

Also, some hotels in places like Hong Kong only accepts credit card for security deposit,they don't accept debit cards.

Re: Opening a Bank Account in Kuala Lumpur
 

Car rental is another one where a credit card is required.

Re: Opening a Bank Account in Kuala Lumpur
 

For me Credit cards are more useful than Debit cards. Pay almost every thing with Credit cards then clear off when statements come, save me going to get cash at the banks and getting interest free deals to purchase certain big items at big stores which saves loads and at the same time the same amount can remain in acc for interest earned. Those linked with travel points/miles and access to airport lounges are just great eg I get a choice of 3 lounges in HK Chek Lap Kok and the food is way nicer than the one in Pg lounge.
After all most of us are retirees, any money saved is a bonus!

Re: Opening a Bank Account in Kuala Lumpur
 

Get some cashback on grocery shopping (and other shopping). Get to use certain airport lounges a few times per year. Sometimes shops have a promotion where you get additional discount if you pay with credit card. Don't have to use as much cash, and need to visit an ATM less often.

Re: Opening a Bank Account in Kuala Lumpur
 

I've never had any issue with using a debit card to rent vehicles (the same insurance coverage applies), buy on line, or use in restaurants and stores. Almost all Debit Cards nowadays are also MC or VISA backed and all you do is hit a "debit" button on the scanner. As well, you can simply type in more money above the amount to be paid at most retailers and they will give you cash back.

Now in some cases there are promotional items offered with particular bank Credit Cards but I wonder if the Debit Card from that bank would also receive the promo. Air Asia sometimes will reject cards or charge more from other than their affiliated bank (or Malaysian-based banks) but when I looked they treat the CC and the Debit card from those banks the same.

Oh and there are no annual fees or increases in the "introductory" interest rates with a debit card. How many times have I been offered some great deal for signing up with a credit card and then discovered that those wonderful benefits soon evaporated.

Then again I have a terrible credit rating despite having a six figure bank account and another six figure 401K. I have no outstanding loans, mortgages, debts ergo I'm a bad credit risk ;-)