Re: Opening a Bank Account in Kuala Lumpur
 

Re: Opening a Bank Account in Kuala Lumpur
 

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

Re: Opening a Bank Account in Kuala Lumpur
 

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.

Re: Opening a Bank Account in Kuala Lumpur
 

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.

Re: Opening a Bank Account in Kuala Lumpur
 

Re: Opening a Bank Account in Kuala Lumpur
 

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 .

Re: Opening a Bank Account in Kuala Lumpur
 

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.

Re: Opening a Bank Account in Kuala Lumpur
 

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.

Re: Opening a Bank Account in Kuala Lumpur
 

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.

Re: Opening a Bank Account in Kuala Lumpur
 

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..

Re: Opening a Bank Account in Kuala Lumpur
 

@stepen does this mean that you opened two FDs? One linked to your MM2H and the other one for yourself? Which of the two is linked to the MM2H?

Re: Opening a Bank Account in Kuala Lumpur
 

Both are linked to the mm2h

Re: Opening a Bank Account in Kuala Lumpur
 

I see. You needed to place an FD of MR300k in total?

Re: Opening a Bank Account in Kuala Lumpur
 

Yes that's the requirements for under 50years.

Re: Opening a Bank Account in Kuala Lumpur
 

hi all.
I've just received the Conditional MM2H Approval letter, so I need to fly to Malaysia to complete the procedure, one of which is to open a FD bank account.

Could anyone please tell me what further documents I need to bring to the bank to get a FD, apart from passport with entry stamp and conditional approval letter?
HSBC told me that I need to bring a proof of residence (e.g. telephone bill) and a document showing my tax number (e.g. tax statement). Do other banks like CIMB need similar documents or other further documents?

Re: Opening a Bank Account in Kuala Lumpur
 

Congratulations on receiving the MM2H approval.
How can you show "proof of residence" and a "tax number" to HSBC if you're not even living in Malaysia yet? I placed my MM2H FD with CIMB. CIMB did want to have an address to send correspondence to. I used temporarily the address of the agent who was handling my MM2H application. Once I moved to Malaysia I changed this of course. And MM2H holders do not get a tax number in Malaysia. Unless you really need it and take the necessary steps yourself.

Re: Opening a Bank Account in Kuala Lumpur
 

Congratulations Pat, are you using an agent as they normally 'hand hold' you through all this?

As Sushi said normally the agent will use their address for the account opening.

If you are not using an agent you also should take the advice of splitting the FD into two separate deposits as (depending on your age) you can withdraw an amount for approved purchase items and splitting the FD makes this procedure easier. This also gives you the opportunity of placing the lesser (withdrawable) FD at 12 months (for example) fixed deposit (short term access) and the larger amount (that cannot be withdrawn until you give up the visa) at a longer period of time but at a higher fixed rate.

Also I know this might sound stupid but it is only because I did it, I also opened a USD account and brought along dollars cash to deposit in it, not allowed. I was sent over the road to a money broker to exchange it into RM and I was only allowed to deposit a set amount into the new account per day, so best to check.

Re: Opening a Bank Account in Kuala Lumpur
 

You are not allowed pay in or withdraw forex cash from a forex account in Malaysia, any account movement has to be done by electronic transfer.
In Singapore it is however possible, for example CIMB SG charges a fee of 1% when depositing or withdrawing forex cash.
(If you are a CIMB preferred customer, the charge is 0.5% for forex cash deposits)

Re: Opening a Bank Account in Kuala Lumpur
 

[QUOTE=Macsta;12577726]Congratulations Pat, are you using an agent as they normally 'hand hold' you through all this?

No, I'm not using agent. I called CIMB call centre and they could not answer exactly what further documents would be needed. They advised me to call directly to a branch outside KL and Selangor. I told them that I would be going to KL to complete the last steps of MM2H and so would like to call a branch in KL instead. But they said that the calls to KL branches would be automatically redirected to the call centre.

Re: Opening a Bank Account in Kuala Lumpur
 

[QUOTE=Pat in europe;12577826]In this situation Pat I will leave it to those who have completed the MM2H procedure from approval without the use of an agent to give you best advice.

Hope it all goes smoothly for you.

Re: Opening a Bank Account in Kuala Lumpur
 

Thanks for the reply.
HSBC wanted to get the address proof and tax number at my current home base, not Malaysia. I guess this is requested to curtail tax evasion, a measure introduced among OECD countries after the Panama Papers scandal.
I may consider HSBC simply for the reason of money transfer and management as I am an HSBC customer outside Malaysia. But my impression of HSBC Malaysia is that they do not really care about getting me as their customer: not very enthusiastic about my enquiries and not flexible enough when I asked if I could start the account opening process before coming to Malaysia.

Re: Opening a Bank Account in Kuala Lumpur
 

Don´t waste your money with HSBC it just will make you sad every year to see your tiny FD income while the Ringgit drops.

I don´t remember CIMB needed anything else than passport and approval letter. Maybe a bank statement from my overseas bank, definitely no utility bills or something with my overseas tax number, both I would have not been able to provide.

Re: Opening a Bank Account in Kuala Lumpur
 

Yes I'm certain that they want your home country tax number. It's bit ridiculous since you are unlikely to actually generate so much income from the account that it would be taxable. But some countries (like the US) consider foreign income as part of total income, which is how they tax (worldwide assets). You thus need to notify the home country tax authority. In the US the tax number s the Social Security Number. If you pay taxes on line abroad you may find you tax number on saved tax records.

FD's are subject to the rise and fall of the Ringgit at ANY Malaysian bank. If you pay into the FD will the home currency is strong when it weakens you "make money" (Ringgit goes up and buys more £, $ when you cash out). The converse is also true.

Re: Opening a Bank Account in Kuala Lumpur
 

If you're American then it might be they need this information to fulfil their reporting obligations to the USA authorities (e.g. FATCA). I don't think they need this to fulfil obligations towards the Malaysian government.
HSBC got a lot of bad press last year on this forum (and elsewhere). This got worse when HSBC Malaysia suddenly started to purge customers: they didn't want their business any longer and customers were told to move their accounts over to other banks, usually within two weeks. Unless you already have a strong relationship with them the advice seems to be to go to a local Malaysian bank such as CIMB.

Re: Opening a Bank Account in Kuala Lumpur
 

Wow, didn't know that, any reason given for the purge?

Was it for both local and expats?

Re: Opening a Bank Account in Kuala Lumpur
 

Can hsbc ask you to leave if you have the mm2h FD with them ? Can't move that I think

Re: Opening a Bank Account in Kuala Lumpur
 

Maybe, I do not know but as this it is an expat forum it is reasonable to assume the complaints mentioned and customer purge affected expats in some way or form otherwise it is unlikely it would be mentioned as the original post is related to MY bank opening/recommendation for an expat.

Re: Opening a Bank Account in Kuala Lumpur
 

That is what angered those customers even more: HSBC refused to give a real reason why they were telling them to close their accounts and go find another bank. But all this is from hearsay as I don't bank with them.

Re: Opening a Bank Account in Kuala Lumpur
 

HSBC give very low interest rate compare to others bank. The good thing is you can easily link up with your current account if any.
Otherwise if you don't mind to have another account I would suggest you to open local bank account like CIMB.

Re: Opening a Bank Account in Kuala Lumpur
 

Is this actual fact? I know HSBC give a FD of 4.15% pa over 60 months and the only other (verifiable) higher rate is CIMB with a 6 month promotion of 4.4% reverting back to whatever standard rate is.

It seems the main banking players are HSBC, CIMB, Maybank and CitiBank but do any of them really stand out as exceptional in offers, I mean rates, not convenience factors such as HSBC Global Transfer etc.

Re: Opening a Bank Account in Kuala Lumpur
 

Very little banks offer 5 year FD, Bank Rakyat gives 4.70% (possible to negotiate up to 4.80) with interest paid monthly for this. Bank Islam is 4.65% for 2 years tenure with quarterly interest, but they don´t deal with MM2H clients.

CIMB, OCBC and others even not offer 2 year, 12 month is maximum. Hong Leong Bank stopped even 12 months at the moment, only short term possible.

You will find many HSBC customers who never in their life saw a "4" in front of their interest rates. The water under Penang Bridge is full of their salty tears :D A good agent, @kiat137 probably is one, would have protected from this.

But sure, some customers will be treated different by them, I do not doubt that 4.15% for 60 month is possible. No difficult guess, only veeeeeeeeeeeeeeeeeeery few.

Re: Opening a Bank Account in Kuala Lumpur
 

eCdD that surprises me (not the salty tears :rofl:) because I am no special customer (if only) and I can access 4.15% % FD 5 year deal through HSBC Premier online account without having to speak to a "relationship manager".

I haven't taken it as I was hoping rates would be on the way up :thumb:

I assumed all HSBC expat customers were on the same rates but it seems I am naive :o

Re: Opening a Bank Account in Kuala Lumpur
 

I checked, you are absolutely right, this is indeed a rate that every HSBC customer can get:
HSBC Time Deposit Interest Rate
1* month to 2 months 2.90% p.a.
3 months to 5 months 3.00% p.a.
6 months 3.10% p.a.
7 months to 11 months 3.15% p.a.
12 months to 17 months 3.15% p.a.
18 months to 23 months 3.50% p.a.
24 months to 35 months 3.65% p.a.
36 months to 47 months 3.75% p.a.
48 months to 59 months 4.05% p.a.
60 months 4.15% p.a.

But will they allow you to use this as MM2H FD? You see, the problem is the very sad 3.15 for 12 month.

Re: Opening a Bank Account in Kuala Lumpur
 

yes

Re: Opening a Bank Account in Kuala Lumpur
 

Please check with the bank. Usually MM2H FD they give lower rate or else same bank different branch they give different also.
Normally only first year bank give high interest. After a year will drop to base rate.

Re: Opening a Bank Account in Kuala Lumpur
 

Hi Macsta, when you said you could access 4.15% FD without having to speak to a relationship manager, did you mean that you just did the selection online, or you showed the relationship manager what you saw on the website and did not need to negotiate?
By the way, I have a general question: can one withdraw the interests earned on FD account whenever he/she wants? if not, all interests earned together with the original amount of FD will be stuck in the bank until the day one quits MM2H program.

Re: Opening a Bank Account in Kuala Lumpur
 

Hi Pat, once your online account is set up you can open a FD as you wish (and is available) so for instance when the bank open up an initial FD it maybe a month in duration (2.9%) but you have it on auto renew so the FD closes and opens monthly basically until you cancel it or the product is withdrawn.

So I can open a FD online for 60 months and the rate will default to 4.15% for this duration without speaking to a relationship manager.

I have seen it mentioned on previous posts that if you visit the relationship manager then you can negotiate an improved rate, I do not know if this is true, I have had email confirmation from my RM that the rates offered are all the same in branch or online. If anyone has a difference experience please comment.

You can choose to take a FD with end of year or half year profits and the interest earned can either remain in the FD or paid into your current account.

Just be aware these are Islamic FDs but this is just a wording method to comply with Sharia lending practices.

Ref your general question my MM2H FD paid out the interest after 12 months into my current account so it is not locked in.

Re: Opening a Bank Account in Kuala Lumpur
 

And for 60 month FD interest can be paid monthly.

Re: Opening a Bank Account in Kuala Lumpur
 

At CIMB is the FD fixed for 12 months and then automatically renewed. At the time of placing the FD you can indicate that you want to receive the annual interest in your regular bank account. This interest comes available at the end of the 12 month period.

Re: Opening a Bank Account in Kuala Lumpur
 

Thanks for all your replies about FD interest rates.
A couple of other FD questions:
1) I read before that some of you recommended opening 2 FD accounts for MM2H, 1 of which for withdrawal of money to pay for real property purchase, medical expenses or other allowed purposes. Is that absolutely necessary? Can the bank simply deduct the allowed amount from 1 single FD account?
2) in case of withdrawal requests for allowed purposes, will the bank reject such requests simply because of the FD duration? e.g. if I have chosen 60 months FD period and want to withdraw some money for real estate purchase in year 2, can the bank say I will have to wait for the FD duration to come to an end (i.e. end of 60 months) and only after that they can release the allowed amount?