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⚡ Quick Answer
As of May 2026, the best fixed deposit rates in Malaysia sit between 3.50%–4.20% p.a. for standard 12-month tenures. Digital banks and smaller banks tend to offer higher promotional rates than the Big 4. If capital protection and guaranteed returns are your priority, FDs from licensed banks are PIDM-insured up to RM 250,000.
What Is a Fixed Deposit?
A fixed deposit (FD) — also called a term deposit — is a savings instrument where you lock a sum of money with a bank for a fixed tenure (typically 1–60 months) in exchange for a guaranteed interest rate. Unlike a regular savings account, the rate is locked in when you open the FD and will not change regardless of what happens to interest rates during your tenure.
Key things to know:
- PIDM-insured: All FDs with licensed Malaysian banks are protected by PIDM up to RM 250,000 per depositor per bank
- Early withdrawal: Most banks allow you to break an FD early, but you’ll usually forfeit part or all of the interest earned
- Minimum placement: Typically RM 500–RM 5,000 depending on the bank and product
- Rollover: FDs that are not withdrawn automatically roll over at the prevailing rate on maturity
Best Fixed Deposit Rates Malaysia — May 2026
The following rates are indicative as of May 2026. Promotional rates change frequently — always confirm on the bank’s official website before placing your money.
Traditional Banks
| Bank | 3 Months | 6 Months | 12 Months | Min. Placement |
|---|---|---|---|---|
| Maybank | 3.00% | 3.10% | 3.15% | RM 500 |
| CIMB | 3.00% | 3.10% | 3.20% | RM 1,000 |
| Public Bank | 2.90% | 3.05% | 3.15% | RM 1,000 |
| RHB | 3.05% | 3.15% | 3.25% | RM 1,000 |
| Hong Leong Bank | 3.05% | 3.20% | 3.30% | RM 1,000 |
| Alliance Bank | 3.10% | 3.25% | 3.35% | RM 500 |
| AmBank | 3.10% | 3.25% | 3.35% | RM 1,000 |
| UOB | 3.05% | 3.15% | 3.25% | RM 5,000 |
| OCBC | 3.00% | 3.10% | 3.20% | RM 5,000 |
Islamic Fixed Deposit (Commodity Murabahah)
Islamic FD equivalents (called Term Investment Accounts or Commodity Murabahah deposits) typically offer comparable returns to conventional FDs. They are structured differently (profit rate rather than interest rate) but functionally behave the same for depositors. Maybank Islamic, CIMB Islamic, and Bank Islam are the main players here, with rates broadly in line with conventional products.
Digital Banks & High-Yield Alternatives
| Platform | Rate | Tenure | Notes |
|---|---|---|---|
| GXBank Flexi FD | Up to 3.88% | 1–12 months | Flexible partial withdrawal |
| RytBank FD | Up to 4.20% | 1–12 months | SC-licensed digital bank |
| AEON Bank | Up to 4.00% | 3–12 months | Promotional rate for new funds |
| Boost Bank | Up to 3.80% | 1–12 months | App-based, no physical branches |
| Versa Cash | ~3.80%–4.00% | Flexible (money market) | Not an FD — money market fund, but highly liquid |
Digital banks like RytBank and GXBank consistently offer higher rates than the Big 4, though their promotional rates fluctuate. RytBank’s referral programme also gives you a bonus on sign-up — sign up with referral code W4DFE to unlock the reward.
FD vs Savings Account vs Money Market Fund
Before locking money in an FD, it’s worth comparing it to alternatives:
| Product | Typical Rate | Liquidity | Capital Guarantee |
|---|---|---|---|
| Fixed Deposit | 3.00%–4.20% | Low (locked in) | ✅ Yes (PIDM) |
| High-Yield Savings (e.g. RytBank, GXBank) | 2.50%–3.50% | High (instant) | ✅ Yes (PIDM) |
| Money Market Fund (e.g. Versa, TNG GO+) | 3.50%–4.20% | Very high (T+1) | ❌ Not PIDM (but very low risk) |
| SSPN-i | ~3.50%–4.50% | Low (restricted) | ✅ Yes (Government) |
| ASB | ~5.00%+ | Low (queued) | ✅ Yes (Government) |
The key trade-off is liquidity. FDs give you a guaranteed rate but tie up your money. Money market funds like Versa offer similar or even better rates with near-instant withdrawal, but they’re not PIDM-insured (though the risk of a money market fund breaking NAV is extremely low).
How to Choose the Right FD Tenure
Tenure selection depends on your goals:
- Emergency fund: Don’t put emergency money in an FD — you may need it at any time. Use a high-yield savings account or money market fund instead.
- Short-term goal (3–6 months): 3–6 month FDs work well. Rates are slightly lower than 12-month, but you get your money back faster.
- Medium-term goal (1–2 years): 12-month FDs offer the best conventional bank rates and can be rolled over if rates stay attractive.
- Long-term savings: For truly long-term money (3+ years), consider investing in unit trusts, ETFs, or robo-advisors rather than repeatedly rolling over FDs — the inflation-adjusted returns will likely be higher.
Tips to Maximise Your FD Returns
1. Compare promotional rates before placing
Banks run promotional FD rates for new funds, senior citizens, or via specific channels (app-only, online banking). The promotional rate can be 0.30%–0.50% higher than the base board rate. Always check if a promo is running before placing at standard rates.
2. Ladder your FDs
Instead of putting RM 60,000 into one 12-month FD, split it into three RM 20,000 FDs with 3-month, 6-month, and 12-month tenures. This way, you have regular maturity dates and can reinvest at the best available rate — without having all your money locked up for a full year.
3. Check for senior citizen rates
Most major banks offer an extra 0.25%–0.50% p.a. for depositors aged 55 and above. If you or your parents are placing a large sum, this is free extra return for zero additional risk.
4. Consider digital bank FDs for higher base rates
If maximising return is the goal and you’re comfortable with a newer app-based bank, RytBank and GXBank consistently offer 50–100 basis points more than the Big 4. Both are BNM-licensed and PIDM-insured — the main trade-off is no physical branches.
Our Recommendation
For most Malaysians, the sweet spot in 2026 is a 12-month FD with a digital bank like RytBank or GXBank for the higher rate, combined with a money market fund (Versa or TNG GO+) for the liquid portion of savings that might be needed before maturity.
If you’re conservative and want everything PIDM-backed, go with Hong Leong Bank or Alliance Bank among the traditional players — they consistently offer slightly better rates than Maybank, CIMB, and Public Bank. If maximum guaranteed return is your goal and you’re comfortable with the newer digital bank UX, RytBank is hard to beat on rate.
Frequently Asked Questions
Are fixed deposits in Malaysia taxable?
FD interest income from Malaysian banks is exempt from personal income tax for individual Malaysian tax residents. This is a significant advantage over investments where returns are taxable as income.
What is the maximum PIDM protection for FDs?
PIDM insures deposits up to RM 250,000 per depositor per member bank. If you have more than RM 250,000 to place, split it across multiple licensed banks to keep each account within the protected limit.
Can I break a fixed deposit before maturity?
Yes, but you will typically forfeit all or part of the interest. Some digital banks (like GXBank’s Flexi FD) allow partial withdrawals without forfeiting interest on the remaining balance — worth considering if you’re uncertain about your liquidity needs.
Is it better to put money in an FD or a money market fund in 2026?
For money you won’t need for 12 months, a 12-month FD at a digital bank offers a clear, locked-in rate. For money you might need sooner, money market funds like Versa offer comparable rates with same-day or next-day liquidity — that flexibility is worth a lot. Many Malaysians use both: FDs for locked savings, money market for the liquid buffer.
Which bank has the best FD rate in Malaysia right now?
As of May 2026, RytBank offers some of the highest base FD rates among licensed banks, up to 4.20% for 12-month placements. Among traditional banks, Hong Leong Bank and Alliance Bank tend to be slightly more competitive than the Big 4 (Maybank, CIMB, Public Bank, RHB).
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