Fixed Deposit

Fixed Deposit

One of the most reliable asset management options is “utilizing Malaysian bank deposits”.

About Fixed Deposits in Malaysia

Currently, Malaysian bank interest rates offer approximately 2.10-2.50% for 1-year fixed deposits. (Please note that interest rates constantly fluctuate and vary by bank.) Fortunately, there is currently no tax on interest income, so interest earnings are 100% the depositor’s income. Additionally, Malaysia has a deposit protection scheme guaranteeing up to RM250,000 (approximately USD 56,000 at RM1=USD0.225) per bank. Bank of Negara Malaysia’s supervision is strict, and there has never been a bank failure or bank run in Malaysia, making Malaysian bank deposits quite safe. However, opening a bank account in Malaysia basically requires a local visa such as MM2H or employment visa.

About Bank Support Services

1

New Account Opening

(Note) Those who do not hold a valid visa in Malaysia or have not purchased property locally cannot open a bank account in Malaysia.

2

Bank Accompaniment Support

3

Internet Banking Support

Important Notes on Bank Account Maintenance

About Account Freezing

Typically, Malaysian banks will freeze (Inactive) accounts if there are no withdrawals for 1 year.

For foreign banks, if an account is frozen, the bank will send a letter stating “Your account has been frozen, please visit the bank counter to reactivate it.” However, for local banks, if the registered address is overseas, letters are rarely sent, so please be careful.

Unfreezing is usually done on the spot by visiting the counter with your passport.

If the “Inactive” status continues for more than 3 years, the status may be upgraded to “Unclaimed”. When this status is reached, unfreezing may require visiting the branch where the account was opened, but unfreezing at the bank is still possible.

Furthermore, if the frozen state continues for more than 7 years, there is a high possibility that the funds will be transferred from the bank to the national Unclaimed department. If funds are transferred to the Unclaimed department, procedures become complicated, so please be careful.

If your valid visa in Malaysia has expired and you receive a letter from the bank saying “We request you to update your personal information, please visit our counter”, and you ignore it and don’t visit the counter, some banks have the right to transfer funds to the Unclaimed department even before the 7-year period, resulting in funds being transferred to the Unclaimed department and regular accounts being forcibly closed.

How to Withdraw from Regular Accounts Without Being in Malaysia

We have summarized several methods below for your reference.

Methods for Account Maintenance (Reference Information)

1. Withdraw at post offices or Seven Bank using your ATM card (Check the marks on the back of your ATM card for available locations)

2. Malaysian bank ATM cards have debit card functionality (VISA or Master), so use the card for shopping

*To use your ATM card overseas, it must be set to “overseas use enabled”. The method to enable overseas use varies by bank. Please confirm when applying for your ATM card.

3. Use internet banking to transfer to other accounts, create fixed deposits, or move to your other foreign currency accounts