Easy and Almost Risk-Free Financial Tips

Saving Account
The Bank Saving Interest rate now is about 0.3%, so if you have RM 10K in your bank, you get around RM 30 per year. Too little, but hassle free.

Fixed Deposit
The next best thing is to move this money into Fixed Deposit, which offer around 2% Interest Rate (RM 200 for your RM 10K savings per year). Certain online banking like Maybank2u allows you to put money in FD via online transaction (immediate deposit and withdrawal), so it’s extremely convenient.


Government Bond
Lets say you want more, you can try some Government bond offered by PNB like Sukuk or Merdeka (for Senior Citizen) Bond which offered 5% Returns for 3 years (so you get RM 500 for RM 10K of Investment). You need to be aware the launch date for these bonds and queue up to purchase at PNB or some other local Banks like Maybank. Bear in mind Maybank is really very slow with the ability to process maximum of 10 people per hour per counter (so either queue up early, or goto other bank or branches which are faster). Dividend is paid quarterly (every 3 months), so you are slightly limited on when you can withdraw the money without sacrificing the dividend.

Government Fund / Unit Trust
Let’s say you want more and can take a small risk, you can apply for ASM or ASW 2020 by PNB (is like a Public Unit Trust). Historically the dividend is between 5-8% (RM 800 for RM 10K of Investment assuming dividend yield of 8%), but there is no guaranteed. ASM and ASW looks like a saving account as they give you an Investment Passbook, so you can top up more units at anytime (assuming it is available). The problem is you don’t know when additional unit is available unless you visit the Banks and Post Office everyday or every week. ASW 2020 is the hardest to apply during launch, unless you are a Bumiputera.

You need to queue up early during launch date to grab your share, as it is known to finish up within hours or a few days. Buying these fund require some strategy in place i) queue up damn early like 8am ii) go to some unpopular Post Office or Bank iii) befriend with some officers to place your order earlier and faster. Else, you can check with the banks frequently to see if any units are available (or pay someone to notify you when units are available?).

ASM or ASW 2020 is better than those Unit Trust in the markets due to 2 reasons: i) There is not processing or transaction fee, or yearly administration fee. ii) You will never loose your capital (buy and sell price always fixed at RM 1), is a matter of how much dividend you get.

What Else?
What if you want more? Share Market and Property Investment then, which is out of my scope as it is neither easy nor risk-free.

Conclusion

• Saving Account: 0.3%
• Fixed Deposit: 2%, withdrawal every 1 month without sacrificing Interest
• Government Bond (Sukuk, Merdeka, etc): 5% (up to 3 years), dividend paid every 3 months (The profit payments will be apportioned based on the number of days held)
• ASN, ASW 2020: 5-8% (No Guaranteed), withdrawal anytime without sacrificing Dividend