Malaysia Best Fixed Deposit Rates [May 2025]

Still considering fixed deposits to grow your savings? Let’s take a look at this guide for the best fixed deposit rates in Malaysia in May 2025.

Why Fixed Deposits Still Matter in 2025

With so many options for those who want to grow their savings, fixed deposit (FD) has always been a top, safe choice amongst many.

This coupled with its recent revival, thanks to steady OPR rate hikes and competitive rates from other newer banks, fixed deposit rates are indeed becoming a powerful tool yet again.

According to Bank Negara Malaysia, the OPR rate since July 2023 of 3% has created a positive environment for fixed deposits. Although these are not the highest fixed deposit rates in Malaysia that we have seen, it is definitely competitive enough in 2025.

In addition to this, newer digital banks offering competitive savings rates are reshaping how we think about savings.Most of them are able to offer high sign on rates through hassle-free mediums like mobile apps for new customers.

Amidst all this, fixed deposits are still a viable diversification method in increasing your savings. Let’s take a closer look at why they still dominate the market.

Pros & Cons at a Glance

Latest Best Fixed Deposit Rates in Malaysia (May 2025)

1‑Month & 3‑Month Tenures

If you prefer flexibility and only have one quarter before you need to use the money, consider looking for short term tenures like 1 month or 3 months. Banks like Maybank will give up to 3.6% for 3 months.

6‑Month Tenures

With 6 months tenure, it seems like the perfect balance of yielding good fixed deposit rates and not letting your money get locked up for too long. The Term Deposit-i bundle with BSN SSP is a great option which gives you a 5.5% yield! It is also perfect for those who already have savings with BSN’s SSP account.

12‑Month & 24‑Month Tenures

For maximum returns, of course consider looking at 12 or 24 months tenures. Bear in mind, you must be comfortable not touching this money for up to 2 years. Therefore, consider putting aside money for emergencies or any important life events before committing to a long tenure like this. Consider Ambank which provides up to 3.8% of fixed deposit rates.

Limited‑Time Promotional Campaigns

Always look for promotional campaigns that can truly boost your existing fixed deposit rates in Malaysia. For example, RHB’s Premier term deposit will give you a 3.9% return for a RM50,000 deposit for a short tenure of 3 months. Talk about quick cash!

Fixed Deposit Rate Trends (2024 → 2025)

With the upward pattern in OPR since mid 2023, fixed deposit rates have also been steadily growing. On average, most banks offer rates above 3.3%.

That said, digital banks have also upped their game by offering better rates, thanks to their low overhead costs and promotional strategies laid to attract new customers.

OPR Hikes vs. Bank Spreads

When OPR rates are adjusted and raised, banks are affected through earnings they make from loans. That indirectly affects fixed deposit rates they provide to customers. However, not all banks adjust these rates similarly.

The reasons are pretty straightforward – bigger banks don’t need to increase their fixed deposit rates since they have millions of customers. They also tend to make more through the loans they provide.

So, they are not very fast in passing on the full benefit to deposits. Hence, the larger spread between earnings and what they pay depositors.

How to Choose the Right FD for You

Many tend to think that the best fixed deposit is the one with the highest fixed deposit rate in Malaysia. However, remember each fixed deposit is different from one another, so it’s best to ask yourself what are your financial goals and if you might have any personal needs.

Let’s look at some factors that you need to consider to choose the right fixed deposit for yourself:

Tenure vs. Cash‑Flow Needs

Consider fixed deposit tenures as a lock-in period. Shorter tenures offer easier access especially if you need to use the cash.

But, if you have no need for the money, then consider a longer tenure which will also yield a higher fixed deposit rate.

Early Withdrawal & Partial Uplift Rules

Different banks have different rules. Some banks like Public Bank and RHB will impose a penalty for withdrawing earlier than the tenure by forfeiting all the interest on early withdrawals.

On the other hand, there are some banks which will allow partial withdrawal with pro-rated interest paid out. Again, assess your needs to see which duration will suit you best, keeping in mind about these rules.

PIDM Coverage & Bank Credit Ratings

The good thing about fixed deposits is that they are pretty safe thanks to the PIDM coverage provided to banks.

Fixed deposits under RM250,000 are insured by the PIDM. For deposit amounts which are higher, check with the bank directly.

Online‑Only vs. Branch‑Based Accounts

Branch based accounts will provide more one-to-one support. So if you feel more secure with traditional banking, especially if you’re making a large deposit, then a branch based account is the way to go.

On the other hand, if you value convenience, online only fixed deposits are the best choice to go for. With instant approvals and 24/7 access, it is fast and secure to make your fixed deposits. But, expect no face to face help and to be contacting their customer service hotlines.

Smart Ways to Maximise Your FD Returns

Now that you have decided what your needs are, let’s look at how much we can maximize the fixed deposit rates in your favour:

Laddering Strategy

Use the laddering strategy which is to break up your investments into different durations to get maximum yield.

By breaking your investment up, you will be able to enjoy yields every quarter and take advantage of the long-term high yield rates offered by banks.

Rate Watch & Auto‑Rollover Tips

Always check current rates before agreeing to automatically renew your fixed deposit schemes.

This is to ensure that banks have not reduced their rates during the rollover. At this time, it is also wise to be on the lookout for any other offers from different banks before opting in with your current one.

Combining FD with High‑Yield Cash Management Accounts

With many other digital high yielding cash accounts available today, you can always consider using them without a lock in period.

Platforms like Versa Cash and Stashaway can offer attractive rates too and are a good place to park your cash while waiting for even better fixed deposit rates or promo to be available.

Alternatives to Traditional Fixed Deposits

Fixed deposits aren’t the only traditional means to grow your savings. Let’s take a look at some other methods that you can use:

• Money‑Market & Short‑Duration Bond Fund : Consider unit trust funds like Kenanga Money as a tool. Although your capital is not guaranteed like fixed deposits, they provide a slightly higher yield than fixed deposits.
• Islamic Term Deposit‑i : Shariah compliant options are also plenty; providing competitive returns based on profit-sharing.
• Digital Bank “Save” Accounts: Many newer platforms like AEON and GX Bank offer attractive daily interests for savings accounts which can be a good alternative to fixed deposits. New players offering near‑FD rates with no lock‑in.

Tax Implications & Reporting

Always remember that any interest earned is taxable, including fixed deposits. When you do your yearly taxation, be sure to declare your earnings especially if your income exceeds the threshold of RM34,000.

Frequently Asked Questions