Page 25 - MAYBANK vs EPF

month, three months, six months, one year or even more. The Fixed Deposit can be
also called as Term Deposit.

Under Maybank, Fixed Deposit account is a financial instrument provided by bank
which gives higher interest rates compared to a normal savings account. It protects

the investor from interest rates fluctuations which it locks the interest rates from
changing from time to time. Investor need to place a deposit at least RM1,000 to gain

more interest. Maybank shall not pay the interest for premature withdrawal because
he or she does not complete the full tenure period as agreed.

The advantages of Fixed Deposit account are:
• Low risk. Interest returns are guaranteed because Fixed Deposit gives
protection from interest rates fluctuations.

• Money insured. If the bank fails to pay interest, Perbadanan Insurans Deposit
Malaysia (PIDM) will gives investor a return for the money that have deposited

up to RM25,000.
• Higher interest rates. Fixed Deposit gives higher interest rates compared to
savings account.

The disadvantages of Fixed Deposit account are:

• No flexibility to access money. If investor withdraw or access the money

before maturity period, there is no interest shall be paid.
• Not challenging. It is because investor does not experience interest
fluctuations as invest in unit trust.

d) Negotiable Certificate of Deposit

A Negotiable Certificate of Deposit (NCD) may be a financial instrument issued by
financial institutions to realize sum of funds for a fixed period of time at prefixed rate
of interest. Negotiable Certificate of Deposit is issued by large, well-known commercial

banks of highest credit score and are traded actively in a well-organized secondary
market. It allows the commercial banks to draw in temporary funds that have previously

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