Best Fixed Deposit Malaysia 2026: Highest FD Rates (Updated Monthly)
Malaysia's big banks pay 1.75–2.05% p.a. on fixed deposits as their standard board rate. But every major bank is simultaneously running promotional FD campaigns at 3.25–3.85% p.a. — nearly double. The gap between knowing which promo to pick and letting your FD auto-renew at the board rate can be over RM 800 per year on a RM 50,000 deposit. This guide tells you exactly where to put your money in April 2026.
The best fixed deposit rates in Malaysia right now are CIMB eFD-i at 3.70% (12M, until 30 Apr), Hong Leong eFD Raya at 3.65% (12M, until 16 Apr), and Alliance Bank Privilege FD at 3.85% (6M, RM10K min, until Jun 2026). For amounts under RM5,000, MBSB TD-i at 3.75% (6M) and Maybank e-FD-i at 3.55% (12M) offer the best accessible promo rates. All PIDM-covered. Interest is tax-exempt for Malaysian individuals.
Promotional FD Rates Worth Chasing Right Now (April 2026)
Board rates are what you get if you walk into a branch and ask for an FD with no negotiation. Promo rates — available online or in-branch for qualifying deposits — are where the real returns are. Here's what's actually live this month:
| Bank | Tenure | Promo Rate | Min. Deposit | Valid Until | PIDM |
|---|---|---|---|---|---|
| Alliance Bank Privilege FD | 6M | 3.85% | RM 10,000 | Jun 2026 | ✅ |
| MBSB TIA-i Raya | 6M / 12M | 3.55% / 3.75% | RM 1,000 | 30 Apr 2026 | ✅ |
| CIMB TIA-i Campaign | 10M / 12M | 3.60% / 3.70% | RM 1,000 | 30 Apr 2026 | ✅ |
| Hong Leong eFD Raya | 3M / 6M / 12M | 3.40% / 3.55% / 3.65% | RM 1,000 | 16 Apr 2026 | ✅ |
| AmBank eFD/eTD-i | 3M / 6M / 12M | 3.40% / 3.55% / 3.65% | RM 1,000 | 31 May 2026 | ✅ |
| Maybank e-Islamic FD-i | 3M / 6M / 12M | 3.40% / 3.50% / 3.55% | RM 1,000 | 30 Apr 2026 | ✅ |
| Public Bank Special FD | 3M / 6M / 12M | 3.25% / 3.40% / 3.55% | RM 5,000 | 30 Jun 2026 | ✅ |
All rates are for new funds only (cannot use existing deposits at the same bank). Rates verified April 2026 from official bank websites — confirm current rates before placing. Hong Leong Raya promo expires 16 April 2026; act before this date for eligibility.
Standard Board FD Rates: What Auto-Renewal Pays You
This is the table that matters when your FD matures and you forget to renegotiate. Board rates are the floor — and for most major banks, that floor is not far above the OPR (currently 2.75%, cut from 3.00% in July 2025).
| Bank | 1M | 3M | 6M | 12M | Min. Deposit | Islamic? |
|---|---|---|---|---|---|---|
| Al-Rajhi Bank | 2.65% | 2.75% | 2.85% | 2.70% | RM 500 | Islamic only |
| Agrobank | 2.50% | 2.80% | 3.05% | 3.20% | RM 1,000 | Islamic only |
| Alliance Bank | 2.10% | 2.30% | 2.40% | 2.45% | RM 500 | Both |
| BSN | 2.15% | 2.30% | 2.35% | 2.45% | RM 500 | Both |
| CIMB | 1.75% | 1.95% | 2.05% | 2.05% | RM 1,000–5,000 | Both |
| Maybank | 1.80% | 1.95% | 2.05% | 2.05% | RM 1,000 | Both |
| Hong Leong Bank | 1.75% | 1.75% | 1.85% | 1.90% | RM 500 | Both |
| Public Bank | 1.75% | 1.75% | 1.85% | 1.90% | RM 1,000 | Both |
| RHB | 1.75%* | 1.95% | 2.05% | 2.05% | RM 500 | Both |
Board rates effective as of March–September 2025 (most banks updated rates after BNM OPR cut in July 2025). *RHB 1M requires RM5,000 minimum; 2M+ requires RM500. Agrobank: government-linked institution, Islamic FD only (FRIA-i). Al-Rajhi: Islamic banking, short-term board rates are market-leading. Verify current board rates directly with each bank before placing.
The "New Funds Only" Rule — Why Your Promo Rate Might Get Rejected
Every promotional FD in the table above requires "new funds." This is the rule that trips up the most depositors, and almost no comparison site explains it clearly.
What "new funds" means: The deposit must originate from a different bank. If you have RM 30,000 sitting in your CIMB savings account and you try to place it into CIMB's promo FD, the bank will process it at the board rate (1.75–2.05%), not the promo rate (3.40–3.70%). The money is already inside the institution — it doesn't count.
What to do: Transfer from a different bank. Use Interbank GIRO (IBG), DuitNow, or FPX to move funds from your primary bank to the target bank, then place the FD the same day. The transfer confirmation timestamp is your evidence if there's any dispute.
Exception: If you are placing money from a new source — salary, property sale proceeds, fixed deposit at a different bank — that counts as new funds regardless of which account you route it through.
Islamic vs Conventional FD — The Practical Difference
If you search for "best Islamic FD Malaysia," you'll get vague answers about halal compliance. Here's what actually differs for you as a depositor.
Contract structure: Conventional FD: you lend money to the bank, they pay interest. Islamic FD: the bank uses Murabahah (commodity purchase and resale), Tawarruq (structured commodity), or GIA-Mudharabah (profit-sharing) contracts. The underlying transaction is Shariah-compliant.
Rate language: "Interest rate" becomes "profit rate." In practice, the number you see in your account at maturity is calculated the same way.
The one real difference: Islamic FD profit rates are technically "indicative" — the bank shares profit rather than guaranteeing a fixed return. However, Malaysian Islamic banks consistently honor declared profit rates. In 20+ years of Malaysian Islamic banking, no bank has paid less than its declared indicative profit rate on a term deposit. Treat them as equivalent for planning purposes.
Who can open Islamic FD: Anyone. Muslim or non-Muslim. Malaysian or foreigner (with valid ID). There is no religious requirement to open an Islamic account at a Malaysian bank.
Verdict on Islamic vs conventional: Pick whichever has the better rate at the time you're placing. For halal-only depositors, stick to the -i variants (eFD-i, TIA-i, FD-i). The rates are typically identical or within 0.05% of the conventional equivalent at the same bank.
FD vs High-Yield Savings Account — Which Is Right for You?
Since digital banks now offer 3.00–4.00% p.a. on savings accounts with no lock-in, the comparison between FD and high-yield savings is no longer a foregone conclusion in favour of FDs.
| Factor | Promotional FD | Digital Bank Savings (GXBank / Boost) |
|---|---|---|
| Rate (April 2026) | 3.25–3.85% p.a. | 3.00–4.00% p.a. |
| Lock-in period | Yes — 3 to 12 months | None — withdraw anytime |
| Early withdrawal | Lose 50–100% of interest | No penalty |
| PIDM protection | ✅ Up to RM 250,000 | ✅ Up to RM 250,000 (licensed digital banks) |
| New funds required | Yes (for promo rates) | No |
| Best for | Surplus cash you won't need for 6–12M | Emergency fund, short-term float |
The call: If your money is for an emergency fund or you might need it within 3 months, GXBank Bonus Pocket or Boost Bank beats an FD on flexibility at comparable rates. If you're parking surplus savings that you genuinely won't need for 6–12 months, a promo FD at 3.40–3.85% p.a. has a slight rate edge over digital bank savings — and the certainty of a locked rate protects you if digital banks trim their rates later in the year.
FD Laddering: Earn More Without Locking Up Everything
If you have a larger lump sum — say RM 60,000 — placing it all in a single 12-month FD is the worst way to handle it. You lose all liquidity. A better approach: ladder it.
Example ladder with RM 60,000 (April 2026):
- RM 15,000 → CIMB 3M eFD-i at 3.40% → matures July 2026 → re-evaluate rates
- RM 15,000 → Hong Leong 6M eFD at 3.55% → matures October 2026
- RM 15,000 → CIMB 10M TIA-i at 3.60% → matures February 2027
- RM 15,000 → Alliance 12M (or best 12M promo available) → matures April 2027
Every 3 months, one tranche matures. You have RM 15,000 available. If rates improve, you lock in a new promo. If you need the cash, it's accessible. If nothing better appears, roll it into the next best rate. Over the year, your blended rate averages roughly 3.50% — and you never had more than RM 45,000 locked up at once.
Compare this to leaving all RM 60,000 in a savings account at 0.25–0.60%: the difference is over RM 1,750/year. Worth 20 minutes of setup.
For help deciding how to balance your savings strategy, see our guide on EPF withdrawals and Account 3 — many Malaysians are now supplementing their EPF savings with FD laddering for the liquid portion of their retirement buffer.
What Happens at FD Maturity — The Auto-Renewal Trap
Most banks auto-renew your FD at maturity — at the board rate, not the promotional rate. Your 3.65% Hong Leong Raya FD matures in April 2027 and automatically rolls into a new FD at 1.90% (the 12M board rate) unless you intervene. Banks send maturity notices — but if you miss the 7-day grace period, you're locked into another cycle at the lower rate.
Fix: Set a calendar reminder 2 weeks before maturity. Check that month's best promo rates. If you're staying at the same bank, contact them before the maturity date to apply the promo rate to the rollover. If a different bank has a better promo (with new funds from the matured FD), transfer and place there.
Verdict — Best Fixed Deposit in Malaysia Right Now
Best overall (RM 1,000 min, April 2026): CIMB TIA-i Campaign at 3.70% for 12 months is the highest accessible rate with a low minimum deposit. Expires 30 April 2026 — act this month.
Best rate available (RM 10,000 min): Alliance Bank Privilege FD at 3.85% for 6 months. Best single rate in the market if you can meet the RM 10,000 threshold and want a 6-month lock-in.
Best for small deposits (under RM 5,000): MBSB TD-i Raya at 3.55–3.75% accepts RM 1,000 and runs until 30 April 2026. Islamic only.
Best board rate (no promo needed): Agrobank FRIA-i at 3.20% for 12M is the highest standing board rate among all Malaysian banks — no promotional conditions, no "new funds" requirement. Islamic only, government-linked.
Best for flexibility: Don't use a FD. Use GXBank Bonus Pocket (3.18–4.00%) or Boost Bank (3.30%) — comparable rates, no lock-in, PIDM covered.
Frequently Asked Questions
Is fixed deposit interest taxable in Malaysia?
No. Interest earned from fixed deposits at Malaysian-licensed banks is fully exempt from personal income tax under Section 127(3)(b) of the Income Tax Act 1967. You do not need to declare FD interest in your LHDN e-Filing. This exemption applies to both conventional FD interest and Islamic FD profit rates, for individual Malaysian residents. Foreign nationals and corporate depositors are taxed differently — consult a tax advisor if you fall into those categories.
What is the penalty for early FD withdrawal?
The standard rule: withdraw your FD before maturity and you lose interest — but the penalty is graduated, not total. Withdraw within the first 3 months: you forfeit all accrued interest. Withdraw after 3 months but before maturity: most banks pay 50% of the agreed interest rate for the days actually held. Example: RM 50,000 at 3.50% p.a. for 12 months. If you withdraw after 6 months, you'd receive roughly RM 437.50 (50% × 3.50% × 6/12 × RM 50,000) instead of the full RM 1,750. Your principal is always returned in full — you only lose interest, never capital.
Which fixed deposit tenure gives the highest rate?
For board rates: longer tenures (12M+) typically pay the highest rates — CIMB 24M pays 2.10%, 36M pays 2.15%. For promotional rates: mid-term tenures (6M and 12M) usually have the best deals, since banks want to lock in fresh deposits for a meaningful period. Right now (April 2026), CIMB's 12M promo at 3.60%, Hong Leong's 12M at 3.65%, and Alliance Bank's 6M Privilege at 3.85% offer the best rate-to-tenure combinations. Avoid chasing the 3-month promo rates — they auto-renew to board rates (1.75–1.95%) which are roughly half the promo rate.
What is the difference between Islamic FD and conventional FD?
Structurally: Islamic FDs use Shariah-compliant contracts — most commonly Murabahah (cost-plus sale), Tawarruq (commodity-backed), or General Investment Account (GIA/Mudharabah profit-sharing). Practically: the difference is almost negligible for depositors. The 'profit rate' replaces 'interest rate,' but the number you receive in your account each month or at maturity is the same calculation. The key distinction: Islamic FD profit rates are 'indicative' rather than 'guaranteed' — but Malaysian banks consistently honor their declared rates. Either Muslim or non-Muslim depositors can open Islamic FDs. If halal compliance matters, choose a bank's Islamic variant (labeled -i: eFD-i, FD-i, TIA-i). The rates and PIDM protection are identical.
Is my fixed deposit protected by PIDM?
Yes, if your bank holds a BNM banking licence. All commercial banks, Islamic banks, and development financial institutions that are PIDM member institutions cover fixed deposits up to RM250,000 per depositor per institution. This means Maybank FD, CIMB FD, Hong Leong FD, Public Bank FD — all covered. Agrobank and Bank Rakyat are government-linked with separate guarantee arrangements that are effectively equivalent. Note: StashAway Simple and similar money market funds are NOT FDs and are NOT PIDM-covered. You can verify any bank's PIDM membership at pidm.gov.my.
What does 'new funds only' mean on FD promotions?
It means the promotional rate applies only to money that is genuinely new to the bank — not transferred from your existing savings account or existing FD at the same institution. Example: you have RM 30,000 in a Maybank savings account and want to place it in Maybank's promo FD. That does not qualify as 'new funds.' To get the promo rate, you must transfer funds from a different bank (e.g., CIMB → Maybank). This catches many depositors off guard. Banks verify this during placement — if the source is the same institution, your placement will be processed at the board rate, not the promotional rate.
Should I use a fixed deposit or a digital bank savings account for my emergency fund?
For an emergency fund — money you might need within days — a digital bank savings account beats an FD on flexibility. GXBank Bonus Pocket (3.18–4.00% p.a.) and Boost Bank (3.30% p.a.) offer rates comparable to FD promos with no lock-in. Early FD withdrawal forfeits 50–100% of accrued interest. The exception: if you have 3–6 months of expenses beyond your emergency buffer, consider laddering the surplus into short-term FDs (3M). You get the higher rate and maintain liquidity on a rolling basis.
Last updated: April 2026. FD rates and promotional campaigns verified from official bank websites and aggregator sources. Promotional rates are time-limited — confirm current offers before placing your deposit. Board rates accurate as of March 2026 (post-OPR cut adjustment).