for mostly public known FD is none risk at all. is 0% risk. So, can i know if FD is 0% risk.? it is an investment or contract? In what condition customers will lose the interest for FD or even the Money? Can anyone share to let public know more about this knowledge.
same goes overhere… anyone can help?
they once say treasuries/sovereign bond is the safest as it is backed by the government, but in last argentina financial crisis, the argentine government defaulted its treasuries. same too for FD, risk is near 0%. it’s backed by the bank, and since the bank would be an authorized financial institution its also indirectly backed by the govt, just like the US guarantee those customer deposits of bankrupted banks in 2008-2009 financial crisis. as long as something catastrophic doesnt happen like a collapse in government finance, its secure.
haha fd where got risk~
just make sure u no need to take out the money before the time period like 13 months~ then it will be no prob~
FD normally have a tenure of 1-12 monthly interest rate basis. If we withdraw on the maturity date, we will get the interest plus initial deposit, if b4 maturity, we wont get full amount of the interest paid or nothing at all, for e.g. if FD’s tenure for 1 month, then we won’t get any interest at all and if FD is 12-monthly placement (2.5%), withdrawed at 11th month, maybe only get interest of 11th month half of interest rate (1.25%) this is all based on the bank policy, do have a check with the bank first b4 placing any FD.
the only risk FD we got is when choosing tenure. For example, when placing 1 month FD for auto-renewal, suddenly the BNM or the bank announced that the FD interest will DROP…“aiyak, i should have place 12-month back then” is what we will think. Or when place a 12 month FD and the BNM or the bank announced that the FD interest will INCREASE, then we have to think about losing the interest have earn on the months has passed and place a new FD with revised interest rate.
For financial view, FD is the most secure placement that the bank will accept for many credit application like Overdraft, Credit Card, Bills Facility etc.
Do keep the FD receipt well, although it can’t be stolen, the small paper tend to lost, and its normal that the bank will impose charge for FD lost replacement.
One last thing to remember is for the people who place their FD for ages like 7 years, do check your FD to ensure that the FD is not absorbed by the Treasury Department for unclaimed money. Even we can claim back from the Gov, u know how FAST the Gov work to give u back the money.
well it be different case if the bank goes bankruptcy and government cannot help to revive it …! But guess thts low risk ya, how many bank u see go bankrupt?
Who says no risk, if the bank goes bankrupt, you will only be covered RM60000 per bank per person basis, if you have more than rm60000 in a bank then consider burnt lah.
speaking of bank bankruptcy…
theres a lady in australia… she has been carrying her life time saving with her all the time because she believes bank are not stable… one day (recently) her bag got snatched when she was in a shoping centre in victoria… when the police asked her how much she has in her bag… she fainted and got sent to the hospital for shock treatment…
this is the news hhaah
http://www.abc.net.au/news/stories/2010 … 832777.htm
luckily, later polica found the thieves… and managed to recover major portion of the money…
http://www.abc.net.au/news/stories/2010 … 834087.htm
else put the FD in global bank like HSBC. it takes a lots for these banks to go down, they are effectively ‘too big to fail’, just like citibank & AIG, the US govt bailed them out. but then for me bank going bankrupt is near the bottom of my concern, i’ll more concern abt interest rates instead.
according to my research, info from finance profesional, FD is not 0% risk. cause FD is also one of the investment products but not a contract with banks. if the economic down or bank bankrupt, it may affect.
The is always a risk in Monetary related stuff. Even FD got risk. Got one story of one Old lady who cannot get her FD money because the bank suspect that she have Alzheimer and state that she is in no condition to make decision for her self. Actually when she wanted to get the money she was still ok(not sick) but the trial go on for 2 years and because all the stress, she become Alzheimer and the court rules that she cannot get the money now. Sad right? Btw the amount is around 800k sing dollar(this is in singapore). And btw if you really think about FD? in a business man’s eye, money that are not helping you to make more money = liability. Why? ur more stressful keeping it then to use to it =)