Malaysia Best Foreign Currency Fixed Deposit Rates [Apr 2025]
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A Foreign Currency Fixed Deposit (FCFD) is a time deposit account that allows individuals to invest in foreign currencies for a predetermined period at a fixed interest rate. This financial instrument is particularly relevant for Malaysians seeking to diversify their investment portfolios and hedge against currency fluctuations.
By holding funds in various currencies, investors can potentially benefit from higher interest rates offered by certain foreign currencies, diversify their monetary assets, protect against domestic inflation, and preserve wealth by mitigating risks associated with currency depreciation.
What is a fixed deposit (FD)?
A fixed deposit (FD) is a financial product offered by banks and financial institutions where you deposit a lump sum for a fixed period at a predetermined interest rate. Unlike a regular savings account, an FD restricts withdrawals until maturity, making it a low-risk investment option.
FD tenures can range from one month to several years, depending on the bank's offerings. Since the interest rate is fixed at the time of deposit, returns are guaranteed and remain unaffected by market fluctuations. This makes FDs a popular choice for individuals seeking secure and predictable returns over riskier investments like stocks or mutual funds.
When you open an FD account, you deposit a specific amount for a set tenure. In return, the bank offers a fixed interest rate, determined based on factors such as tenure, deposit amount, and prevailing economic conditions. Interest can be compounded monthly, quarterly, or yearly, depending on the FD’s terms.
At the end of the tenure—also known as maturity—you can either withdraw the principal plus interest or renew the FD for another term. However, if you withdraw early, you may face penalties or reduced interest earnings.
FDs provide a structured and disciplined way to grow your savings while ensuring stable, market-risk-free returns.
Types of fixed deposits in Malaysia
Fixed deposits (FDs) in Malaysia are broadly categorized into Malaysian Ringgit (MYR) Fixed Deposits and Foreign Currency Fixed Deposits (FCFDs). Both types offer a fixed interest rate over a predetermined tenure, but they differ in currency denomination, risk exposure, and investment benefits.
MYR fixed deposits
MYR Fixed Deposits come in different types to cater to various investor needs. These include Conventional Fixed Deposits, Islamic Fixed Deposits (IFD), Senior Citizen Fixed Deposits, and Flexible or Auto-Renewal Fixed Deposits.
Each type offers unique benefits depending on financial goals, risk tolerance, and liquidity needs:
| Type of Fixed Deposit | Key Features |
|---|---|
| Conventional Fixed Deposits | Fixed interest rates; Tenure: 1 month to 5 years; Early withdrawal may incur penalties; PIDM insured up to RM250,000 |
| Islamic Fixed Deposits (IFD) | No interest (riba); Shariah-compliant (Mudharabah/Tawarruq); Tenure: 1 month to 5 years; PIDM insured up to RM250,000 |
| Senior Citizen Fixed Deposits | Higher interest rates; For individuals aged 50 or 60+; Tenure: 6 months to 5 years; Some banks offer lower penalties; PIDM insured up to RM250,000 |
| Flexible / Auto-Renewal Fixed Deposits | Allows partial withdrawal while maintaining FD; Auto-renewal option; Tenure: 1 month to 5 years; PIDM insured up to RM250,000 |
Foreign currency fixed deposits
A Foreign Currency Fixed Deposit (FCFD) is a type of fixed deposit where individuals or businesses deposit money in a currency other than the Malaysian Ringgit (MYR).
Unlike MYR Fixed Deposits, where the returns are solely determined by the fixed interest rate, FCFDs are also influenced by foreign exchange rates, meaning depositors can gain or lose value based on currency appreciation or depreciation.
Common Foreign Currencies for FCFDs in Malaysia
- US Dollar (USD)
- Euro (EUR)
- British Pound (GBP)
- Australian Dollar (AUD)
- New Zealand Dollar (NZD)
- Singapore Dollar (SGD)
- Hong Kong Dollar (HKD)
- Chinese Yuan (CNH)
- Swiss Franc (CHF)
- Canadian Dollar (CAD)
FCFDs can be beneficial for those looking to diversify holdings and capitalize on currency appreciation opportunities while earning interest.
Best USD fixed deposit rate in Malaysia [Apr 2025]
| Bank | Tenure | Interest rate per annum (%) | Minimum amount |
|---|---|---|---|
| CIMB | 1 week - 12 months | 4.05 - 4.50 | RM 10,000 |
| Hong Leong Bank | 2 weeks - 12 months | 0.15 - 0.95 | USD 1,000 |
| Alliance Bank | 1 week - 12 months | 4.10 - 4.55 | USD 5,000 |
| HSBC | 1 month - 12 months | 3.56 - 3.83 | USD 3,000 |
| Standard Chartered Bank | 12 months | Up to 4.50 | USD 10,000 |
| UOB | 1 week - 12 months | 2.85 - 3.75 | USD 5,000 |
| 1 week - 12 months | 3.22 - 3.85 | USD 100,000 | |
| Bank of China | 1 month - 12 months | 3.90 - 4.40 | USD 500 |
| RHB | 1 week - 12 months | 2.60 - 4.25 | USD 2,000 |
Best GBP fixed deposit rate in Malaysia [Apr 2025]
| Bank | Tenure | Interest rate per annum (%) | Minimum amount |
|---|---|---|---|
| CIMB | 1 week - 12 months | 4.1 - 4.55 | RM 10,000 |
| Hong Leong Bank | 1 month - 12 months | 0.30 - 0.90 | £ 1,000 |
| Alliance Bank | 1 week - 12 months | 4.30 - 4.80 | £ 5,000 |
| HSBC | 1 month - 12 months | 3.62 - 3.87 | £ 2,000 |
| Standard Chartered Bank | 12 months | Up to 4.50 | USD 10,000 |
| UOB | 1 week - 12 months | 2.41 - 3.46 | £ 5,000 |
| 1 week - 12 months | 2.61 - 3.635 | £ 100,000 | |
| Bank of China | 1 month - 12 months | 4.00 - 4.40 | £ 500 |
| RHB | 1 week - 12 months | 2.35 - 4.25 | USD 2,000 |
Best EUR fixed deposit rate in Malaysia [Apr 2025]
| Bank | Tenure | Interest rate per annum (%) | Minimum amount |
|---|---|---|---|
| CIMB | 1 week - 12 months | 2.20 - 2.60 | RM 10,000 |
| Hong Leong Bank | N/A | N/A | N/A |
| Alliance Bank | 1 week - 12 months | 2.60 - 3.00 | € 5,000 |
| HSBC | 1 month - 12 months | 1.51 - 1.67 | € 2,000 |
| Standard Chartered Bank | N/A | N/A | N/A |
| UOB | N/A | N/A | N/A |
| Bank of China | 1 month - 12 months | 2.70 - 2.90 | € 500 |
| RHB | 1 week - 12 months | 1.5 - 2.35 | USD 2,000 |
Best AUD fixed deposit rate in Malaysia [Apr 2025]
| Bank | Tenure | Interest rate per annum (%) | Minimum amount |
|---|---|---|---|
| CIMB | 1 week - 12 months | 3.85 - 4.25 | RM 10,000 |
| Hong Leong Bank | 3 months - 12 months | 0.05 - 0.25 | AUD 1,000 |
| Alliance Bank | 1 week - 12 months | 3.70 - 4.35 | AUD 5,000 |
| HSBC | 1 month - 12 months | 2.79 - 3.20 | AUD 3,000 |
| Standard Chartered Bank | 12 months | Up to 4.50 | USD 10,000 |
| UOB | 2 weeks - 12 months | 1.47 - 2.51 | AUD 5,000 |
| 2 weeks - 12 months | 1.92 - 3.08 | AUD 100,000 | |
| Bank of China | 1 month - 12 months | 3.40 - 3.80 | AUD 500 |
| RHB | 1 week - 12 months | 1.75 - 3.95 | USD 2,000 |
What are the pros and cons of foreign currency fixed deposits?
Foreign Currency Fixed Deposits (FCFDs) offer a way to diversify savings and potentially earn higher returns in foreign currencies. They are ideal for individuals looking to hedge against MYR depreciation, secure funds for future international expenses, or take advantage of favorable interest rates in stronger economies.
However, FCFDs come with certain risks, such as exchange rate fluctuations, lower liquidity due to lock-in periods, and potential fees that may reduce overall returns. Before investing in an FCFD, it is essential to weigh the benefits and drawbacks to determine if it aligns with your financial goals.
| Pros | Details |
|---|---|
| Higher interest rates than MYR FDs ✅ | Some foreign currencies, such as USD, AUD, and NZD, offer higher interest rates than MYR fixed deposits, providing better returns. |
| Currency diversification ✅ | Helps protect savings from MYR depreciation. If MYR weakens, the value of the foreign currency deposit increases when converted back. |
| Hedge against inflation ✅ | Holding funds in stronger currencies like USD or CHF can help preserve wealth in high-inflation environments. |
| Lower risk than forex trading ✅ | Unlike forex trading, FCFDs provide stable, fixed returns without market speculation and leverage risks. |
| Access to international currencies ✅ | Useful for individuals planning to study, work, or invest abroad, ensuring funds are available in the required currency. |
| Potential capital gains from currency appreciation ✅ | If the foreign currency strengthens against MYR, depositors can benefit from both interest earnings and exchange rate gains. |
| Hold multiple currencies without immediate conversion ✅ | Many banks allow foreign currency accounts, reducing the need for immediate conversion into MYR. |
| Cons | Details |
|---|---|
| Exchange rate risk ❌ | If the foreign currency weakens against MYR, depositors may lose value when converting back. |
| Lock-in period reduces liquidity ❌ | Early withdrawal may result in penalties or lower interest earnings, limiting access to funds. |
| Withholding tax & fees ❌ | Some foreign deposits are subject to withholding tax, conversion fees, and administrative charges, reducing net returns. |
| Interest rate disparities ❌ | Some currencies, like JPY and CHF, have low or negative interest rates, making them less attractive for FCFDs. |
| Limited protection compared to MYR FDs ❌ | Foreign currency deposits are not covered by PIDM, unlike MYR deposits, which are insured up to RM250,000. |
StashAway USD Cash Yield: An alternative to FCFD
StashAway’s USD Cash Yield Portfolio offers investors an opportunity to earn 4.3% p.a. by investing in short-term US Treasury bonds (up to three months’ maturity).
This portfolio is designed for those who want to grow their wealth in USD, diversify cash holdings, or save for future travel, investments, or education abroad.
Key benefits of the USD Cash Yield Portfolio:
- Higher Yield in USD: 4.3% p.a. on cash holdings, significantly better than traditional MYR fixed deposits.
- Low Risk, High Liquidity: Invests in US Treasury bonds, backed by the US government, with minimal credit risk and easy access to cash.
- Customizable Portfolio: Start with 99% exposure to short-term US Treasuries and personalize your portfolio with over 55 asset classes.
- No Lock-in, No Minimum Investment: Flexible deposits and withdrawals, with a low 0.3% management fee and minimal ETF and currency conversion costs.
For those looking for a secure and liquid way to earn in USD, StashAway’s USD Cash Yield Portfolio presents a compelling alternative to fixed deposits and traditional savings.
Foreign Currency Fixed Deposits as a safe, low-risk investment alternative
Diversification is a key strategy in protecting and growing wealth. Holding all your savings in one currency—especially a volatile one—can expose you to unnecessary risks, such as currency depreciation and inflation. By spreading your funds across different assets and currencies, you can reduce financial risks and enhance stability.
Foreign Currency Fixed Deposits (FCFDs) offer a safe and low-risk way to diversify your cash holdings, especially for those looking to hedge against MYR depreciation or inflation. Unlike forex trading, which is speculative and volatile, FCFDs provide guaranteed interest returns with minimal risk.
Key reasons why FCFDs are a great alternative:
- Currency Protection: Shields your savings from MYR fluctuations and inflation.
- Stable & Predictable Returns: Offers fixed interest rates, often higher than MYR deposits.
- Low-Risk Diversification: Allows you to hold foreign currency without market speculation.
- Access to Global Currencies: Useful for future travel, education, or overseas investments.
For investors seeking a secure way to diversify while earning steady returns, FCFDs provide a practical and risk-managed solution. 💰🌎
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