Fixed/Term Deposits
Fixed Term Deposits
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FAQs about Alliance Bank’s Fixed Deposit Account
A fixed deposit account, also known as a term deposit or time deposit, is a type of financial instrument provided by banks and other financial institutions. It enables you to deposit a specific amount of money for a set of period of time at a fixed interest rate.
In summary, this is how a fixed deposit account works:
Deposit: You make a deposit into a fixed deposit account, the minimum amount of which varies based on the account specifications.
Term: You decide how long you want the money to be locked up for. The duration can range from a few months to several years. Premature withdrawal of funds may result in penalties during this time period.
Interest Rate: Because you are committing to keeping the money untouched for a defined amount of time, the fixed deposit rate is usually higher than what you would receive in a standard savings account.
Interest Calculation: The interest on a fixed deposit is usually calculated on a simple interest basis or compounded interest basis. Simple interest is calculated only on the initial principal amount, whereas compounded interest is calculated on the principal and the interest earned in previous periods. The interest can be paid out periodically (monthly, quarterly, annually) or at maturity.
Maturity: The fixed deposit matures at the end of the term chosen. You have the option of renewing the deposit for another term or withdrawing the funds and the accumulated interest. If you do not give instructions as the account holder, certain banks may automatically renew the deposit for the same term at the prevailing interest rate
Alliance Bank Malaysia provides more than just a typical fixed deposit account. In addition to competitive fixed deposit interest rates, our range of fixed deposit accounts offer flexible tenure of placement, convenient placement, withdrawal, and monitoring via allianceonline mobile app, Alliance Privilege Banking membership and other benefits of being our fixed deposit account holder.
Yes, you can! Download the allianceonline mobile app and sign up to apply for an online fixed deposit account.
There are no fees or charges to open or maintain a fixed deposit account with us.
The minimum placement amount for Fixed Deposit and e-Fixed Deposit is RM5,000 for 1-month tenure and RM500 for tenures above 1 month.
The minimum placement amount for Alliance FD Gold and e-Alliance FD Gold is RM30,000.
The interest on a fixed deposit is usually calculated on a simple interest basis or compounded interest basis. Simple interest is calculated only on the initial principal amount, while compounded interest is calculated on the principal and the interest earned in previous periods.
Fixed deposit rates -in Alliance Bank Malaysia, are normally calculated daily in monthly tenures of months with a counter rate and 2nd tier rate (which is lower than the counter rate and applicable to (1). Non-resident individuals, (2). Non-individual entities, such as SMEs or Corporations or Business Enterprises make FD placement above RM1.0 million).
The following are the fixed deposit account tenures offered by Alliance Bank Malaysia. Please note that the specifications are subject to change from time to time. For the most up-to-date information, please check our fixed deposit’s product page. Latest update as at 10th May 2023:
Fixed Deposit
e-Fixed Deposit
Alliance FD Gold
e-Alliance FD Gold
Changing the tenure of a fixed deposit account after it has been opened might have many consequences.
Early Withdrawal: Changing the tenure of your fixed deposit account before the maturity date is often treated as an early withdrawal. This means you could face a penalty or lose some of your interest earned.
Interest Rate Adjustment: When you change the tenure of your fixed deposit account, the bank may adjust the interest rate based on the prevailing rates. As a result, the new interest rate that is applied to the amended tenure may differ from the original interest rate.
If you wish to change the tenure of a fixed deposit account after it has been opened, please contact our customer service or visit your nearest Alliance Bank Malaysia branch to facilitate this request.
Yes, you may add additional funds to your existing fixed deposit account anytime. Do note that there will be a difference in interest calculation depending on the type of fixed deposit account. Please refer to the product’s terms and conditions for more information.
Yes, individuals (Malaysian citizens, permanent residents, and foreigners) who have attained the age of at least eighteen (18) years are eligible to open a joint Fixed Deposit Account. Children below eighteen (18) years old must be accompanied by a parent or guardian.
There is no maximum limit of fixed deposit accounts you can open with Alliance Bank Malaysia.
Yes, you can.
For selected types of loans, you can pledge your fixed deposits as collateral.
You can view your Fixed Deposit/Alliance FDGold placement and account details conveniently via allianceonline mobile app.
Yes, you can opt to have your fixed deposit interest credited to your savings account upon renewal after maturity (only applicable for e-Fixed Deposit and e-Alliance FD Gold).
Yes, you have the option to withdraw funds or close your fixed deposit account anytime. Please note that with effect from 1 January 2019, no interest shall be paid for premature withdrawal/upliftment of the Fixed Deposit that is placed or renewed prior to and or from 1 January 2018. The same applies to e-Fixed Deposit or e-Alliance FD Gold opened through allianceonline.
In terms of interest rates, an e-Fixed Deposit (eFD) is similar to a traditional fixed deposit. The differences are:
- eFD can be applied online at allianceonline, whereas a regular fixed deposit is applied physically in Alliance Bank Malaysia branches
- eFD has tenure placement between 1-12 months, whereas a regular fixed deposit has tenure placement between 1-60 months
- eFDs have the option of auto-renewing principal and profit earned or renewing principal but transferring profit earned into your own account upon maturity
- eFD’s placements and withdrawals can be made anytime via allianceonline from 6am to 11pm, whereas this feature is not available in a regular fixed deposit
- No physical certificate will be issued for eFD, whereas a traditional fixed deposit comes with a physical certificate