Malaysia Fixed Deposite Rates
Alvin Lim, a blogger, has compiled a useful list of Fixed Deposit (FD) rates of banks in Malaysia. If you look at the data, the highest FD rates in Malaysia is pity low, 2.5% per annum.
Assuming the inflation rate of Malaysia is about 3% annually. If we put our money in fixed deposite, our money is actually depreciating at the rate of -0.5% annually. Although it is safe to put money in fixed deposite but it is a kind of risk too because you know your money is depreciating from year to year. Maybe after 10 years, your 10,000 in FD may not worth 10,000 anymore.
To me, alternately, if I want my money to be 99% safe and also to avoid the risk of value depreciation, I think I will invest my money in REITs (Real Estate Investment Trusts). REITs give quite reasonable returns (most of them have divididend yield of 6-12%) and their earning are quite sustainable even though in market downturn.
Where will you invest? FD, unit trusts, goverment trusts or you have better options?
FD??? too pity… Government trusts??? Ehhhmmm… un-trust-able! I prefer unit trusts initially, but now has turn to shares instead.