Another Personal Finance Tutorial by GenX @ http://www.GenXGenYGenZ.com
Update 20 August 2016 – Maybank GIA-i Profit Sharing was lowered again on 16th August 2016 from 3.75% to 3.58%
Update 18 July 2016 – BNM announced on 13th July 2016 that OPR will be lowered to 3% from 3.25%. As such, Maybank GIA-i Indicated Profit Rate as of 18 July 2016 has also been lowered to 3.75% from previous 4%
Recently I published an article titled The Best Savings Accounts in Malaysia 2016 (I strongly recommend you click here to read this article first if you have not).
In the above said article, you will notice that I did not touch on Islamic Deposit Products. This is because I have very limited knowledge in Islamic Banking products. However, from what I understand, it does not pay interest but instead pays dividend based on profit sharing. In other words, to me, it means that the dividend (interest) quoted is not guaranteed unlike conventional deposit products.
To tell you the truth, you would most likely earn a little more in “interest” if you have opted for the Maybank2U Savers-i instead of the Maybank2U Savers which I recommended in my Best Savings Accounts in Malaysia 2016 article .
Anyway, after I posted the above mentioned article, Mr. Jerie Lim who is one of my Guest Columnist and close iFriend ( a Follower of my blog(s) or a person who has consistently Liked me at Facebook), highlighted to me about Maybank General Investment Account-i which is a “hot topic” currently at LYN.
Besides Jerie, another LYN member who wishes to remain anonymous also took the trouble to message me about the GIA-i in detail.
I tell you, lowyat.net forum (LYN) has many selfless people who are willing to share info for the benefit of all. If you did not know, the reason I started blogging about credit cards was that endless people kept asking the same questions over and over again at LYN. Therefore, I decided to start a blog on credit cards back in 2009 and published articles on credit cards so that I can easily refer questions by LYN members to my articles. And my articles are usually very detailed so that the readers have all the necessary info in one go instead of wasting time asking more questions. Therefore, my articles usually ended up being freaking long… and partly because I am long winded, hahaha.
If you have lots of time or have no idea how to waste time, go check out lowyat.net forum and read the threads there and I can assure you that you will learn lots of stuff (good and bad).
Having said that, I also need to warn you that there are many lurkers and a few conman at LYN, therefore, I would suggest you ignore Personal Messages and never disclose any of your Personal Info to strangers. I cannot understand why the heck would anyone want to compromise their security by giving info to others online (e.g. applying for credit card with a LYN member who claims to be from a particular bank).
It is only natural that many of my iFriends are from LYN since my blog(s) is like a “spin-off” from LYN, and over the years many of them have contributed to my articles in one way or another.
However, LYN is not for everyone. That is where I come in to assist you by publishing FREE articles. Like I said, my articles are very detailed as I wish to provide you with as much info as possible so that you can go use your brain cells to decide if a product is good for you. And if you find that a particular product may benefit you, after reading my article(s), you would have all the basic info to analyze/research further and decide for yourself what is best for you.
Coming back to Maybank General Investment Account-i, Mr. Jerie Lim highlighted to me that we can earn 4% “interest” calculated on daily basis AND the best part is that it can be treated like a Savings Account (you can deposit and withdraw your money anytime without being penalized) even though you have to select minimum 1 month tenure!!!
So, I went and read the Terms and Conditions of the Maybank General Investment Account-i and was astonished that what Mr. Jerie Lim had told me is 100% accurate. So, I am going to share this wonderful “treasure” with all Malaysians to assist them to earn more pocket money.
With this article going live (published), soon all the banks in Malaysia with the exception of Maybank would be hit with a Current Accounts and Savings Accounts (CASA) Withdrawal Tsunami where many of the banks’ management would be left mystified. Maybank on the other hand will be once again be making tons of money from my FREE promotions of their products except that this time it is not related to credit cards but their Islamic Investment products.
Without further ado, I present to you Maybank Mudarabah Investment Accounts.
MAYBANK GOLDEN SAVVY ACCOUNT-i
From the above image (to enlarge the image, you can zoom in), it is extremely important that you take note that the Golden Savvy Account-i is AN INVESTMENT PRODUCT where the profit made from the investment will be shared between the customer and the bank. In other words, no profit, no dividend (interest). And since this is an Investment Product and NOT A DEPOSIT PRODUCT, your Principal is not guaranteed.
If you understand the above paragraph and you are willing to take some risk and you want to earn more in returns from your present Savings Account, then the Maybank Mudarabah Accounts (this Golden Savvy plus another 2 below which I will touch on very soon) may be a good alternative to consider.
Pros and Cons of Maybank Golden Savvy Account-i:
- Only for individuals above age 50 years.
- Minimum initial placement RM1K.
- Principal and returns are not guaranteed by the bank.
- Profit calculated on a daily basis.
- Profit will be paid monthly and not subjected to balance or number of withdrawals.
- Account can only be opened over the counter.
- Closing and withdrawal of funds can be over the counter or via ATM or internet banking.
- 2.8% p.a. Indicative Profit Rate up to 15 May 2016. You can check the indicative rates at Maybank2U at anytime.
- No annual fee Debit Card.
You may be asking what will the profit rate be in the future? Well, that answer only God knows. But below is the Profit Rate for the last few years:
So, for this account, it is best you keep track of the profit rate every month. If you find that the profit rate is lower than conventional Savings Account interest rate, I suppose it would be wise to transfer your money into the Savings Account.
MAYBANK NET ACCOUNT-i
This Maybank net Account-i is open to anyone above age 18 years and has many similarities with the Maybank Golden Savvy Account-i. The main differences are that the Maybank net Account-i is an online investment account and comes with a cheque book. This means, you cannot open it over the counter.
Basically, you can treat the Maybank net Account-i the same as a Current Account. Therefore, like most conventional current accounts, you will be imposed a Service Fee of RM10 per half year; but for the Maybank net Account-i case, it is waived if you have an average balance of RM1K within 6 months.
However, there is one freebie that the Maybank net Account-i will reward you versus the Maybank Golden Savvy Account-i, i.e you get FREE Takaful Personal Accident Insurance.
Pros and Cons of Maybank net Account-i:
- Online investment account.
- Open to anyone above age 18 years old.
- Minimum initial placement RM500.
- Cheque book.
- Cash withdrawal via ATM.
- Principal and returns are not guaranteed by the bank.
- Profit calculated on a daily basis.
- Profit will be paid monthly and is not subjected to balance or number of withdrawals.
- 2.8% p.a. Indicative Profit Rate up to 15 May 2016. You can check the indicative rates at Maybank2U at any time.
The Maybank net Account-i is good for those who are still using cheques. So if your current account now pays you miserable interest rate, you can consider Maybank net-Account which can earn you some extra pocket money as the indicative profit rate until 15 May 2016 is 2.8%
If you do not want the cheque book, just treat it like a Savings Account.
Once again, for this account, I would advise you to keep track of the profit rate every month.
MAYBANK GENERAL INVESTMENT ACCOUNT-i (GIA-i)
Pros and Cons of Maybank General Investment Account-i:
- Can be placed Over the Counter or via Online.
- Open to anyone above age 18 years old and even minors.
- Minimum initial placement of RM1,000.
- Profit calculated daily.
- Profit will be paid monthly AND it is not subject to tenure or number of withdrawal.
- Principal and returns are not guaranteed by the bank.
- 4.0% p.a. Indicative Profit Rate up to 15 May 2016. You can check the indicative rates at Maybank2U at any time.
- The Indicative Profit Rate is NOT Guaranteed.
Once again, it is extremely important that you take note that the Maybank General Investment Account-i is AN INVESTMENT PRODUCT where the profit made from the investment will be shared between the customer and the bank. Since this is an Investment Product and NOT A DEPOSIT PRODUCT, your Principal is not guaranteed.
If you understand the above paragraph and you are willing to take some risk and you want to earn more in interest from your present Savings Account and maybe even more than Fixed Deposit Promo, then this Maybank Mudarabah General Investment Account-i is a very good alternative to consider.
Now, you may be wondering why the heck I said that this GIA-i is a very good Savings Account alternative when we have to invest minimum 1 month according to Maybank’s webpage (image above)? Well, thanks to Mr. Jerie Lim, I am going to show you that the tenures are immaterial and you can withdraw anytime and yet earn profit sharing (interest) for the number of days your fund was parked in the GIA-i account.
If you refer to Maybank Mudarabah GIA-i Product Disclosure Sheet (the image above), read carefully the following:
Operational Features – Similar operational features with term deposit accounts whereby customers will be able to withdraw anytime via over the counter and internet banking (Maybank2U) with the option to renew and extend the placement.
Well, we can withdraw the GIA-i account any time. But we are all very well aware that for Term Deposits, if we prematurely make a withdrawal, we will be penalized.
Now read the following:
Holding Period For Investment – NONE!
Closing of Account/withdrawal – Customers may withdraw their funds and close their accounts anytime. Profit will be paid based on number of days of the investment, notwithstanding premature withdrawal or closing of account.
What the above, highlighted in red, means is that you are guaranteed profit sharing for the number of days you park your money in the Maybank GIA-i account and won’t be penalized a single sen even if you make a premature withdrawal! Even if you only park your money in the GIA-i account for a single day, you will earn 4% p.a. profit sharing for that day (interest).
You are paid monthly profit sharing BASED ON WHAT IS DECLARED BY MAYBANK FOR THAT PARTICULAR MONTH. So, it is immaterial if you place your money in the GIA-i for 1 month or 2 months tenure because the profit rate is not guaranteed until it is declared and the profit rate may change the following month.
I have mentioned earlier that the Indicate Profit Rate is not guaranteed. The following image shows the past profit rates declared by Maybank for their GIA-i account:
I have been a lowyat.net member for ages and I have learned a lot previously by reading other people posts/comments. However, since 2 years back, I have been going overseas very frequently; as such, I have not been reading the posts there as frequently as I would like.
Many people have also learned and appreciated what I have shared at LYN over the years besides my articles. So, nowadays, many of them reciprocate by messaging me to share good stuff with me.
This article would not have been published if not for LYN members (and in particular LYN members with the nicknames cybpsych and Nom-el) who selflessly shared about their findings about the Maybank General Investment Account-i AND Mr. Jerie Lim who took the trouble to highlight this particular account.
Now, the Maybank Mudarabah Accounts ARE NOT DEPOSIT PRODUCTS unlike conventional Savings Accounts or Fixed Deposits where the Principal Sums and interest payments are guaranteed. The Maybank Mudarabah Accounts are INVESTMENT PRODUCTS and it is clearly stated by Maybank that there is a possibility that you may not even get back your Principal Sum. Of course, the probability of you losing money with the Maybank Mudarabah Accounts is very slim, but since the fund/investment is managed by humans where their actions are influenced by their emotions, mistakes are bound to happen.
So, if you ask me, I would say that you should not deposit all your life savings into the Maybank Mudarabah Accounts but utilize them to park your money that is required to pay for your expenses, i.e. short term period of up to 3 months. The reason being, you can get better interest rates with Fixed Deposit Promotions for 3 months tenure and above.
In respect of the above said paragraph, out of the 3 Maybank Mudarabah Accounts mentioned above, the only account you really need to park your money for a short term period is the General Investment Account-i; this is simply because you will get better returns, even if it is just for a single day.
Considering the fact that the Maybank GIA-i account guarantees you profit for the number of days your money was parked in the account even though you “prematurely” withdraw the money before the maturity date, you can treat the Maybank GIA-i account like a Savings Account!!! The only condition for you to earn the indicated profit rate of 4% is that you need minimum RM1K.
I will now give you an example as to why I say that the Maybank GIA-i can be treated like a Savings Account.
- You have RM3000 on 16th May 2016 parked in Maybank2U Savers Account.
- On the same day, you go transfer the RM3K into Maybank GIA-i account for 2 months tenure since you can’t go with 1 month tenure as the minimum investment amount required is RM5K.
- On 26th May 2016, you go withdraw the GIA-i investment and transfer it back into your Maybank2U Savers account because you need to go pay your Maybank credit card bill on 27th May 2016.
- Therefore, the RM3K was invested in the GIA-i account for a totao of 10 days.
Once again, below is what was stated in Maybank GIA-i Product Disclosure Sheet:
Closing of Account/withdrawal –
- Customer may withdraw their funds and close their accounts at any time.
- Profit will be paid based on the number of days of the investment notwithstanding premature withdrawal or closing of account.
What the above means is that you will earn profit for the 10 days you parked your RM3K in the GIA-i account.
Come 1st June, you should be payed RM3.28 (RM3K x 4% x 10days/365 days), credited into the account you have instructed when you sign up for the GIA-i investment.
UPDATE July 2016 – Actually, you are paid the dividend immediately upon making withdrawal and you do not need to wait until end of the month. I.e., if you have M2U online account, you will see the dividend credited immediately into your Maybank Savings Account which you have instructed when making the placement.
You can have multiple GIA-i placements at any one time. For example, one may split his/her RM3K into two GIA-i 2 months tenure investments at the same time; one of them is RM2K and the other, RM1K. He/she will then withdraw the RM1K on a particular day to pay his UOB VOX credit card bill and withdraw the RM2K two weeks later to pay his Maybank credit card bill.
What you should do is, anytime you have RM1K and above, you should go “deposit” the money into GIA-i and earn Profit Rate of 4%. And with time, if you have too many “certs”, just withdraw them and combine them into a new “cert”.
I tell you, the Maybank GIA-i is really a wonderful product as you can invest anytime of the day via Maybank 2U Online Account and withdraw it anytime without being penalized. You can park your money into the GIA-i for just a single day and yet you will earn profit rate of 4% p.a. I tell you, the Maybank Mudarabah General Investment-i is better than any of the Savings Accounts mentioned in my article The Best Savings Account in Malaysia 2016 and even better than any 1 month Fixed Deposit interest rate you can find. Not only that, it is also even better than Maybank Money Market Q-Cash which I highlighted in the same said article.
Best of all, 4% returns with the Maybank Mudarabah GIA-i is better than any Fixed Deposit Board Rates including Maybank’s. And you only need a mere RM1K placement for the Maybank GIA-i versus RM10K to be eligible for Fixed Deposit Promotions offered by most commercial banks including Maybank itself 🙂
So guys, if you don’t have a Maybank 2U Online Account, you should go open a Maybank Basic Savings account immediately and then sign up for Maybank 2U Online Account and go try out Maybank Mudarabah General Investment Account-i and see for yourself if you really earn about 4% p.a. profit rate (interest rate) or am I bull shitting you, hahaha.
I guess you should also sign up for Maybank2U Savers (or Savers-i) Online Account too so that you can transfer your money between Maybank GIA-i and M2U Savers. The M2U savers allows you to transfer funds in and out via GIRO besides paying your bills.
This Maybank Mudarabah GIA-i is so fantastic that I’m willing to bet that many of Maybank competitors’ staff will start withdrawing their money in their Savings Account in the bank they work with and go invest their money with Maybank after reading this, hahaha. And if you happened to be a Senior Management of a bank (other than Maybank) reading this article, you’ll know why all your premier credit cards customers who read my article(s) have gotten smarter and no longer use your bank issued card(s). So, you better come up with a similar product like Maybank’s GIA-i really fast before everyone who reads this start withdrawing their money from your bank’s Current Account and Savings Accounts, hahaha.
And with me telling every Malaysian, especially my Fixed Deposit “kakis” (aka my FD Followers) that the Maybank GIA-i is offering profit rate of 4% p.a., the banks will have to continue offering Fixed Deposit Promos where the interest rates would not be less than 4% just to stay competitive, or else we “kiasu” people (not the “kiasi”) would most likely transfer all our funds into Maybank GIA-i account, hahaha.
Last but not least, remember that I have warned you that Maybank GIA-i is NOT A DEPOSIT PRODUCT and there is a possibility that you may even lose your Principal Sum; as such good luck to all of you “kiasu” people (including me) who deposit our money in Maybank GIA-i and we better pray hard that this would never ever happen. As for the “kiasi” people, they would definitely park their money in Fixed Deposits or Savings Accounts where the Principal Sum and Interest are guaranteed, hahaha.
Now that you have learned how to make more pocket money to buy more temporary happiness, click here and I will thell you The Secret to Eternal Happiness.
And if you have children and for your own good, you must read my article titled Spending Your Children’s Future Inheritance.
Another Personal Financial Tutorial by GenX