Investment earnings are higher than bank fixed deposit interest
Most people like you think that Fixed Deposit (FD) is a sure win investment.
Most banks offer minimum RM 5,000 term deposits period for one month. However if it exceed more than one month, a minimum deposit of RM 1,000 is withhold on it by the bank. All banks are the same.
It offers interest around 3-4% p.a, and on special occasions, it may offer as much as 7.5% (subject to banking regulations) .
You place RM 5,000 investment as fixed deposit for six months at the bank interest rate of 3.5% p.a. After six months, your interest accrued is only RM 87.50 .
Similarly say if we put RM 5,000 as investment in Syarikat Takaful Malaysia Bhd 6139 stock, six months later …
Investment in Syarikat Takaful Malaysia Bhd 6139 stock:
Capital needed: RM 2.364 x 20 lots (2,000 units) = RM 4,728 (less than RM 5,000)
Should you sell it at RM 4.00, then your profit is (RM 4 – RM 2.364) x 2,000 units
= RM 3,272, in less than six months, which is quite a substantial profits.
Investment in stock using the same capital is 37 times higher than fixed deposit interest.
You still insist on fixed deposit?
It is time for you change to the rich investment financial management, and without a lot of money.