![Fixed Deposit (FD) & Time Deposit in Malaysia: Bank Comparison for Japanese Expats [2026 Latest Edition]](/_next/image?url=https%3A%2F%2Fassets.kuraberu.my%2Farticles%2Fcovers%2F2026%2F05%2F9e019699-8361-42ce-86af-7a9d6c666bdf.webp&w=3840&q=75)
For Those Relocating to or Studying in Malaysia
If You're Depositing in Malaysia
If You're Depositing in Malaysia
FD & Fixed Deposits for Japanese Expats
Bank Comparison [2026 Latest Edition]
Even if Malaysian deposit interest rates look higher than Japan's, choosing based on interest rate alone can lead to mistakes. For Japanese expats, not only "yield" but also "safety," "foreign exchange risk," and "ease of withdrawal" are important. It is essential to keep your everyday banking account and your savings/deposit account separate.
📅 Latest Information for 2026 | About an 8-minute read
Table of Contents
- Conclusion First | Banks to Consider for Deposits
- What Is an FD in the First Place?
- Difference Between a Regular Savings Account and an FD
- Key Points Japanese Expats Should Check for FDs
- FD Comparison by Bank
- Why You Shouldn't Choose Based on Interest Rate Alone
- Recommended Options by Deposit Purpose
- For Families Who Moved for Education
- Deposit Simulation
- Risks Japanese Expats Should Be Aware Of
- Should You Also Consider Foreign Currency Deposits?
- Frequently Asked Questions (FAQ)
- Summary
Conclusion First
Conclusion First | For Japanese Expats Depositing in MalaysiaBanks Worth Considering
Interest rates vary depending on timing, promotions, and deposit duration. Please use these as a general reference for comparison.
| Bank | FD Interest Rate | Promotions | Foreign Currency Deposit | App | Best Suited For |
|---|---|---|---|---|---|
| Maybank | ○ | ○ | ○ | ◎ | Beginners / Combined with everyday account |
| CIMB | ○ | ◎ | ○ | ◎ | eFD / App-focused users |
| UOB | ○ | ◎ | ◎ | ○ | Large lump-sum funds |
| HSBC | ○ | ○ | ◎ | ◎ | Foreign currency & Premier tier |
| Standard Chartered | ○ | ○ | ◎ | ◎ | Foreign currency management & large deposits |
| Public Bank | ○ | ○ | △ | △ | Stability-focused & Japanese-language support |
| RHB | ○ | ○ | ○ | ○ | For both corporate & personal use |
※ Interest rates vary depending on the period, promotions, and deposit term. Always check each bank's official website before applying.
Basic Knowledge
So, what isan FD?
FD stands for "Fixed Deposit," which is the equivalent of atime depositin Japan.
Earns a higher interest rate than a regular savings account
In exchange for depositing your money for a fixed period (e.g., 1 month, 3 months, 6 months, 12 months), you earn a higher interest rate than a regular savings account.
Early withdrawal reduces your interest
If you withdraw before maturity, the interest earned may be significantly reduced or forfeited entirely. It is risky to place money you may need soon into an FD.
Promotional rates often come with conditions
There are often conditions such as "new funds only," "online application only," and "minimum deposit required." When comparing, be sure to distinguish between standard rates and promotional rates.
Comparison
Regular savings account vs.FD differences
| Item | Regular savings account | FD / Time deposit |
|---|---|---|
| Interest rate | Low | Higher |
| Withdrawals | Available at any time | Generally must wait until maturity |
| Suitable money | Living expenses / unexpected costs | Surplus funds you won't need soon |
| Risk | Low | Watch out for early withdrawal conditions |
| Suitability for Japanese | Essential for daily use | For managing surplus funds |
💡 It is recommended to keep your everyday account and savings account separate.Money you may need soon — such as tuition or rent — should go in a regular savings account. Only surplus funds you won't need for a while should go into an FD.
Checkpoints
Key points Japanese peoplecare about with FDs
| Comparison item | Why it matters |
|---|---|
| Interest rate | Directly affects your returns. Check and distinguish between standard rates and promotional rates |
| Deposit term | Options such as 1 month, 3 months, 6 months, 12 months, etc. Shorter terms offer more flexibility but lower rates |
| Minimum deposit amount | Whether it starts from RM1,000 or is limited to large amounts. Varies significantly by plan |
| Promotional conditions | Such as new funds only or online-exclusive. Conditions must be confirmed or the promotion may not apply |
| Early withdrawal | Important when you suddenly need to return to Japan or pay tuition. Check withdrawal conditions in advance |
| PIDM protection | Whether it is covered by Malaysia's deposit protection scheme. Some products are not covered |
| Currency exchange risk | A stronger yen means the yen-equivalent value of your RM decreases. Be cautious if you plan to use the money in Japanese yen |
| Foreign currency deposit | For those who want to hold funds in another currency such as USD. Separate foreign exchange fees apply |
| Can it be set up via app? | Whether you can manage it online without visiting a branch |
| Maintenance after returning to Japan | Especially important for those planning to return to Japan in the future. Check whether it can be managed remotely |
Comparison by bank
By bankFD comparison
| Bank | Standard FD | eFD | Campaign | Foreign currency deposit | Minimum deposit | Features |
|---|---|---|---|---|---|---|
| Maybank | ○ | ○ | ○ | ○ | Relatively low | Largest bank, reassuring. Plenty of ATMs |
| CIMB | ○ | ◎ | ◎ | ○ | Relatively low | Easy to complete eFD entirely via the app |
| UOB | ○ | ○ | ◎ | ◎ | Can be slightly higher | Strong in Privilege accounts & foreign currencies |
| HSBC | ○ | ○ | ○ | ◎ | Can be higher | Suited for Premier & foreign currency use |
| Standard Chartered | ○ | ○ | ○ | ◎ | Can be higher | Particularly strong in foreign currency management |
| Public Bank | ○ | △ | ○ | △ | Relatively low | Solid & suited for in-branch consultations |
| RHB | ○ | ○ | ○ | ○ | Depends on bank conditions | Available for both personal and corporate accounts |
* eFD = A fixed deposit completed entirely online or via an app. Interest rates and conditions may vary depending on the period.
Points to Note
Why you should not choosebased on interest rate alone
Campaign interest rates are only temporary
Even if the rate looks high, it will revert to the standard rate once the campaign period ends. It is not uncommon for the rate to drop significantly upon renewal.
High interest rates may come with a high minimum deposit requirement
Many plans come with conditions such as "high interest rate applies only from RM 50,000 or more." It is important to compare based on the actual amount you are able to deposit.
Money you may need to use soon is not suited for FD
If you put money that you may need in the near future — such as tuition fees, rent, visa renewal costs, or emergency travel home — into an FD, you will lose the interest upon early withdrawal.
Risk of loss due to exchange rates when converting back to yen
Even if you earn interest through an FD, converting funds when the yen is strong may reduce the amount you receive in yen. If you plan to use the money in Japanese yen, exchange rates must also be taken into consideration.
For those planning to return to Japan, the remittance route is also important
Check in advance whether you have a reliable route to convert RM to Japanese yen and send it home after returning. The ease of international transfers varies by bank.
By Purpose
DepositRecommendations by Purpose
| Purpose | Recommended Bank | Reason |
|---|---|---|
| Deposit part of living expenses | Maybank / CIMB | Convenient app and ATM access for easy deposits and withdrawals |
| Temporary storage of tuition funds | Maybank / CIMB / UOB | Focus on ease of withdrawal and reliability |
| Invest a lump sum of RM | UOB / HSBC / SC | Strong in large deposits and foreign currency |
| Want to hold funds in foreign currency such as USD | HSBC / SC / UOB | Well-equipped with foreign currency account options |
| Concerned about English / want to consult in Japanese | Public Bank | Some branches may offer Japanese-language support |
| Want to manage together with a corporate account | RHB / UOB / CIMB | Compatible with business use |
Education Migration
For families who have relocated for educational purposes,how much should you deposit?
Families who have relocated for educational purposes often have a large amount of money that may need to be used at short notice, making it risky to put the entire amount into an FD.
⚠️ Examples of money that should NOT be put into an FD
Tuition fees (paid each semester) · Rent (monthly) · Visa renewal costs · Living expenses · Emergency travel home costs
Since you never know when these funds will be needed, it is safer to keep them in a regular savings account that allows immediate withdrawal.
Tuition fees (paid each semester) · Rent (monthly) · Visa renewal costs · Living expenses · Emergency travel home costs
Since you never know when these funds will be needed, it is safer to keep them in a regular savings account that allows immediate withdrawal.
For families who have relocated for educational purposes, the practical approach is to put only "surplus funds that you won't need for the foreseeable future" into an FD.
Simulation
DepositSimulation
This is an estimated interest image for depositing RM50,000 for 1 year (approximate figures, not accounting for taxes or specific conditions).
| Annual Interest Rate | Interest After 1 Year | Total Balance |
|---|---|---|
| 2.5% | RM1,250 | RM51,250 |
| 3.0% | RM1,500 | RM51,500 |
| 3.5% | RM1,750 | RM51,750 |
| 4.0% | RM2,000 | RM52,000 |
※ These are approximate estimates. The actual amount received may differ depending on taxes, campaign conditions, early withdrawal, and other factors. Please check the latest interest rates on each bank's official website.
Risks
Risks Japanese ResidentsShould Be Aware Of
| Risk | Details |
|---|---|
| Exchange Rate Risk | A stronger Ringgit or stronger Yen can change the JPY-equivalent value. Be especially careful if you plan to use the funds in Japanese yen. |
| Early Withdrawal | Withdrawing before maturity may significantly reduce interest earned, or result in no interest at all. |
| Campaign Expiry | Interest rates may decrease upon renewal. It is important to confirm rates in advance. |
| Account Maintenance | Managing the account remotely after returning to Japan can become troublesome. |
| Switching Banks | Moving to a bank with a higher interest rate takes effort. You will need to go through the process of closing the account and re-depositing. |
| Deposit Protection Limit | Check whether the product is covered by PIDM and confirm the coverage limit (RM250,000). Some products may not be eligible. |
Foreign Currency Deposits
Should You Also ConsiderForeign Currency Deposits?
A foreign currency account is one option for those who want to hold assets in USD. However, there are some points to be aware of.
An option for those who want to hold assets in USD
HSBC, Standard Chartered, and UOB are strong in foreign currency accounts. You can hold assets in USD and convert to RM when needed.
Foreign exchange fees apply
A foreign exchange fee is charged each time you convert RM to USD or USD to RM. Costs can add up if you convert frequently.
Think separately about the currency you "use" and the currency you "save"
Families who have relocated for educational purposes may find it easier to manage their finances by separating currencies: RM for daily life, Japanese yen for remittances to Japan, and USD for surplus funds. For funds you plan to use in Japanese yen, be mindful of the timing of currency conversion.
FAQ
Frequently AskedQuestion
Can Japanese nationals open an FD?
Yes, you can. However, just like opening a regular account, you will need a long-term visa, proof of address, a Malaysian phone number, and similar documents. The typical process is to first open a savings account and then apply for an FD through that account.
Can I open an FD on its own?
In most cases, opening a savings account is a prerequisite. Opening an FD on a standalone basis is difficult in the majority of situations. We recommend first opening a savings account for everyday use and then setting up an FD afterwards.
What is the minimum deposit amount?
This varies by bank and plan, but many banks allow you to open an FD from around RM1,000. Plans with promotional interest rates may require a higher minimum deposit (RM5,000 to RM50,000 or more). Please confirm before applying.
Is interest earned on an FD subject to tax?
In Malaysia, FD interest earned by individuals is in principle tax-exempt (as of May 2026). However, as tax regulations may change in the future, please check the latest information with a tax adviser or the relevant bank. For the tax treatment under Japanese law, please consult a tax adviser in Japan.
Can I make an early withdrawal?
You can, but withdrawing before maturity will significantly reduce the interest earned, or you may receive no interest at all. To prepare for situations where you suddenly need funds, we recommend not placing money in an FD that you may need to access at short notice.
Can money sent via Wise be used for an FD?
After transferring money from Wise to your local bank account, you can use the balance in that account to apply for an FD. However, you cannot open an FD directly from Wise. The process is: deposit into your savings account → then apply for an FD from there.
Can I keep my FD running after returning to Japan?
This varies by bank. If you can manage the account via internet banking, remote maintenance is possible; however, there is a risk of the account being frozen due to prolonged inactivity or a change of address. We recommend confirming with your bank before returning to Japan and setting up online account management in advance.
With the yen weakening, should I deposit in RM?
Even experts find currency forecasts difficult to call. Depositing in RM allows you to earn interest, but there is also the risk that if the yen strengthens in the future, the value in yen terms could decrease. It is safer to separate funds you plan to use in Japanese yen from funds you plan to use in Malaysia, and to avoid placing the former in RM deposits for long periods.
Summary
Summary |Separate your everyday account from your savings account
When depositing in Malaysia,don't decide based on interest rate alone— that's the key.
Basic approach to depositing
- ✓Keep living expenses in a savings account(in a state where you can withdraw at any time)
- ✓Put funds you won't use soon into an FD(check the interest rate, term, and early-withdrawal conditions)
- ✓For large sums, also check foreign currency account options and Priority banking conditions
- ✓If you plan to return to Japan, also consider exchange rates and remittance routes
In conclusion, the clearest approach is to think of your "everyday account" and your "savings account" as two separate things.
Bank account opening requirements and interest rates are subject to change. In Malaysia, the information provided may also vary depending on the branch or staff member. This article is based on information available at the time of writing; please always confirm directly with each bank and make decisions at your own discretion.
🔗 Related
Also worth checking
- ✓ Bank account comparison for Japanese nationals — easy to open — an overview of choosing a bank
- ✓ Steps and required documents for opening an account — practical guidance on account opening
- ✓ Latest MM2H requirements (2026 edition) — A visa that requires a fixed deposit. Latest conditions denominated in USD
