![Fixed Deposit (FD) & Time Deposit in Malaysia: Bank Comparison for Japanese Residents [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 Japanese moving to or studying in Malaysia
If You're Depositing in Malaysia
If You're Depositing in Malaysia
FD & Fixed Deposits for Japanese Residents
Bank Comparison [2026 Latest Edition]
Even if Malaysian deposit rates look higher than Japan's, choosing based on interest rates alone is a recipe for failure. For Japanese residents, not only the "yield" but also "safety," "foreign exchange risk," and "ease of withdrawal" are important. It is essential to think of your everyday banking account and your savings/deposit account separately.
📅 Latest information for 2026 | Approximately 8-minute read
Table of Contents
- Bottom Line First | Banks to Consider for Deposits
- What Is an FD in the First Place?
- Difference Between a Savings Account and an FD
- Key Points Japanese Residents Care About with FDs
- FD Comparison by Bank
- Why You Shouldn't Choose Based on Interest Rate Alone
- Recommendations by Deposit Purpose
- For Families on an Education-Based Move
- Deposit Simulation
- Risks Japanese Residents Should Be Aware Of
- Should You Also Consider Foreign Currency Deposits?
- Frequently Asked Questions (FAQ)
- Summary
Bottom Line First
Bottom Line First | If You're a Japanese Resident Looking to DepositBanks to Consider
Interest rates vary depending on the time, campaigns, and deposit period. Please use these as a reference for comparison.
| Bank | FD Interest Rate | Campaign | Foreign Currency Deposit | App | Best For |
|---|---|---|---|---|---|
| Maybank | ○ | ○ | ○ | ◎ | Beginners / Combined with everyday account |
| CIMB | ○ | ◎ | ○ | ◎ | eFD / App-focused users |
| UOB | ○ | ◎ | ◎ | ○ | Lump-sum deposits |
| HSBC | ○ | ○ | ◎ | ◎ | Foreign currency / Premier-tier customers |
| Standard Chartered | ○ | ○ | ◎ | ◎ | Foreign currency management / Large deposits |
| Public Bank | ○ | ○ | △ | △ | Stability-focused / Japanese-language support |
| RHB | ○ | ○ | ○ | ○ | Corporate and individual combined use |
※ Interest rates vary depending on the time, campaigns, and deposit period. Always check each bank's official page before applying.
Basic Knowledge
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 money for a set period (1 month, 3 months, 6 months, 12 months, etc.), you earn a higher interest rate than a regular savings account.
Early withdrawal reduces interest earned
If you withdraw before maturity, the interest is significantly reduced or may not be paid at all. It is risky to put money you might need to access soon into an FD.
Campaign interest rates often come with conditions
There are many conditions such as "for new funds only," "online application only," and "minimum deposit amount required." When comparing, be sure to distinguish between the standard rate and the campaign rate.
Comparison
Difference Between a Savings Account andan FD
| Item | Savings Account | FD / Fixed Deposit |
|---|---|---|
| Interest Rate | Low | Higher |
| Withdrawal | Available anytime | Basically wait until maturity |
| Suitable money for | Living expenses / unexpected costs | Surplus funds you won't use soon |
| Risk | Low | Watch out for early withdrawal conditions |
| Suitability for Japanese residents | Essential for daily banking | For managing surplus funds |
💡 It is recommended to keep your everyday account and savings deposit account separate.Money you may need soon — such as tuition fees or rent — should go in a regular savings account. Only surplus funds you won't need for a while should go into an FD.
Key Checkpoints
Points Japanese residentscare about with FDs
| Comparison item | Why it matters |
|---|---|
| Interest rate | Directly affects your returns. Check both the standard rate and any promotional rate |
| Deposit term | Options such as 1 month, 3 months, 6 months, 12 months. Shorter terms are more flexible but offer lower rates |
| Minimum deposit amount | Is RM 1,000 enough, or is it limited to larger amounts? Varies greatly by plan |
| Promotional conditions | New funds only, online-only, etc. Conditions must be confirmed, or the promotion may not apply |
| Early withdrawal | Important when an urgent return to Japan or tuition payment arises. Confirm withdrawal conditions in advance |
| PIDM protection | Whether the product is covered by Malaysia's deposit protection scheme. Some products are not covered |
| Currency risk | A stronger yen reduces the yen-equivalent value of RM. Take note if you plan to use the funds in Japanese yen |
| Foreign currency deposit | For those who want to hold funds in USD or another currency. Separate foreign exchange fees apply |
| Can it be opened via app? | Whether you can manage it online without visiting a branch |
| Account maintenance after returning to Japan | Especially important for those planning to return to Japan in the future. Check whether remote management is possible |
Bank-by-Bank Comparison
Bank-by-BankFD Comparison
| Bank | Standard FD | eFD | Promotion | Foreign currency deposit | Minimum deposit | Features |
|---|---|---|---|---|---|---|
| Maybank | ○ | ○ | ○ | ○ | Relatively low | Largest bank, reassuring. Plenty of ATMs |
| CIMB | ○ | ◎ | ◎ | ○ | Relatively low | Easy to open and manage eFDs entirely via the app |
| UOB | ○ | ○ | ◎ | ◎ | May be slightly higher | Strong in Privilege accounts and foreign currency |
| HSBC | ○ | ○ | ○ | ◎ | May be higher | Suited for Premier and foreign currency needs |
| Standard Chartered | ○ | ○ | ○ | ◎ | May be higher | Particularly strong in foreign currency management |
| Public Bank | ○ | △ | ○ | △ | Relatively low | Steady and reliable; suited for in-branch consultations |
| RHB | ○ | ○ | ○ | ○ | Depends on bank conditions | Suitable for both personal and corporate consideration |
※ eFD = a fixed deposit managed entirely online or via app. Interest rates and conditions are subject to change over time.
Important Notes
Why you shouldn't choosebased on interest rate alone
Promotional interest rates are only for a limited time
Even if the rate looks high, it returns to the standard rate once the promotional period ends. It is not uncommon for the rate to drop significantly at renewal.
High interest rates may come with a high minimum deposit
Many plans come with conditions such as "high interest rate = from RM50,000 or more." It is important to compare based on the amount you can actually deposit.
Money you may need to use partway through is not suited for FD
If you put money into an FD that you may need soon — such as tuition fees, rent, visa renewal costs, or emergency return travel expenses — you will lose the interest if you cancel early.
Risk of losses due to exchange rates when converting back to yen
Even if you earn interest through an FD, converting to yen during a period of yen appreciation may reduce the yen-equivalent amount. If you plan to use the funds in Japanese yen, you also need to factor in exchange rates.
For those planning to return to Japan, the remittance route is also important
Confirm in advance that you have a reliable route for converting RM to Japanese yen and sending it after returning to Japan. The ease of international transfers varies by bank.
By purpose
DepositRecommended by purpose
| Purpose | Recommended bank | Reason |
|---|---|---|
| Want to deposit part of living expenses | Maybank / CIMB | Convenient app and ATM for easy deposits and withdrawals |
| Temporarily hold funds for tuition fees | Maybank / CIMB / UOB | Prioritizing ease of withdrawal and reliability |
| Want to manage a lump sum of RM | UOB / HSBC / SC | Strong for large deposits and foreign currencies |
| Want to hold funds in USD or other foreign currencies | HSBC / SC / UOB | Comprehensive support for foreign currency accounts |
| Worried about English / want to consult in Japanese | Public Bank | Some branches may offer Japanese language support |
| Want to manage alongside a corporate account | RHB / UOB / CIMB | Compatible with business use |
Education relocation
For education relocation families,How much should you deposit?
Education relocation families often have a lot of money they "may need to use soon," making it risky to put the entire amount into an FD.
⚠️ Examples of money that should not go into an FD
Tuition fees (paid each semester) · rent (monthly) · visa renewal costs · living expenses · emergency return travel expenses
Since it is hard to know when these will be needed, it is safer to keep them in a regular savings account where you can withdraw immediately.
Tuition fees (paid each semester) · rent (monthly) · visa renewal costs · living expenses · emergency return travel expenses
Since it is hard to know when these will be needed, it is safer to keep them in a regular savings account where you can withdraw immediately.
It is practical for education relocation families to put only "surplus funds that won't be needed for the foreseeable future" into an FD.
Simulation
DepositSimulation
This is an estimated interest image for depositing RM50,000 for 1 year (rough estimate not accounting for taxes or other 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 |
※ This is a rough estimate. The actual amount received will vary depending on taxes, promotional conditions, early cancellation, 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 | The yen-equivalent amount changes with RM appreciation or yen appreciation. Pay particular attention if you plan to use the funds in Japanese yen. |
| Early cancellation | Cancelling before maturity may significantly reduce interest earned, or result in no interest at all. |
| End of promotional period | The interest rate may drop at renewal. Prior confirmation is required. |
| Account maintenance | Managing the account remotely after returning to Japan can become cumbersome. |
| Switching banks | Moving to a bank with a higher interest rate takes effort. Cancellation and re-deposit procedures are required. |
| Deposit protection limit | Check whether the product is covered by PIDM and confirm the limit (RM250,000). Some products are not covered. |
Foreign currency deposits
Should you also considerforeign currency deposits?
For those who want to hold assets in USD, a foreign currency account is one option. However, there are some points to be aware of.
An option for those who want to hold funds in USD
HSBC, Standard Chartered, and UOB are strong in foreign currency accounts. It is also possible to hold assets in USD and convert to RM as needed.
Foreign exchange fees apply
A foreign exchange fee is charged every time you convert RM to USD or USD to RM. If you convert frequently, costs can add up.
Think separately about the currency you "use" and the currency you "deposit"
For education relocation families, separating currencies — RM for daily life, yen for remittances to Japan, and USD for surplus funds — can help reduce confusion. For funds you plan to use in Japanese yen, be mindful of the timing of your currency conversions.
FAQ
Frequently askedFAQ
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 standard process is to first open a savings account and then apply for an FD through that account.
Can I open an FD without a regular account?
In most cases, opening a savings account is a prerequisite. Opening an FD on its own is difficult in the majority of cases. 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 start with around RM 1,000. Plans with promotional interest rates may have a higher minimum deposit (RM 5,000 to RM 50,000 or more). Please check before applying.
Is the interest earned on an FD subject to tax?
In Malaysia, interest earned on personal FDs is generally tax-exempt (as of May 2026). However, as tax regulations may change in the future, please check the latest information with a tax professional or your bank. For tax treatment in Japan, please consult a Japanese tax accountant.
Can I make an early withdrawal?
Yes, but withdrawing before maturity may significantly reduce the interest earned, or result in no interest at all. We recommend not putting money that you may need to access quickly into an FD, so you are prepared for situations where funds are unexpectedly needed.
Can I use money sent from Wise to open an FD?
After transferring money from Wise to your local bank account, you can apply for an FD using the balance in that account. However, it is not possible to open an FD directly from Wise. The process goes: deposit into your savings account → then move funds into an FD.
Can I maintain my FD after returning to Japan?
This depends on the bank. If the account can be managed via internet banking, remote maintenance is possible, but there is a risk of the account being frozen due to extended inactivity or an address change. We recommend confirming with your bank before returning to Japan and setting up online account management in advance.
With the yen weak now, should I save in RM?
Currency forecasts are difficult even for experts. Saving in RM allows you to earn interest, but if the yen strengthens in the future, the yen-equivalent value of your savings may decrease. It is advisable to separate funds you plan to use in Japanese yen from funds you plan to use in Malaysia, and to avoid holding the former in RM for extended periods.
Summary
Summary |Separate your everyday account from your savings account
When saving in Malaysia,do not decide based on interest rate aloneis key.
Basic approach to depositing
- ✓Keep living expenses in a regular savings account(in a state where you can withdraw at any time)
- ✓Put funds you won't use immediately into an FD(check the interest rate, term, and early withdrawal conditions)
- ✓For large sums, also check foreign currency accounts and Priority banking requirements
- ✓If you plan to return to Japan, also consider exchange rates and remittance routes
In conclusion, the clearest way to organise your finances is to separate your "everyday account" from your "savings account".
Account opening requirements, interest rates, and other conditions 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 be sure to confirm directly with each bank before making any decisions.
