Malaysia Historical Fixed Deposit Rate versus Inflation Rate
From the chart above, it is noticeable that the Fixed Deposit rate is about 9% at year 1980.
The maximum FD rate achieved is about 11% at year 1981 but it fluctuate around 4-9% for following 20 years.
Starting from year 1999, the FD rate was only about 4% and remained low at 3.7% until year 2008.
The latest FD rate for year 2009 is about 2.5% and this illustrated that FD is expected to undergoes a decreasing trend.
Comparing the inflation rate, for the previous year, the inflation rate is usually lower than the FD rate. But at year 2008, the inflation rate is greater than the FD rate which means the value of our money is diminishing as we keep them in bank!
So, make use of your money. Spend them wisely.
Remember diversify your investment to minimize the risk and maximize the profits!
Allocate some percentage of them on high risk, high return investment and some on low risk, low return investment.
Manage your financial well and start your path to financial freedom!