GoBear is now part of Finder

Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our content.

Building a Nest Egg: Senior Citizen & Junior Fixed Deposits in Malaysia


A fixed deposit is a surefire way to park your savings. It allows you to build on your savings over time without withdrawing your funds until maturity.

While fixed deposits are commonly used by the regular man on the street, many banks have extended this financial instrument to both children and senior citizens in Malaysia, widening their appeal to the young and old with additional benefits suited to their respective age groups.


How do Junior and Senior Citizen Fixed Deposits Work?

There are different kinds of fixed deposits catering to different needs of individuals. The fixed deposit schemes for junior and senior citizen do not differ much from regular fixed deposit accounts.

For junior fixed deposits, this scheme allows parents or guardians to invest in fixed deposit instead of their children. The parent or guardian will handle the account until the child reaches legal age or the maturity of the plan – whichever policy is applied.

Some fixed deposit schemes for juniors provide additional protection in the form of PIDM while others are guaranteed by the government.

For senior citizens, it works the same as regular fixed deposit accounts except that some banks offer a special interest rate to senior citizens and other banking  


Common Features of Junior and Senior Fixed Deposit

The features for a junior and senior fixed deposit scheme include: 


• The minimum deposit required varies from banks. You can deposit for as low as RM1000

• The interest rates offered under these schemes are decided based on the duration of the term deposit

• Automatic renewal is available for both Junior and Senior Citizen Fixed Deposits

• Profit is calculated daily or monthly depending on the bank.


Eligibility and Requirements for Junior Fixed Deposits

The minimum age qualified to apply for a junior fixed deposit is seven years old and does not exceed 18 years old. The FD scheme is open to Malaysian residents and non-resident with a permanent address.


Eligibility and Requirements for Senior Citizen Fixed Deposits

The minimum age qualified to apply for a senior fixed deposit stands as early as 49, if not 50 years of age. Some banks may require the applicant to have an existing current and savings account with the bank they are applying to. And of course, it’s important to provide documentation to show proof of age.


Banks providing Junior Fixed Deposit

As of now, there aren’t many banks in Malaysia that offer fixed deposit schemes for children. Under these schemes, the parents or guardian handles the account of the child until the child reaches legal age. Listed below are some of the fixed deposit schemes for children and their features.


• BSN Term Deposit


This is a fixed deposit account offered by BSN for children. With this scheme, you can teach your children about healthy money saving habits as it’s open to individuals aged seven years and above.

Parents can choose to open a joint or trust account, allowing them to earn a profit up to 3.5% p.a. with a maturity period of 60 months.

Parents can withdraw the term deposit before maturity within one month from the activation date. However, you will only be entitled to receive 50% of the accrued profit based on the lowest interest rate.

The BSN Term Deposit is not insured by PIDM, but your deposit is 100% guaranteed by the government under the Bank Simpanan Nasional Act.


• Hong Leong Junior Fixed Deposit

This scheme offered by Hong Leong Bank focuses on the welfare of children below 18 years of age. In this fixed deposit, the account will be opened by the legal guardian and can deposit a minimum of RM1,000. The interest is calculated on a daily basis, eventually allowing more earnings.

Parents or legal guardians can withdraw money from the fixed deposit account and still earn a profit from the remaining balance. For example, you can make early-partial withdrawals (at any branch and in multiples of RM3,000) before maturity and still continue to earn interest based on the agreed terms.

This scheme is protected by the PIDM up to RM250,000.


Banks providing Senior Citizen Fixed Deposit

The banks that offer fixed deposit schemes for senior citizen aren’t that many as well, but it is certainly worth exploring what is on offer. Listed below are some of the fixed deposit schemes for senior citizens and their features.


• Public Bank PB Golden 50 Plus FD Account

This scheme is provided by Public Bank catering to individuals aged 50 years and above.

There are two placement options and they each come with different characteristics:

Option 1 offers a short-term tenure of between one to twelve months with a minimum placement of RM30,000 per fixed deposit receipt. The interest rate on offer is 0.1% p.a. higher than the prevailing Hong Leong Bank PLUS Fixed Deposit interest rates for the corresponding tenures. Apart from adding the interest paid out to the principal upon maturity, an option is also available to credit it into the customer’s savings or current account as maintained with the bank.

Option 2 is long-term tenure option with 15, 18, 21, 24, 36, 48 and 60 months available. Only RM10,000 per fixed deposit receipt is required to take advantage of this plan where the interest rate stands at 0.1% p.a. above the prevailing 15 months PLUS Fixed Deposit interest rates. Interest is also paid out on a monthly basis into the customer’s savings or current account as maintained with the bank.

And of course, the fixed deposit account by Public Bank is protected by PIDM.


• AmBank Am50Plus Term Deposit-i

This deposit account from AmBank is perfect for folks who want to maximize their profits with high-interest term investment. For as low as RM5,000 for an initial deposit, you can start and grow interest on your investment in the next six months up to 5 years.

As of January 2018, AmBank currently offers an effective interest rate of 3.4% p.a. for a deposit period of 48 to 60 months on your minimal deposit of RM5,000.

Other features include automatic renewal of deposit upon maturity and the convenience of having your profits credited automatically into your savings account-I or current account-i.

Your account is protected by PIDM up to RM250,000 against loss in the event of the bank’s failure.


• BSN Term Deposit Senior Citizen

When you want to enjoy your golden years with an investment in high-profit returns, BSN’s fixed deposit scheme is the way to go. Malaysians aged 50 years and above can choose to open an individual or joint account with a minimum investment of RM5,000.

If you withdraw your money within the first months or above, you will only receive 50% of the accrued interest based on the lowest interest rate. Anything lower than one month will not receive any interest rate.

BSN’s senior citizen term deposit can be used as a collateral for the selected loans for the following: personal loan, micro finance, credit card, mortgage and hire purchase.

All BSN Deposit products are guaranteed by the Malaysian government.


• MBSB Fixed Deposit for 49’ners Club

Jumpstart your retirement plans a year earlier than the rest with a fixed deposit account offered by MBSB.

You must be at least 49-years-old to join the 49ners club. The interest rate provided for this deposit scheme is one of the highest in Malaysia reaching 4.20% for a 60-month tenure. All you need is to make an initial deposit of RM1,000.

You will not receive your interest rates when you make a make a withdrawal within the first three months. Partial withdrawals is also not an option available for this fixed deposit account.  


Why choose fixed deposit scheme for children or senior citizen?

Fixed deposit schemes ensure that you save up for your children’s future or your golden age without hassle.

As a parent thinking about your children’s education, you can start putting aside money in advance for their school fees. At the very least, you’ll be able to save and account for the inflation rates over the years.

Having a senior citizen fixed deposit can offer you a financial cushion on your retirement years, without needing to be completely dependent on your EPF – allowing you to enjoy your latter years with less financial worries.


Important! Keep in mind that fixed deposit accounts that have been dormant for seven years will be closed in accordance to the Unclaimed Money Act 1965.






More guides on Finder

Ask an Expert

You are about to post a question on finder.com:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder.com provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

By submitting your comment or question, you agree to our Privacy Policy and Terms.

Questions and responses on finder.com are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.
Go to site