Is fixed deposit interest taxable in Malaysia?

Interest earned on deposits with licensed banks and finance companies is tax-exempt for resident individuals, so you keep the full amount shown.

Should I pick a long or short tenure?

Longer tenures often carry slightly higher rates but lock up your money for longer. Many savers ladder several FDs across different tenures so some matures regularly while still earning competitive rates.

What happens if I withdraw before maturity?

Early withdrawal usually means you forfeit some or all of the interest for that placement, depending on the bank's terms. The principal is protected and insured by PIDM up to RM250,000 per depositor per bank.

Malaysia fixed deposit calculator

FD interest, maturity value, and auto-renewal compounding.

Work out the interest and maturity value of a Malaysian fixed deposit (FD). For a single placement, banks pay simple interest pro-rated to the tenure. If you let the FD auto-renew and roll the interest back in, the return compounds — this calculator shows both so you can see the difference. FD interest from licensed banks is tax-exempt for individuals.

How the fixed deposit calculator works

Simple interest is your principal multiplied by the annual rate and the fraction of a year you hold the deposit: principal × rate × (months ÷ 12).

The maturity value is principal plus that interest, paid out when the FD matures.

If you auto-renew each month, interest is added to the principal and earns further interest — the compounded maturity value is principal × (1 + rate ÷ 12)^months.

The longer the tenure and the higher the rate, the bigger the gap between simple and compounded returns.

Fixed deposit formulas

Simple maturity = P × (1 + r × months ÷ 12).

Compounded maturity = P × (1 + r ÷ 12)^months, where P = principal, r = annual rate (÷100).

Worked examples

RM10,000 at 3.5% p.a. for 12 months

Principal: RM10,000
Rate: 3.5% p.a.
Tenure: 12 months

Result: Simple interest of RM350 → RM10,350 at maturity. With monthly auto-renewal it compounds to about RM10,355.67 — roughly RM5.67 extra.

Frequently asked questions

Is fixed deposit interest taxable in Malaysia?: Interest earned on deposits with licensed banks and finance companies is tax-exempt for resident individuals, so you keep the full amount shown.
Should I pick a long or short tenure?: Longer tenures often carry slightly higher rates but lock up your money for longer. Many savers ladder several FDs across different tenures so some matures regularly while still earning competitive rates.
What happens if I withdraw before maturity?: Early withdrawal usually means you forfeit some or all of the interest for that placement, depending on the bank's terms. The principal is protected and insured by PIDM up to RM250,000 per depositor per bank.