Chart is really useful, in terms of comparison and presentation of numbers. From the chart of Malaysia’s fixed deposit rates (for 1-month and 12-month) versus inflation rate (or CPI, i.e. consumer price index), there are some critical findings to be shared below:
- 2008 was the historical worst year in the past 30 years, that we actually lost all our savings, as the inflation rate is higher than our fixed deposits. The loss is 1.7% when the 12-month FD rate was 3.7% and the inflation rate was 5.4%.
- In year 1998, the FD rates of 1-month & 12-month and inflation rate were quite close, we still had a return of 0.4% when we compared 12-month FD rate with inflation rate.
- We still had good return in year 1988, when the 12-month FD rate was 4.3% and the inflation rate was only 2.5%.
Therefore, what are the expectations from general public and all Malaysians? Of course, survival comes first, and get ready for the next boom in economy. Do you agree that now is still the best time to invest in mutual funds or unit trust funds? To think more positively, read on my previous post about Warehouse Sales (Fund & Share Market) and Financial Management During Economy Downturn, while you study my chart of Fixed Deposit Rate versus Inflation Rate.
If you have more opinions or require further information, feel free to email to me. All comments are welcomed.
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