Question regarding Fixed Deposit

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I am slightly confused as to how FD works. Based on this link I would get an interest rate of 3.0% after a 1 month tenure.

If I were to put a figure of RM10k for a 1 month tenure, at the end of the month I would receive the interest of RM300.

My question is if this is the case, why would anyone want to put their money for a longer tenure when the return is lesser than a 1 month tenure combined. For example, if a 12 month tenure is 3.15%, after 12 months I would only receive an interest of RM315. Wouldn't I be getting more out from a 1 month tenure after 12 months (300*12)?

Is my understanding of FD correct?

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zumberg

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Posted: 6 years ago
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