Why you should not keep money in bank even economic crisis

Are you keeping 100% of your cash in FD? No

How about 80% of your cash in FD? No

Ok, How about 50% of your cash in FD or saving account?

I think most probably you’ll say yes….
According to research most asian will keep their cash 50% or more in bank to earn interest, especially Chinese… reason ??? Chinese most kiasi and kiasu.

Most of the answer I heard:
1.) FD give me highest interest than anything else..
2.) Bank is the most safety place to keep cash
3.) I don’t know where to put my cash except of bank
4.) No knowledge of other method make interest
5.) Blah blah blah…..

During economic crisis, most people sell all of their share, bond, unit trust, property, ….. and put all their cash into bank FD. Is that correct way ? HELL NO, YOU’RE SO DAMN WRONG!!!!!

When economic crisis and market turn bad, GDP drop, company start fired people, government decrease FD rate. WHY ?? Because government want you withdraw $ put into share market, bond, unit trust but you’re doing opposite way. Let’s look at latest FD rate of major bank.
The Highest what I can find 2.5% Per annual 

Can you imaging you keep RM10,000 in FD you’re only making RM250 a year, monthly RM20.83. ARE YOU KIDDING ?? NOOOO, use your calculator do the math.
So, what should I do? Are you telling withdraw all my cash and dump into share market, bond, unit trust?
I think depend on what kind of risk, age, and personality you are. I’ll always split to 3 category:

High Risk: Keep your cash in standby mode for share market, once see good counter with stable earning, good pass record if it happen go down to certain level, you should go in, example: Maybank drop to 3.x, genting at 3.x. Look at how much they’re today and compare if your cash park in either one of them.

Moderate: REIT, which always have professional help you manage property and earn rental for you. Constantly per annual income around 8% ~ 10%+ compare to FD 2.5% how much different?

Low Risk: As I mention before in my previous pos, GOLD always good for anti-inflation, economic crisis…
Use your common sense and logic, use your cash wisely…

Banking Institution	Min. Age	Senior Citizen Account	Min. Deposit		Min. Tenure	Rates % (p.a.)
					(Mths)	Tenure (Mths)
			(RM)
			1 Mth	>1 Mth		1	3	6	9	12
CIMB Bank Berhad
Fixed Deposit	18	No	5000	1000	1	2	2	2	2	2.5
Citibank Berhad
Time Deposit		No	5000	1000	1	2	2	2	2	2.5
Hong Leong Bank Berhad
Time Deposit Tier 1	18	No	5000	1000	1	2	2	2	2	2.5
Malayan Banking Berhad
Flexi Fixed Deposit	18	No	5000	1000	1	2	2.1	2	2.1	2.5
Public Bank Berhad
Fixed Deposit Plus	18	No	5000	500	1	2	2.1	2	2.1	2.5