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FAQs
Please click to expand list of Frequently Asked Questions:
Basics of Banking
Credit Cards
Fraud and Scams
Loans and Lending
Savings And Deposits
How To Protect Your ATM Cards
- Why is my card being rejected by the machine?
Your card may be rejected by ATM due to the following reasons:
- The condition of the card i.e. card is either broken, bent or magnetic stripe/computer chip is damaged or the encoded data is erased.
- The machine is faulty.
- The customer's account is tagged.
- Account not authorized.
- Transaction not authorized.
- Card not activated/ not readable.
- PIN is incorrect.
Please call your bank's branch or ATM Centre where appropriate for further advice.
- Why is my card being retained by the ATM?
Your card may be retained by ATM due to the following reasons:
- Made unsuccessful attempts to key in the PIN
- Did not remove card within stipulated time frame after it is ejected
- The card has been reported lost or stolen
- The account is closed.
Please call your bank's branch or ATM Centre where appropriate for further advice.
- Should I inform the bank if I change my address?
You could go to your bank’s branch to fill up a form or write the letter to the bank's branch or ATM Centre where appropriate. It is important for customer to update their addresses and contact telephone numbers.
- If I apply for an ATM card, can I direct someone to collect the PIN on my behalf?
No, for security reasons, the banks do not allow a third party to collect the PIN even with a letter of authorization. The genuine cardholder must collect the PIN himself.
- I have discovered that some money is missing from my account and I did not withdraw it. How do I go about reporting such cases?
First and foremost, you have to report the unauthorized withdrawals at any of your bank's branches. Please bring along your savings passbook (if any) and you are to complete a report form. You are also advised to make a police report on your case. Upon completion, the branch will direct the case to your bank’s branch or ATM Centre where appropriate for further investigation. You will be duly informed on the outcome of the findings.
However, if you are dissatisfied with the findings and exhausted all available means to settle with the bank concerned, you may refer your claim to the Financial Mediation Bureau within six months after the bank has conveyed its final decision on your case.
- Can I use my ATM card overseas?
Yes. If your ATM card bears the logo of VISA PLUS, VISA Interlink, MasterCard Cirrus or Maestro, you will be able to access your account via ATM worldwide or make a payment of purchases at merchant outlets.
There will be a charge levied on the transaction. Cardholders are advised to check with their banks for any limitation on the use of ATM card overseas.
Please check with your bank for details.
- What should I do if my card is retained by the ATM?
- If retained at ATM located at your bank branches. The card can be collected at the branch during office hours.
- If retained at the off-bank ATM. The card will be retrieved and sent to your home branch for collection.
- If retained at MEPS ATM *. The card will be retrieved and sent to your bank's branch for collection.
Please call your bank's branch or ATM Centre where appropriate for further advice.
* Only applicable to banks with shared network.
- Will I be charged if I perform a transaction at MEPS ATM?
- You will be charged RM1.00 for every successful cash withdrawal performed at MEPS ATM.
Reduction in Credit Card Interest Rates
- How will I as a customer benefit by lower interest rates cuts?
- You will have more savings.
- You will be able to commit to the monthly minimum payment on or before the due date.
- What is the tiered interest rate structure?
|
I |
15% |
13.5% |
1.5% |
|
II |
17% |
16% |
1% |
|
III |
18% |
17.5% |
0.5% |
| Minimum of RM10 or 1% of the total outstanding balance subject to a maximum of RM100 |
Minimum amount of RM5 or 1% total outstanding balance subject to a maximum of RM75 |
- How does the tiered rate affect me?
- Moving up from tier III to II and subsequently to tier I will eventually reduce the annual interests charged.
- This means a migration from tier III to tier I can see your savings of four percent per annum that otherwise will be charged against your credit card debt.
- What kind of savings can I enjoy if I am a good paymaster?
- It is not hard to lower your interest rates payments. For example, if you consistently pay the minimum amount consistently for 12 consecutive months, you are considered a good pay master and enjoy a low 13.5 percent per annum interest.
- If you manage to pay minimum payment for at least 10 months out of a 12-month cycle, you will enjoy 16 percent interest per annum.
- Please note that credit card interest outside Malaysia is in the 18 – 42 percent per annum range.
- When will the lowered tiered rates come into effect?
- The rates will be in effect beginning late March 2009
- Will it put more money in my pocket?
- Yes certainly. By moving up to tier I, it means you save on the interest charges and subsequently you will have additional money to spend or save.
- Will my bank help me find a solution if I am unable to repay my credit card debt?
- It depends on your current situation - if it is proven you are not able to make the repayment, please contact your bank.
- Who else can I turn to for assistance if I am unable to make payment?
- You may seek Agensi Kaunseling dan Pengurusan Kredit (AKPK)’s assistance if you have more than one credit card.
- AKPK is a Bank Negara agency tasked with assisting people with personal debt issues.
- How do I better manage my credit card use?
- Please note that a credit card is merely a deferred payment tool for goods and services purchased.
- The outstanding balance on your credit card is correspondingly reduced against your credit limit; the quicker you repay the amount used, the better your credit standing.
- To avoid incremental interest rate increases, please pay the principal sum used promptly.
- Financial discipline is key to good credit card use practice.
Protecting Your Credit Cards
- What should I do if my credit cards are lost or stolen?
Phone your credit Card Center and report stolen/lost card immediately. Your monthly billing statement will list the phone number for reporting lost cards. Be sure to get the name of the person you talked to. The Card Center will cancel your card so no unauthorized charges can be made on it.
Some Card Centers may require you to make a written confirmation and/or police report of the stolen/lost card. Written confirmation should include your name, contact number, address, account number, the date you believe the card was stolen/lost, and the name of the person you spoke to when you reported the stolen/lost card to the Card Centers. Attach the necessary documents to be forwarded to the Card Centers.
- What do I do if I disagree with a charge on my credit card statement?
You should call your Card Center to seek further clarification on your statement.
You can raise the dispute in writing within the stipulated time/days as stated in Card Center’s Terms & Conditions to the Card Center with regards to the improper charge stating the following information:
- Your name and account number
- The amount you are disputing and information as to when it was charged and the name of the merchant
- A reason for your dispute
Card Centers are required to investigate and revert to you. Seek the Card Center’s advice on whether payment needs to be made on the disputed amount.
- Can a merchant charge me more if I use my credit card?
A merchant should not charge you more for using a credit card. If you are being charged, you may wish to contact your credit card issuer for clarification. A merchant may offer a discount to customers who pay cash.
- What is phishing and why is it dangerous?
- Phishing is an email request from a fraudster seeking your personal data including banking details.
- It is common for fraudsters to even mimic actual bank websites to trick the public into keying in their data into the false sites which can be recorded remotely and used to steal funds.
- How do I protect myself when I conduct internet banking transactions?
- Perform your online banking services at a private place (e.g at home).
- Memorize your PIN and password.
- Never let anyone know your PIN and password.
- Do not leave your transactions or account information on the computer screen unattended.
- How do I determine a genuine banking query and a fraudulent one seeking my personal details?
- Your bank will never call you and ask for your banking details over email or telephone.
- If this occurs, you can be certain that this is an attempt on stealing your details.
- Please contact your bank immediately if such an event happens.
- What is SMS banking fraud and how do I protect myself from being a victim?
- Banks will NEVER text you for your banking details under guise of wanting to update your records.
- Please do not respond to such requests – do not text back – and contact your bank immediately and report the incident.
- Can I choose to maintain my current monthly installments for BLR loans instead of my bank automatically reducing my monthly payments?
- Yes you can. All you need to do is contact your bank immediately.
- Will there be absolute savings for me with the recent BLR reductions, with no hidden cost?
- Yes, you will save on the interest portion on your loan which is now reduced in absolute terms.
- When will I get to enjoy the lower monthly reductions or shorter payment tenure?
- It is anticipated that the reduction exercise would be completed around the end of the 1st quarter of 2009 because it would involve system changes and needs to be done in a phased approach.
- What would be the best option for me? – lower monthly reductions or shortening of payment tenure?
- The option is entirely yours as either way you will save.
- If your cash position is healthy, it may be best to maintain the monthly installments and shorten payment tenure.
How to apply for a SME loan
- I hear that banks are cutting back on lending due to the slowing economic conditions. Is this true?
- No, it is not true. The funds are still available for eligible borrower.
- Why was my loans application rejected despite being transparent with all my documents?
- There are many factors that could result in this. While transparency is paramount, the business’s sustainability, cash flow, income generation and other risk factor also needs to be considered closely by prospective lenders.
- The bank has an obligation to clearly state why your loan application was rejected so that you may take appropriate steps to mitigate for these factors.
Prepayment Charges On Housing Loan
- Will the prepayment be treated as principal loan reduction or as an advance payment?
The customer will need to specify the intention of their lump sum prepayment, whether it is for principal loan reduction or advance installment.
- What is the difference between principal loan reduction and advance payment?
For principal loan reduction, the lump sum payment will be used to pay off the loan's interest charges for the month and the balance of the lump sum prepayment will be used to reduce the loan's outstanding principal. However, the customer is still required to continue with the subsequent monthly installments.
As for advance payment, the lump sum payment will be used to pay the installments in advance. No future monthly installment is required up to the number of monthly installments the advance payments have covered. There is no change in the period of the loan.
- Which type of prepayment is more beneficial, principal reduction or advance payment?
It depends on what you want, savings or convenience? For principal loan reduction, interest savings can be substantial since the lump sum prepayment reduces the principal loan amount which will reduce interest charges. This reduces either the loan period or the monthly installment amount.
On default, the bank will normally reduce the loan period and maintain the monthly installment amount. Again, you are required to continue with your installment payment the following month.
For advance payment, the customer simply enjoys the convenience of not making future monthly installments until the lump sum prepayment is exhausted. However, there will not be interest savings and the loan period and monthly installment amount remain unchanged. If interest is computed based on daily outstanding balance, there can be immediate savings on interest.
- For full prepayment of loan, banks require the customer to give one month notice. After serving the necessary notice, will I still be subjected to penalty interest?
If notice is required, there will not be penalty charges once the written notice has been served. However, it is important to understand the terms and conditions of the full prepayment clause in the loan agreement as it may differ from one bank to another.
- Why do banks charge penalty for prepayments?
This is due to the administrative and funding cost that has already been incurred by the bank to finance the loan.
- How do banks calculate penalty charges for full prepayment or early loan settlement?
Different banks use different methods. While some calculate penalty charges based on a percentage of either original loan or outstanding balance, others may impose a flat rate, usually between three to six month’s interests against the original loan amount.
Each bank has its unique loan features to provide the most attractive loan package for the customer to save interest.
- When do banks charge penalty for full prepayments or early loan settlement?
Usually, penalty charges are levied for loans which have been fully settled within two to five years from the date of the loan’s commencement. This period would however differ from bank to bank.
- What is a unit trust?
Unit trust is an investment scheme that pools money from many investors who share the same financial objectives. The fund is then managed by a group of professional managers who will invest the pooled money in a portfolio of securities such as shares, bonds and money market instruments to achieve the objectives of the funds.
- Why invest in unit trusts?
Unit trusts offer investors a simpler, more convenient, and less time-consuming method of investing on securities than trading individually. An important benefit is diversification wherein investors in unit trusts can usually access a broader range of securities than they could invest on their own. Such a diversified portfolio reduces risk should some investment drop in value and at the same time increases the chance of picking up good stocks. Investors also benefit from full-time professional management of their investments. In addition, the investment is liquid as investors can sell some or all of their investments at any time.
- Is it safe to invest in unit trusts?
All investments carry some form of risk. However, a good Fund Manager would be able to minimize the risk with sound investment techniques.
Under the unit trust regulations, all assets and the Fund are in the hands of the trustee. The trustee ensure that the Fund Manager manages the fund in accordance with the terms of the Deed. In addition, the Securities Commission closely supervises it.
- What are the legislations governing the unit trust industry?
- Securities Commission Act 1993
- Guideline on Unit Trust Funds
- What type of investor would be attracted to invest in unit trusts?
Unit trusts are tailored to meet the needs of:
- Investors seeking investments with capacity to outperform inflation and fixed interest savings over the long term by consistent income and capital growth.
- Parents seeking savings plans for children’s education.
- Self-employed or employed persons seeking assurance of financial self-dependence retirement upon.
- Pensioners seeking savings alternative to long term fixed interest investments.
- Institutions with excess fund seeking expertise to invest.
- Foreigners seeking investments in Malaysia.
- What is a “Prospectus”?
It is an official circular that describes the unit trust scheme and the management company. The purpose of a Prospectus is to assist the Unit-holder in making an “informed” decision by providing full disclosure of relevant facts and information pertaining to the scheme and its investment.
- What are the fees and charges imposed by the management company?
Fees and charges can vary from fund to fund. Management companies are allowed to charge three types of fees:
- Initial service charge - this is usually built into the fund’s selling price;
- Repurchase fee - this may be included in the fund’s buying price; and
- Management fee - this represents the management company’s fee for administering the fund and is directly charged to the fund.
- In addition, certain other expenses such as trustee fees and brokerage expenses are also borne by the fund. You may refer to the prospectus for more information on fees and charges.
- How is a unit priced?
To invest in a fund, you buy units through the management company at the prevailing selling price which is calculated daily and usually quoted in the major newspapers. The selling price is inclusive of the service charge imposed by the management company.
You can also sell your units back to the management company at the prevailing buying price at any time. The buying price is always lower than the selling price as it is the actual investment value of the unit less the service charge as mentioned above.
- What are my returns from investing in unit trusts?
A unit trust has the potential to earn higher returns for unit-holders via growth and distribution income. Growth or capital appreciation occurs if the value of the fund increases. Thus if you sell the units at a higher price than you paid for them, you realize a profit. On the other hand, if the value of the portfolio falls, the value of each unit falls too.
Whatever income that is received by the fund may be passed on to unit-holders as distribution. If the fund makes little or no profit, it may not pay any distribution. Thus, income distribution is not guaranteed.
- What are the important factors that I should consider when selecting a fund?
As an investor, you should consider the following factors:
- Investment objectives or goals.
- Investment policies.
- Size of fund and growth trends.
- Any investment restrictions.
- Potential risks.
- Types and amount of fees.
- Historical performance, particularly the distribution of income to investors and growth of assets.
- Latest investment portfolio.
- Information on Board of Directors, key management team, auditors and trustee.
- What are the different types of unit trust available in the market?
Income funds: Invest in fixed income securities and huge distribution yielding shares with a view of paying out most of the returns. Suitable for investors seeking income and some level of growth at low risks.
Capital growth funds: Invest primarily in shares with a view to maximizing capital growth over the long term (i.e. through a higher unit price). Appeal to high risk investors keen on capital accumulation.
Aggressive growth funds: Similar to capital growth funds but investment in aggressive shares that promise high returns - with higher risk. Generally suitable for high risk investors.
Balanced funds: Undertakes to achieve three objectives: income, moderate capital appreciation and capital preservation. Invest across a broad spread of assets categories including shares, fixed income securities and cash. Well-diversified and suitable for investors looking for reasonable safe investment where risk is lower and produce average returns.
Index funds: Invest in a basket of shares that tracks a selected stock market index.
Bond funds: Invest only in fixed income securities such as bonds and short term money-market instruments. All bonds are subject to interest rate risk and most to credit or default risk of the issuers.
Money market funds: Invest only in short term money market instruments such as treasury bills, negotiable certificate of deposits and bankers acceptances, with maturity of less than 90 days. Since the funds invest in money market instruments, the returns are generally more attractive compared to saving deposits.
Islamic funds: Managed according to Syariah principles; invest in shares and fixed income securities excluding “non-halal” shares and interest bearing money market instruments.
State funds: Managed by the state development corporations for investors from the respective states.
It is important that you choose the appropriate funds based on your risk profile and investment objectives.
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