Base rate (savings)
The standard account return before any promotional bonus. This is different from a lending reference rate.
In everyday terms
Read a related guideAn offer of 2% base plus 1% bonus totals 3%, if you qualify.
Banking glossary
Big banking words.
Small, clear explanations.
Understand what you are reading before you sign up. Search a term or browse by topic.
Bonus rate
An extra return available only when you meet the stated conditions.
In everyday terms
Read a related guideKeeping funds for the full tenure may be necessary to earn the bonus.
Cashback cap
The most cashback you can receive within the stated period.
In everyday terms
Read a related guide5% cashback capped at RM10 stops rewarding you after RM200 of eligible spending.
Compounding
Earning a return on earlier earnings as well as on your original money.
In everyday terms
Read a related guideIf interest stays in the account, later interest may be calculated on a slightly larger balance.
Cooling-off period
A waiting period before a banking action becomes available. Its purpose and length depend on the bank and action.
In everyday terms
Read a related guideA newly registered device may have a delay before it can authorise transfers.
Direct debit
Permission for an organisation to collect payments from your account under an agreed arrangement.
In everyday terms
Read a related guideA utility provider collects your bill. Check the amount and how to cancel the instruction.
DuitNow Transfer
A Malaysian transfer service that can use a registered identifier, such as a mobile number, to find the receiving account.
In everyday terms
Read a related guideCheck the displayed recipient name before confirming payment.
Effective interest rate
A rate intended to reflect borrowing cost more meaningfully than a flat headline rate. Check the product’s calculation and fee treatment.
In everyday terms
Read a related guideCompare total repayments and the effective rate for the same amount and tenure.
eKYC
Electronic know-your-customer: checking your identity remotely when you open or use an account.
In everyday terms
Read a related guideYou may be asked to photograph your MyKad and take a selfie in the official app.
Eligible transaction
A purchase or payment that counts under an offer’s rules.
In everyday terms
Read a related guideA promotion may exclude e-wallet top-ups or government payments.
Fixed deposit / FD-i
A deposit placed for a chosen period under agreed interest or Islamic profit terms.
In everyday terms
Read a related guideWithdrawing before maturity can reduce or remove the return. Read the product terms.
Flat interest rate
Interest calculated using the original loan amount rather than only the balance still owed.
In everyday terms
Read a related guideA flat rate and an effective rate with the same percentage do not mean the same cost.
Fresh funds
Money that meets a bank’s definition of newly brought-in funds.
In everyday terms
Read a related guideA transfer from another bank may qualify; moving money between your own accounts at the same bank may not.
Hibah
A gift a bank may choose to give. Under a Qard savings account, it is discretionary rather than a promised return.
In everyday terms
Read a related guideA past hibah payment does not mean the same amount or rate will be paid next month.
Lock-in period
A period during which withdrawing or ending a product early can affect your return or trigger a charge.
In everyday terms
Read a related guideCheck whether early access is allowed and what you would lose.
Minimum balance
The amount you must keep to meet a particular account or reward condition.
In everyday terms
Read a related guideFalling below it may affect fees or rewards, depending on the terms.
OTP
A one-time password used to confirm an action. It is a secret security code.
In everyday terms
Read a related guideNever tell a caller an OTP, even if they claim to work for your bank.
p.a. (per annum)
Per year. A rate is annual even when earnings are paid daily.
In everyday terms
Read a related guideRM1,000 at 3% p.a. earns roughly RM30 over a full year, before compounding.
PIDM
Malaysia’s deposit insurer. Eligible deposits at member banks are protected within defined limits if a member bank fails.
In everyday terms
Read a related guideProtection is generally up to RM250,000 per depositor per member bank; eligible Islamic and conventional deposits have separate limits.
Principal
The original amount deposited or borrowed, before interest, profit or fees.
In everyday terms
Read a related guideIf you borrow RM5,000, the starting principal is RM5,000.
Profit rate
The rate used to describe returns or financing costs for an Islamic banking product, subject to its contract.
In everyday terms
Read a related guideCheck whether the displayed savings profit rate is indicative, promotional or contractually agreed.
Qard
A loan contract. In a Qard-based bank deposit, you lend money to the bank and the bank must repay the principal under the account terms.
In everyday terms
Read a related guideThe bank may give discretionary hibah, but you cannot assume a fixed savings return.
Standing instruction
An instruction you set for the bank to make recurring payments.
In everyday terms
Read a related guideTransfer RM200 to your savings account on the same date each month.
Tenure
The length of a deposit or financing arrangement.
In everyday terms
Read a related guideA six-month deposit tenure and a five-year loan tenure describe different commitments.
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Definitions simplify the concepts; the exact product contract controls. PIDM definition: official deposit-protection guidance. Qard and hibah: KAF’s official explanation. Promotion examples are illustrative unless explicitly linked to an offer.