Conversation Guide Structured Investment  ·  ESG Range Accrual  ·  5–6 Years
Structured Investment · ESG Range Accrual

The smart fixed deposit.

Principal-protected deposit that pays up to 5.00% p.a. when KLIBOR stays within a defined range — a higher-yielding alternative to FD, with capital safety at maturity.

Underlying KLIBOR 3M Tenor 5–6 years Minimum RM 50,000
Coupon
5.00%
p.a. when KLIBOR in range
Principal
Protected
At maturity or call
Tenor
5–6 yr
Callable by issuer
Minimum
RM 50K
Accredited investors
Section01What is KLIBOR

The temperature of Malaysia's banking system.

KLIBOR — the Kuala Lumpur Interbank Offered Rate — is the rate at which Malaysian banks lend to each other for short-term loans. Like weather, it has a normal range. It has stayed within a comfortable range for over a decade.

Current KLIBOR is at 3.49% — well within normal levels.

KLIBOR safe zoneCoupon paid when KLIBOR sits below 3.80%
5.0% 4.0% 3.8% 3.0% 2.0% 1.0% 0% BARRIER SAFE ZONE COUPON PAUSED NOW: 3.49% — In Range
Section02Mechanics

How this product works.

01Invest

Lock in the deposit.

Invest RM 50,000 or more for a tenor of 5–6 years.

02Observe

Daily KLIBOR check.

Every single day, the system checks: is KLIBOR between 0% and 3.80%?

03Accrue

Pay-per-day in range.

Days when KLIBOR is in range → you earn 5.00% p.a. for that day. Days when KLIBOR is outside → you earn 0% for that day only.

04Payout

Quarterly payment.

Every 3 months, you receive the accrued interest payment directly.

05Maturity

Principal returned.

At maturity, or if the issuer calls early, you receive your full principal back regardless of how often KLIBOR went out of range.

Section03Real numbers

Your quarterly payment, four scenarios.

Based on RM 100,000 investment, per quarter (90 days).

ScenarioDays in rangeQuarterly paymentAnnualised
All days in range90 / 90RM 1,2335.00%
Most days in range80 / 90RM 1,0964.44%
Half days in range45 / 90RM 6162.50%
No days in range0 / 90RM 00.00%
Reference: current FD rate—~RM 775–875~3.10–3.50%

Key insight. KLIBOR has only exceeded 3.80% briefly in history. Even in the "half days" scenario you still earn 2.50% — similar to lower-end FD rates, with the upside potential of 5.00%.

Section04Why staying in range is likely

KLIBOR's history says: range-bound.

Over the past decade, KLIBOR has spent very little time above 3.80%. Even through the 2018 hiking cycle and 2022 post-pandemic adjustments, the rate held in a narrow band.

KLIBOR 3M historyHas never stayed above 3.80% for any sustained period
4.5% 4.0% 3.8% 3.5% 3.0% 2.5% 2.0% 3.8% NOW 3.49% '15 '16 '17 '18 '19 '20 '21 '22 '23 '24 '25 '26
Section05Versus FD

Why not just hold a fixed deposit?

Fixed Deposit · 12 months
3.10–3.50%

Guaranteed fixed rate; PIDM-protected up to RM 250,000. Renewable annually but no upside.

vs
Range Accrual · 5–6 years
up to 5.00%

Higher potential rate, paid on days KLIBOR stays in range. Principal protected at maturity or call. Worst case 0% — principal remains intact.

Fixed DepositRange Accrual
Annual rate3.10–3.50%Up to 5.00%
PrincipalPIDM protectedIssuer protected
Tenor1 year, renewable5–6 years
Early exitBreakable (lose interest)Unwinding cost
UpsideFixed, predictableHigher potential
Worst caseEarn guaranteed rate0% return (principal safe)
Section06Risks

What can go wrong — and what can't.

Capital is safe

Worst case is 0% interest.Even if KLIBOR is outside range every single day, you receive 0% for those days but your full principal returns at maturity. You never lose capital.
Principal protection.Provided by the issuing bank at maturity or call — contractual.
Early call generally positive.If the issuer calls early, full principal plus earned interest to date is paid.

What to be aware of

KLIBOR spike.If KLIBOR rises above 3.80%, coupon drops to 0% for those days. Principal unaffected.
5–6 year lock-up.Designed to be held to maturity. Early exit involves unwinding costs.
Not PIDM protected.Backed by issuer credit, not government guarantee.
Long horizon.Only invest funds you can set aside for the full tenor.
Section07Suitability

Who this is for.

Good fit

Conservative investors.Wanting better-than-FD returns without taking stock market risk.
Retirees.Seeking reliable quarterly income with capital safety at maturity.
FD-heavy clients.Looking to diversify into higher-yielding, principal-safe products.

Not suitable

Liquidity-sensitive.Clients who may need access to funds within the next 5 years.
PIDM-mandated.Investors who require government-insured guarantee.
Growth-seekers.Investors targeting double-digit returns and willing to take principal risk.
Section08Questions

Common questions answered.

What if KLIBOR goes above 3.80%?
Your coupon reduces proportionally for those days — you earn 0% only on days KLIBOR is outside the range. Principal is never at risk. Historically, KLIBOR has spent very little time above 3.80%.
Can I get my money back early?
Early exit is possible but comes with unwinding costs. The product is designed to be held for the full 5–6 year tenor. Only invest funds you will not need during this period.
Is my principal really safe?
Yes. Full principal is protected at maturity or if the issuer calls early. The only risk is earning lower interest (even 0%) — the amount invested is not lost.
How is this different from FD?
FD gives a guaranteed fixed rate. Range Accrual gives a higher potential rate (up to 5.00%) conditional on KLIBOR staying in range. In exchange for accepting that condition, you earn significantly more on the days it holds.
What does "ESG Callable" mean?
"ESG" means the product is structured with Environmental, Social and Governance principles. "Callable" means the issuing bank has the option to redeem before final maturity. If called, full principal plus earned interest is paid.

For general information and educational purposes only. Not investment advice. Principal protection is subject to the creditworthiness of the issuing institution. Not guaranteed by PIDM. Past performance not indicative of future results. KLIBOR data and returns shown are indicative only. Please consult your relationship manager for full details.

Conversation GuideStructured Investment · ESG Range Accrual · 5–6 Years
Structured Investment · ESG Range Accrual

The smart fixed deposit.

Principal-protected deposit paying up to 5.00% p.a. when KLIBOR stays within 0%–3.80%. Current KLIBOR is 3.49% — in range.

Coupon
5.00%
p.a. when KLIBOR in range
Range
0–3.80%
Observed daily
Tenor
5–6 yr
Callable by issuer
Principal
Protected
At maturity or call

01.What it is

  • Principal-protected deposit. 100% returned at maturity or call.
  • Pay-per-day-in-range. Earn 5.00% p.a. for each day KLIBOR is between 0% and 3.80%. 0% for days outside.
  • Quarterly payout. Accrued interest paid every 3 months.
  • Callable. Issuer may redeem early — generally a positive outcome.
  • ESG-structured. Tenor 5–6 years. Minimum RM 50,000.

02.How it works

Daily mechanism
KLIBOR between 0% – 3.80%Earn 5.00% p.a. for that day
KLIBOR above 3.80%Earn 0% for that day only
Every quarterAccrued interest paid out
At maturity or callFull principal returned

03.Four scenarios · RM 100,000 · per quarter

ScenarioDays in rangeQuarterlyAnnualised
All days in range90 / 90RM 1,2335.00%
Most days in range80 / 90RM 1,0964.44%
Half days in range45 / 90RM 6162.50%
No days in range0 / 90RM 00.00%
Reference: current FD—~RM 775–875~3.10–3.50%

04.Why KLIBOR is likely to stay in range

  • 11-year history. KLIBOR has never stayed above 3.80% for any sustained period.
  • Tightly managed. KLIBOR closely tracks BNM's OPR; BNM manages it within a target band.
  • Current level safe. 3.49% — comfortably within range.
  • Buffer below 3.80%. Even peak years (2018) only briefly approached the barrier.

05.vs Fixed Deposit · 5–6 years

Fixed DepositRange Accrual
Annual rate3.10–3.50%Up to 5.00%
PrincipalPIDM protectedIssuer protected
Tenor1 year, renewable5–6 years
Worst caseEarn guaranteed rate0% return (principal safe)
Best caseFixed rate5.00% p.a.
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06.Risks & trade-offs

  • KLIBOR spike. If above 3.80%, coupon drops proportionally for those days. Principal unaffected.
  • 5–6 year lock-up. Designed to be held to maturity. Early exit involves unwinding costs.
  • Not PIDM. Backed by issuer credit, not government guarantee.
  • Issuer credit. Principal safety depends on the issuing institution.
  • Worst case 0% interest. Even then, full principal is returned at maturity.

07.Who this is for

Good fit

  • Conservative investors. Want better-than-FD without stock market risk.
  • Retirees. Reliable quarterly income with capital safety.
  • FD-heavy clients. Diversify into higher-yielding principal-safe products.

Not suitable

  • Need liquidity within 5 years.
  • Require government-insured guarantee.
  • Targeting double-digit returns.
  • Willing to take principal risk for higher yield.

08.Common questions

  • What if KLIBOR goes above 3.80%? 0% for those days only. Principal unaffected.
  • Can I exit early? Possible with unwinding cost; designed to hold to maturity.
  • Is principal really safe? Yes — full principal returned at maturity or call.
  • Difference from FD? FD = guaranteed lower rate. Range Accrual = conditional higher rate (up to 5.00%) with same capital safety.
  • What is "ESG Callable"? Structured under ESG framework; issuer may redeem early — if called, full principal + interest paid.
For general information and educational purposes only. Not investment advice. Principal protection is subject to the creditworthiness of the issuing institution and is not guaranteed by PIDM. Past performance not indicative of future results. KLIBOR data and returns shown are indicative. Please consult your relationship manager for full details.
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