ASB paid 5.20% plus a 0.55% bonus for the financial year ended 31 December 2025 — a total return of 5.75%, the same as 2024 and its best since 2018. The best 12-month fixed deposit rates in Malaysia right now sit at 3.50–4.00%. On RM50,000, that gap translates to roughly RM875–1,125 more per year in ASB.
If you are Bumiputera and choosing between ASB and an FD, the numbers favour ASB. But the numbers are not the whole story. ASB dividends can change every year. FD rates are locked the moment you sign. One gives you a better expected return; the other gives you a guarantee.
This guide breaks down both products with real figures, a worked example over five years, and a clear verdict on when each one makes sense.
What Is ASB
ASB (Amanah Saham Bumiputera) is a fixed-price unit trust fund managed by ASNB (Amanah Saham Nasional Berhad), a subsidiary of PNB (Permodalan Nasional Berhad). PNB is one of Malaysia's largest government-linked investment companies, managing hundreds of billions of ringgit in assets across equities, fixed income, and property.
Key facts:
- Eligibility: Bumiputera Malaysians only (Malay, Orang Asli, indigenous communities of Sabah and Sarawak)
- Unit price: Fixed at RM1.00 — your capital does not fluctuate
- Returns: Annual dividend declared by PNB, in the 4.25–7.75% range over the last eleven financial years (2015–2025)
- Maximum holding: RM300,000 per individual (raised from RM200,000 with effect from 2023)
- Fees: Zero sales charge, zero management fee visible to investors, zero redemption fee
- Tax: Dividends are fully exempt from income tax for individuals
- Liquidity: Withdraw anytime via myASNB app or ASNB branches — no lock-in, no penalty
- Insurance: Not covered by PIDM
For a deeper look at all ASNB funds including ASB 2, ASM, ASM 2 Wawasan and ASM 3, read the full ASNB guide.
What Is a Fixed Deposit
A fixed deposit (FD) is a savings product offered by licensed Malaysian banks. You place a lump sum for a fixed period — typically 1, 3, 6, or 12 months — and receive a guaranteed interest rate in return.
Key facts:
- Eligibility: Anyone — Malaysian or foreign, Bumiputera or non-Bumiputera
- Returns: Guaranteed rate locked at placement — currently 2.60–3.30% (standard) or 3.50–4.00% (promotional)
- Maximum holding: No cap
- Fees: None (some banks charge for early withdrawal via reduced interest)
- Tax: Interest income is exempt from income tax for Malaysian resident individuals
- Liquidity: Locked until maturity — early withdrawal typically forfeits some or all accrued interest
- Insurance: PIDM-insured up to RM250,000 per depositor per member bank
For current promotional rates and a bank-by-bank comparison, check the FD rates guide.
ASB Dividend History — 2015 to 2025
| Year | Regular Distribution | Bonus | Total Return |
|---|---|---|---|
| 2025 | 5.20% | 0.55% | 5.75% |
| 2024 | 5.50% | 0.25% | 5.75% |
| 2023 | 4.25% | 1.00% | 5.25% |
| 2022 | 3.35% | 1.25% | 4.60% |
| 2021 | 4.25% | 0.75% | 5.00% |
| 2020 | 3.50% | 0.75% | 4.25% |
| 2019 | 5.00% | 0.50% | 5.50% |
| 2018 | 6.50% | 0.50% | 7.00% |
| 2017 | 7.00% | 0.25% | 7.25% |
| 2016 | 6.75% | 0.50% | 7.25% |
| 2015 | 7.25% | 0.50% | 7.75% |
Source: PNB/ASNB income distribution announcement for each financial year, plus the ASB fund page for the 2023 and 2025 component splits. Some years also carried an extra that applied only to a limited number of units and is not in the totals above — a 1.00% PNB anniversary bonus on balances up to 10,000 units in 2017, a 0.75% Ehsan payment in 2020 and a 0.50% Bonus Tambahan in 2022, both on the first 30,000 units.
ASB paid 7.00% or better from 2015 to 2018, fell to a low of 4.25% in 2020, and has recovered since — 5.75% in both 2024 and 2025, its best since 2018. Even at that 2020 low, ASB beat its own benchmark (the Maybank 12-month fixed deposit rate) by 2.40 percentage points.
Important
ASB declares in December, before its 31 December year-end — not in February. PNB announced the 2025 rate on 19 December 2025. If you are checking in February the way you would for EPF, you will be reading a figure that is already a year old. The next declaration, for 2026, is due around December 2026.
Current FD Rates — Best Available (April 2026)
| Bank | 12-Month Rate | 6-Month Rate | Notes |
|---|---|---|---|
| Alliance Bank | ~3.85% | ~3.60% | Promotional, fresh funds |
| Hong Leong Bank | ~3.75% | ~3.55% | Digital placement |
| RHB Bank | ~3.70% | ~3.50% | Promotional, new-to-bank |
| CIMB | ~3.55% | ~3.35% | e-FD rate |
| Maybank | ~3.30% | ~3.10% | Standard board rate |
FD rates change frequently based on Bank Negara's OPR and individual bank campaigns. Check each bank's website or app for current rates before placing funds. Rates shown are approximate as of early 2026.
Digital banks are left out of the table above because what they publish is a savings rate, not a fixed deposit board rate. GX Bank pays 2.00% p.a. on its main account and 3.70% p.a. on a 6-month Bonus Pocket, capped at RM12,500 per pocket. Boost Bank pays up to 3% p.a. on Savings Jars and up to 4% p.a. on Special Jars earned through partner spending. Both figures were verified against each bank's own site on 29 July 2026.
The best you can consistently get from an FD is roughly 3.50–4.00% — and that requires chasing promotional rates, placing fresh funds, and often committing to a 12-month lock-in. Standard board rates at major banks sit closer to 3.00–3.30%.
Head-to-Head Comparison
| Feature | ASB | Fixed Deposit |
|---|---|---|
| Recent return | 5.75% (2024 and 2025) | 3.50–4.00% (best promo) |
| Return type | Variable dividend (declared annually) | Guaranteed fixed rate |
| Capital guarantee | No legal guarantee (RM1.00 NAV never broken) | Yes — principal protected |
| PIDM insurance | No | Yes — up to RM250,000 per bank |
| Liquidity | Withdraw anytime, no penalty | Early withdrawal forfeits interest |
| Tax on returns | Exempt (individual) | Exempt (individual) |
| Fees | Zero | Zero (but penalty on early exit) |
| Minimum investment | RM10 | RM1,000–5,000 (varies by bank) |
| Maximum investment | RM300,000 per person | No limit |
| Eligibility | Bumiputera only | Everyone |
| Compounding | Annual dividend reinvested as units | At maturity renewal |
| Risk level | Very low (government-linked, 36-year track record) | Zero (PIDM-insured) |
The comparison is straightforward on returns: ASB pays more. The gap has narrowed since the 7%+ years before 2019 — but at 5.75% versus 3.50–4.00% FD, ASB still leads by roughly 1.75–2.25 points.
Where FD wins is certainty. When you place RM50,000 in a 12-month FD at 3.75%, you know you will receive exactly RM1,875 in interest. No fund manager decision, no PNB board meeting, no economic event can change that number. With ASB, you are trusting that PNB will continue delivering — and they have since ASB launched on 2 January 1990 — but the rate could be 5.75% or it could be 4.25%.
Note
Both ASB dividends and FD interest are tax-exempt for Malaysian individuals. This is often confused. Some older sources claim FD interest is taxable — it was, prior to 2008. Since then, interest on deposits at licensed banks is exempt from income tax for resident individuals. ASB dividends have always been tax-exempt. Neither product has a tax advantage over the other.
Worked Example: RM50,000 Over 5 Years
Two investors. Same starting amount. One puts RM50,000 into ASB. The other places RM50,000 into a 12-month FD renewed annually. Both reinvest all returns.
ASB at 5.00% per annum (conservative — no bonus)
| Year | Opening Balance | Dividend (5.00%) | Closing Balance |
|---|---|---|---|
| 1 | RM50,000 | RM2,500 | RM52,500 |
| 2 | RM52,500 | RM2,625 | RM55,125 |
| 3 | RM55,125 | RM2,756 | RM57,881 |
| 4 | RM57,881 | RM2,894 | RM60,775 |
| 5 | RM60,775 | RM3,039 | RM63,814 |
Total after 5 years: RM63,814 — a gain of RM13,814 on a RM50,000 investment.
FD at 3.75% per annum (renewed annually)
| Year | Opening Balance | Interest (3.75%) | Closing Balance |
|---|---|---|---|
| 1 | RM50,000 | RM1,875 | RM51,875 |
| 2 | RM51,875 | RM1,945 | RM53,820 |
| 3 | RM53,820 | RM2,018 | RM55,838 |
| 4 | RM55,838 | RM2,094 | RM57,932 |
| 5 | RM57,932 | RM2,172 | RM60,104 |
Total after 5 years: RM60,104 — a gain of RM10,104 on a RM50,000 investment.
The difference
ASB earns RM3,710 more than the FD over five years on RM50,000. That is roughly RM742 per year in additional return — the cost of not using ASB if you are eligible.
Scale it up: on RM300,000 (ASB's maximum), the five-year difference at these rates grows to approximately RM22,260. That is not a rounding error. It is a secondhand Myvi.
Warning
This assumes ASB maintains a flat 5.00% for five years. In reality, the dividend changes annually. If ASB drops to 4.00% for two of those five years, the gap narrows to roughly RM1,600 over five years instead of RM3,710. The advantage is real but not guaranteed to stay at this level.
The ASB Financing Question
Some Bumiputera investors take it a step further: borrowing money from a bank specifically to invest in ASB. The idea is simple — borrow RM100,000–200,000 at a loan rate of 4.00–4.25%, invest it in ASB hoping for 5.00%+ dividend, and pocket the spread.
The math works when the spread holds. On RM100,000 borrowed at 4.25% with ASB paying 5.00%, you earn a net positive carry of roughly 0.75% — about RM750 per year. Over a 20-year loan tenure, compounding and reinvested dividends can turn that into a meaningful sum.
But the spread can close. In 2020, ASB paid 4.25% while loan rates sat at 4.00–4.50%. Some borrowers ran a near-zero or slightly negative carry that year. The loan repayment does not drop when the dividend drops. At the current 5.75% the carry is wider — roughly 1.25 to 1.75 points on a 4.00–4.50% financing rate — but 2020 is the year to plan for, not 2025.
ASB Financing can work for the right person — stable income, long time horizon, high discipline. It is not a free-money strategy, and the margin of safety has compressed significantly since the 7%+ dividend years of 2015–2018.
For the full breakdown with worked examples, risk scenarios, and eligibility criteria, read the ASB Financing guide.
When FD Actually Beats ASB
ASB's historical return advantage does not mean FD is always the wrong choice. There are specific situations where an FD is the better product:
You need a guaranteed return for a specific goal
Saving RM30,000 for a house down payment you need in 10 months? Put it in a 9-month FD. You cannot afford a dividend surprise — you need to know exactly what you will have on the date you need it. ASB's expected return is higher, but "expected" is not "guaranteed" when you have a hard deadline and a non-negotiable amount.
You have maxed out the RM300,000 ASB cap
Once your ASB balance hits RM300,000, you cannot buy more units with cash (reinvested dividends can still carry the balance higher). New savings have to go somewhere. An FD is the simplest, safest place to park surplus conservative savings above the ASB ceiling. Other options include ASB 2 (a separate RM300,000 cap), money market funds, or high-yield savings accounts — but FDs remain the most predictable.
FD promotional rates briefly exceed ASB dividend
Rare, but it happens. If a bank runs a 6-month promotional FD at 4.50% and ASB's next dividend is uncertain, the guaranteed promo rate might make sense for short-term parking — especially for money you may need within the year.
You are non-Bumiputera
ASB is not available to you. Full stop. For non-Bumiputera Malaysians, the closest comparison is between FDs and ASNB's open fixed-price funds (ASM, ASM 2 Wawasan, ASM 3), money market funds, or savings accounts with competitive rates. For a broader look at ASNB options open to all Malaysians, read the FD vs ASNB comparison.
You want PIDM protection on a large sum
PIDM insures your FD up to RM250,000 per depositor per member bank. If you spread RM500,000 across two banks, the entire amount is protected by statutory insurance. ASB has no equivalent protection — it relies on PNB's track record and government-linked status, which is strong but structurally different from a deposit insurance guarantee. For very large sums where capital preservation is the absolute priority, the PIDM guarantee matters.
Adam Tan's Verdict
I will give this to you in three scenarios, because the right answer depends on who you are.
Bumiputera with savings to invest
ASB first. Always. Fill it to the RM300,000 ceiling before putting a single ringgit into an FD for investment purposes. The return gap is real, the tax treatment is identical, the liquidity is better (no early-withdrawal penalty), and the track record since 1990 is as close to a guarantee as you get without one. Use FDs for specific short-term goals where you need a locked-in amount by a specific date.
Planning a large purchase within 12 months
FD for the portion you need on a fixed date. If you need RM40,000 for a car down payment in 8 months, do not leave it in ASB hoping for a good dividend. Lock it in a 6-month or 9-month FD at the best promotional rate you can find. The guaranteed return might be lower, but the certainty is worth more than an extra 1–1.5% when you have a hard deadline.
Non-Bumiputera
FD is your safe default, but do not stop there. Look at money market funds for better liquidity with similar returns, ASNB funds open to all Malaysians (the ASM family, at 4.75–5.00% on a fixed RM1.00 unit price) for better returns at comparable risk, or a mix of high-yield savings accounts and short-term FDs. The FD vs ASNB guide covers the full picture for non-Bumiputera investors.
The Bottom Line in One Table
| Situation | Best choice | Why |
|---|---|---|
| Bumiputera, building long-term wealth | ASB (up to RM300k) | Higher return, zero fees, no lock-in, tax-free |
| Bumiputera, ASB maxed out at RM300k | FD or ASB 2 (a further RM300k) | ASB 2 offers similar returns; FD for guaranteed needs |
| Need money on a specific date (under 12 months) | FD | Guaranteed return, no dividend risk |
| Want zero risk of capital loss | FD (PIDM insured) | Statutory guarantee up to RM250k per bank |
| Non-Bumiputera, conservative savings | FD + money market funds | ASB not available; diversify across safe options |
Frequently Asked Questions
Is ASB or FD better for emergency savings?
Neither is ideal as a standalone emergency fund. ASB has better liquidity (no penalty for withdrawal) and better returns, but dividends are annual — a mid-year withdrawal means you might miss the dividend for that portion. FDs lock your money and penalise early withdrawal. For emergency funds, a high-yield savings account with daily access is usually more practical. Once your emergency fund is set, invest surplus into ASB (if eligible) or FD based on your goals.
Can I hold both ASB and FD at the same time?
Yes, and many Malaysians do. A common setup: ASB for long-term compounding (maximise the RM300,000 ceiling), plus one or two FD placements for short-term goals with fixed deadlines. The two products serve different functions and complement each other well.
Does ASB pay dividends monthly or annually?
Annually. PNB typically announces the ASB dividend in late January or February for the previous year's performance. The dividend is credited directly to your ASB account as additional units — you do not need to do anything to receive it. There is no monthly income option for ASB.
What happens if I withdraw from ASB mid-year?
You receive the full value of your units at RM1.00 per unit with no penalty. However, you may lose the dividend entitlement for the withdrawn portion for that year, depending on the timing relative to the annual distribution. If you plan a large withdrawal, consider timing it after the dividend announcement and crediting date.
How do I open an ASB account?
Bumiputera Malaysians aged 18 and above can open an ASB account through the myASNB app or at any ASNB branch. You need your MyKad (IC). The minimum initial investment is RM10. The process is straightforward and can be completed entirely online via myASNB for most applicants.
Related Guides
- FD vs ASNB — Which Gives Better Returns in Malaysia? — broader comparison covering all ASNB funds, not just ASB
- ASNB Unit Trusts Explained — ASB, ASM & How They Work — deep dive into every ASNB fund
- ASB Financing — Is Taking a Loan to Invest Worth It? — full math on the ASB loan strategy
- Best Fixed Deposit Rates Malaysia 2026 — current FD rates across all major banks
- Best Savings Account Malaysia 2026 — high-yield savings alternatives
Every guide on money.com.my is fact-checked against primary sources (Bank Negara Malaysia, ASNB/PNB annual reports, PIDM) before publication. If you find an error, email editorial@money.com.my — corrections are published with a dated amendment note.