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Home » Gold Vs Fixed Deposits: Which Is Better?

Are you looking to put your savings or disposable cash somewhere it can grow?

Gold and fixed deposits (FD) are both considered excellent, low-risk investments.


Here, we explore the main differences between a typical gold account and a fixed deposit.

Take a quick look at the chart below:


Gold Vs Fixed Deposit infographic


To get a better idea on whether a gold account or fixed deposit is better for you, it’s important to consider a few things:

What are my returns?

Gold returns

It’s important to know that gold prices fluctuate in the short term. In the long term, however, gold’s steady incline means you could potentially get more returns on your savings. From 2000-2019, gold has grown by an average of 8.91% annually (MYR).


gold price trend in 20 years

source: goldprice.org

Fixed Deposit Returns

FDs on the other hand, guarantee you fixed returns (hence the name). Most FD return rates range from 3% – 4% (p.a.), which is comparatively better than a regular savings account (typically less than 2% p.a.).

Banks offer a higher interest the longer you keep your savings in an FD and vice versa (lower interest rates come with shorter periods).

Some banks do offer returns of up to 5% and for shorter periods (1 month), if you have a significantly larger minimum deposit: anywhere from RM1,000 to RM10,000.

For easy comparison, here’s how much you would earn in January 2020 if you invested RM1,000 in January 2019:


Gold Vs Fixed Deposit Returns Table


Check this historical gold price chart to compare gold prices.

Potential risks

FD returns might not meet high inflation rates

The annual inflation rate in Malaysia averages around 2.4% (2014-2018). As of January 2020, inflation rates are estimated to trend at 2.10% p.a. This means that the (comparatively low) returns you get from FDs may barely keep up with inflation.

In times of high inflation rates, such as in 2017 when inflation hit a high 5.1% p.a., your savings may lose value in an FD.

Still, any returns are better than no returns and you can enjoy peace of mind knowing your returns are guaranteed.

On the flip side, gold is known to effectively hedge against inflation. When you look at gold’s average annual growth (2014-2018), you will see that it has increased in line with inflation, in the same timeframe, at an average of 5.3% a year.

Compared to FDs, gold returns are not guaranteed nor fixed, much like other asset types.

Flexibility and access

With a gold savings account, you can enter and exit whenever you want. Gold is highly liquid meaning you can sell it quickly whenever you need the cash for an emergency, bills, or sudden purchases.

As with gold, you can also access your money in an FD when you need; however, you risk losing some, if not all of your interest if you withdraw your money before the end of its tenure.

So which one should I choose?

Gold is known to increase in value in the long term. You can potentially earn more on your savings compared to an FD, but like all other asset classes, gold does not come with any guarantees.

A gold savings account is ideal if you’re looking to hold and grow your savings for more than 3-5 years.

If you’re looking to put aside some disposable money for a specific and shorter time period, then fixed deposits are for you. Sure, the extremely low returns are nothing to shout about, but it’s better than collecting dust.

FDs can pay off significantly if you have a large deposit. This which is why investors, the wealthy, and retirees choose fixed deposits as a way to guarantee interest returns on their nest egg or accumulated wealth.

Ideally, you can have both for portfolio diversification – to offset your higher-risk assets.

Get a gold savings account with no minimum deposit

Are you looking to enjoy the benefits of gold with no minimum deposits and the added safety and convenience of FDs?

Try HelloGold! Our mobile gold savings app is designed to make saving gold affordable and safe for you.

With HelloGold you enjoy:

  • FREE registration. Opening a gold savings account is 100% FREE.
  • No hefty minimum purchase (e.g. 1g) required, unlike most gold accounts. Instead, buy gold for as low as RM1!
  • Freedom to buy, save, and sell whenever you want – there is no fixed period.
  • Real 99.99% investment-grade gold. Fully insured.


It’s like having a gold savings account right in your pocket, because that’s exactly what it is.


You know what they say, belum try belum tau (don’t try-don’t know). So download the app today and join thousands of Malaysians already saving with HelloGold!



Have more questions about our gold savings account or gold in general? Feel free to reach out to us on any of our social media channels:

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LinkedIn: https://www.linkedin.com/company/hellogold/

Twitter: https://twitter.com/myhellogold


Recommended reading: 10 Reasons to Buy Gold

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