Fixed deposits need rate hike

THE current turbulent climate necessitates Prime Minister Tan Sri Muhyiddin Yassin to urgently demand an increase in fixed deposit interest rate for elderly savers with deposits of RM500,000 and below. Without this, our elderly middle class will shrink into poverty as insurance premiums skyrocket.

Escalating inflation has rendered RM500,000 savings small today! A budget of RM2,500 monthly or RM30,000 annually is merely adequate for an elderly person to cover costs of food, house, utility, maintenance, healthcare, communication, transport and some domestic help. They need about 6% return on a principle of RM500,000 to yield RM30,000 annually.