Last Updated on March 22, 2023 by Chin Yi Xuan

Are you looking for a better alternative to save your money other than conventional Fixed Deposits (FD)?

In this post, let’s explore KDI Save – the latest and best alternative to FD in town!

As always, if you like this post, consider subscribing to my FREE newsletter and be the first to receive updates on my content! 

[UPDATE: As of October 2022, KDI Save has raised its promotional rate from 3% to 3.5% Effective Annual Rate (EAR). Definitely the best choice to save your cash right now!]

KDI Save 3.5% EAR ratep.

What is Kenanga Digital Investing (KDI)

KDI is a new suite of services offered by Kenanga Investment Bank. There are 2 key offerings, namely:

  • KDI Invest: A new 100% AI-powered new robo-advisor that helps you invests in Exchange-Traded Funds (ETFs) based on your risk preference.
  • KDI Save: A flexible cash management fund that places your money in low-risk instruments to generate returns on-par to FD.

I’ll cover both offerings separately. In this post, let’s focus primarily on KDI Save.

RELATED: KDI Invest Review 

Highlights of KDI Save

If you are looking for a flexible alternative to FD, KDI Save is a great choice:

  • Returns: KDI Save offers a promotional return rate of 3.5% Effective Annual Rate (EAR) up to RM50k, followed by 3% (>RM50k to RM200k), and a base rate of 2.5% thereafter. Interests are paid out and compounded daily.
  • Fees: FREE – no charges on your deposits.
  • Low barrier of entry & Flexible: Low initial deposit of RM100 (min. RM10 thereafter) + No lock-in period, withdraw anytime without penalties.
  • Regulation: Kenanga Digital Investing (KDI) is a financial initiative from Kenanga Investment Bank. It is regulated by the Securities Commission Malaysia (SC).

KDI Save Highlights

How does KDI Save work?

So, how exactly is KDI Save able to deliver returns that are on-par with FD?

All of this is possible because KDI Save invests users’ money in short-term Fixed Deposits (FD) and Money Market instruments.

Essentially, Money Market Instruments are short-term debts issued by banks. This helps banks to accumulate short-term cash-pile to make up for the shortfall in their daily reserve. Doing so, banks pay out a small interest to the party that invests in their Money Market Instruments.

These instruments are relatively low-risk as they are backed by banks. Moreover, they are highly liquid with short maturity periods. Through regular redemption of matured FD and Money Market Instruments, it allows KDI Save to provide a similar rate to FDs without having to lock up users’ capital.

KDI Save Review

KDI Save Features & Returns

#1 Fixed 3.5% Effective Annual Rate (EAR)

The 3.5% EAR from KDI Save is certainly the most attractive aspect of KDI Save.

Reason being, the rate is highly competitive compared to conventional Fixed Deposits. In fact, it is (much) higher than Maybank’s 60-month FD rate!

That said, do note that the EAR is tiered, as of below:

Deposit amount Effective Annual Rate (EAR)
First RM50,000 3.5% 
> RM50k – 200k 3.0% 
> RM200k


The promotional rates are valid only for a limited period of time, though there is no mention of when it’ll end on KDI’s website. I’ve written in and confirmed that there is no specific end date for this promotion for time being.

#2 Withdraw anytime without penalty charges

Even better, with KDI Save, you have the flexibility to withdraw your money whenever you want – without any charges. This is unlike conventional FD that locks in your money, imposing penalty charges if you were to withdraw earlier.

#3 Low barrier of entry

The minimum initial deposit for KDI Save is RM100. Then, the subsequent minimum deposit is RM10.

As a whole, this made KDI Save a solid choice if you are looking to save your money at a competitive rate, without sacrificing the flexibility on when to use the money.

KDI Save Fees

Here’s another good news:

It is 100% FREE to save your money on KDI Save. Meaning, there are no management fees or sales fees that we commonly see in unit trusts.

In other words, you get the full 3.5% promotional rate return without additional cost.

KDI Regulation & Safety of funds:


When it comes to regulation, KDI is regulated by the Securities Commission Malaysia (SC). This ensures that KDI is always operating in Malaysia as per the guideline from the local authority.

Safety of Funds:

As for the safety of funds, the cash deposits from users are held by a third party (trustee), which is Pacific Trustee Berhad.

In other words, your deposits to KDI are separate from KDI’s company finances. As such, this ensures no deposits can be used for fraudulent purposes and you will always have full access and claim to them no matter what happens to KDI.

Risk + What you need to know before investing in KDI Save

In this part, let’s look at 3 things that you need to be aware of while investing your money with KDI Save:

#1 Market risk

While being a relatively stable investment, investing in Money Market Instruments via KDI Save still presents exposure to market risk.

One such risk is the fluctuation in interest rates. As an example, if Bank Negara Malaysia (BNM) increases interest rate, KDI Save is likely going to generate higher returns. On the flip side, if BNM reduces interest rate, it’ll also affect the returns as a result.

Of course, this is applicable after KDI Save’s 3.5% return rate comes to an end on 31st December 2022.

#2 Not protected by PIDM

While investing in KDI Save, it is important to remember that your fund is not protected by Perbadanan Insurans Deposit Malaysia (PIDM).

PIDM is an organization that protects deposits kept in banks and financial institutions that are a member of PIDM. Conventional bank FDs are usually protected by PIDM.

#3 Not shariah-compliant

In addition, both KDI Save & KDI Invest are not shariah compliant.

Hence, this is something that you need to be aware of prior to investing with KDI.

Eligibility + Is KDI Save for You?

KDI is open to Malaysian citizens & PR who are 18 years old and above with a Malaysian bank account.

That said, is KDI Save for you?

To answer this question, it is best to first know what KDI Save is NOT:

  • KDI Save does not invest in stocks/equities (ie. Higher risk assets). Hence, do not expect mutual fund/robo-advisors-like returns.
  • KDI Save does not guarantee returns. Even though it invests in low-risk Fixed Deposits & Money Market Instruments, returns are still subjected to market fluctuation.

Hence, in my opinion, KDI Save is perfect for:

  • People looking for a flexible alternative to FD & typical savings account for general savings
  • People looking to save for a specific goal (eg. house, car, wedding)
  • People with extra cash and want to save it for the short-term

KDI Referral Code: 101183

In collaboration with Kenanga Digital Investing, No Money Lah is bringing an exclusive deal for new users that are keen to start using KDI!

Use my dedicated KDI referral code – 101183, and you will get RM25 credited into your KDI Invest portfolio* when you successfully make a minimum deposit of RM250 on KDI Invest AND RM100 on KDI Save! Promo ends on 30/4/2023. 

*Note: RM25 credit will be made within 60 days upon successful verification & deposit.

KDI Save and KDI Invest Promo Code

Open a KDI account today!

How to open a KDI Account

Creating a KDI account is simple and straightforward:

Step 1: Search and install the KDI app via Playstore or Appstore. Alternatively, you can also install KDI Save via my referral link by clicking on the button below:

Kenanga Digital Investing Account Opening

Open a KDI account today!

Step 2: Start your account opening process by keying in the necessary details such as email address, and password.

Remember to apply referral code 101183 for an exclusive RM25 in account-opening reward when you successfully make a minimum deposit of RM250 on KDI Invest AND RM100 on KDI Save! Promo ends on 30/4/2023.

KDI Invest Promo Code

Step 3: You’ll go through a simple identification process where you’ll be asked to verify your phone number, email, IC, and personal details. This is a required process by the regulators to make sure it’s the real you that’s opening an account.

Kenanga Digital Investing Account Opening

Step 4: When you register for a KDI account, you’ll have access to both KDI Invest and KDI Save. Select a risk profile for your KDI Invest portfolio – don’t worry you can always change your risk profile anytime after account opening.

Kenanga Digital Investing Account Opening

Step 5: It’ll take about 2-3 business days to verify your account. Once that’s done, you can start investing in KDI Save or KDI Invest by making your first deposit!

Kenanga Digital Investing Account Opening

KDI Save vs Versa vs StashAway Simple

In terms of the offering, KDI Save’s closest competitors are certainly Versa and StashAway Simple. Each platform offers users flexible and low-barrier access to Money Market Instruments that pay competitive FD-like rates.

KDI Save is certainly an attractive offering with its EAR of 3.5%.

For a detailed comparison (deposit/withdrawal speed, fund comparison), check out my full comparison article below!

Personally, I use all platforms to save for different purposes and I am happy with both of them as an alternative to FD (I think you will, too!).

READ: Comparison – KDI Save vs StashAway Simple vs Versa

Versa Cash vs KDI Save vs StashAway Simple returns

No Money Lah’s Verdict

So there you have it, my review on KDI Save! If you are looking for an FD alternative to invest/save your cash, KDI Save is a platform that I can wholeheartedly recommend you to try.

Personally, I enjoyed using the platform and I think you will, too!


Chin Yi Xuan

Hi there! I am Yi Xuan. I am a writer, personal finance & REIT enthusiast, and a developing trader with the goal to become a full-time funded trader. Every week, I write about my personal learnings & discovery about life, money, and the market.

About Author & No Money Lah

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