Friday, September 18, 2009

Do not keep your money in your bank savings account

Do you know how much interest you will get if you keep your money in your bank savings account today?

Here are some of the interest information obtained from the banks' website as of September 2009:

  • Public Bank Savelink - 0% for balance <= RM10,000
  • Maybank Kawanku - 0% for balance <= RM10,000
  • CIMB Regular Savings - 0.05% for balance <= RM25,000
  • Hong Leong Savings - 0.10% for balance <= RM10,000
  • RHB Passbook - 0% for balance <= RM10,000
  • EON Bank Savings - 0.10% for balance <= RM5,000
  • Alliance Bank Savings - 0.10% for balance <= RM5,000
  • HSBC Premier or PowerVantage - 0% for balance <= RM10,000
  • OCBC Premier - 0% for balance <= RM10,000
This indicates that you will get 0% interest or very close to that by keeping your money in your bank savings account.

Most banks also have Basic Savings Account which provides a better 0.25% interest for balance <= RM50,000. However, most of them also charge RM8 to the basic savings account annually.

If you still insist to keep your money in a savings account, perhaps you should keep in this Basic Savings Account.

So, it is wiser to keep a minimal amount of money in your savings account, just good enough for day-to-day regular spending. You should have your credit card, short term (<= 3 months) fixed deposit or volatile investment ready for emergency spending.

Then what to do with your money if not keeping in the savings account? Here are some of the better places to park your money:
  • Clearing debts
  • Flexible Homeloan account
  • Investment
  • Business
  • Fixed deposit
  • Insurance
  • Precious metals/stones
  • Valuable collectibles
  • etc.


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Horlic said... Reply To This Comment

I agree with you, never keep money in bank savings account. Only keep money in savings account for sufficient emergency fund depending on individual profile. Normal practice will be 3 to 6 months

TummyFull said... Reply To This Comment

Agree, the rates that banks offer today for their savings account is pitiful.

min dfin said... Reply To This Comment

If you give up your savings ATM card, you will save RM8, of your course you have to keep one. The other rest, you can forgo, if you want to keep > 1 savings account.

Spicy Sharon said... Reply To This Comment

Totally agree with you to say that its virtually no benefit on our side to save in SAV acc in the bank. Especially all the bank fees, and others. It is really a rip off.

But at the same time, those other investment vehicles you mentioned below, even though very useful, but it comes with risk as well. Higher returns, Higher risk.

That's the main reason's people keep money in banks. Its still way safer then keeping it at home.

Just my sixth pence worth xoxo =)

Unknown said... Reply To This Comment

Yes , I totally agree with your point .. Whereby the saving interest rates couldn't catch up with the inflation rate !!! Invest it rather than saving the money in the "legalized" loan sharks accounts!!!

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