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.