Are you planning to invest in minimal cash? A basic savings account is a good way to start. It is a safe and secure way of keeping your hard-earned money. If you are looking for the best savings account in Malaysia, here are some factors to help you decide:
- Reasonable interest rate
It is normal for a saving account to have a fairly low-interest rate. But you can find many banks in Malaysia that offer around 0.25% interest rate. The usual rate applies to short-term financial goals such as saving for a vacation, paying a debt, and building an emergency fund. Take note that interest rates in some banks in Malaysia may differ for residents and non-residents.
- Monthly e-statements
This online tool will help keep you on track of your finances. Choose a bank that will allow you to manage your funds easily with monthly statements. Always consider the online banking feature when choosing a savings account. This saves you time from long queues at the bank.
- Low initial deposit
Finding a savings account with no minimum deposit is rare. The minimum amount among banks in Malaysia is RM20. Accounts with a very high initial deposit can turn off some people and even discourage them to open an account. No need to worry because there are a lot of banks in Malaysia that cater to the masses by setting a low initial deposit.
- No monthly service fee
Understand all the fees that come with the account, especially monthly fees. Take note, however, that a monthly service fee is different from minimum monthly balance. You can take advantage of a minimum monthly balance to avoid over-spending. It encourages you to maintain a certain balance in your account.
- Free unlimited transactions
There are banks in Malaysia that will charge you for over the counter and even ATM cash withdrawals. Avoid these unnecessary fees and select a bank that offers free unlimited transactions. Generally, free cash withdrawals are limited to eight. After that, the bank may charge a certain fee as per Malaysia’s Basic Savings Account scheme. But luckily, there are banks now that discourage this kind of system.
Remember that not all savings accounts are created equal. You will be surprised that some banks are offering a minimum deposit of up to RM200 for a basic savings account. There are some that offer up to 1% interest rate but will leave you with some catch, like high annual charges for dormant accounts and unjustified overseas withdrawal fees.