Which Savings Accounts Offer The Best Interest Rates?
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Nobody uses a savings account for the thrill of watching their money grow exponentially. And rightly so – a savings account is not an investment. It’s a place to stash your cash so you can access it immediately if you need to.
But that doesn’t mean you should settle for low interest rates. After all, the difference between a 0.50% and 2.50% interest rate on a RM10,000 balance is around RM200 a year. It’s not a life changing amount, but who wouldn’t want an extra few hundred ringgit a year?
Basic savings accounts provide returns of around 0.2% to 1.5%. The good news is that there are several savings accounts in Malaysia that offer better rates – if you are eligible. Here’s what you need to know.
Comparison of high-interest savings account
Here are the best high-yield savings account in Malaysia:
| Savings account | Maximum interest rate | How to get maximum interest rate |
|---|---|---|
| Standard Chartered Privilege$aver | 4.15% | Deposit + invest + spend |
| RHB Smart Account | 3.85% | Deposit + pay + spend |
| UOB ONE Account | 6.00% | Deposit + pay + spend |
| UOB Stash Account | 2.38% | Maintain balance between RM100,001 and RM200,000 |
| OCBC 360 Account | 3.25% | Deposit + pay + spend |
| Hong Leong Bank Pay&Save Account | 4.25% | Deposit + pay + spend |
| Alliance SavePlus Account | 2.85% | Maintain balance between RM200,001 and RM500,000 |
| Rize Savings Account-i | 5.00% | Deposit |
Read on for more details about each savings account.
1. Standard Chartered Privilege$aver
Standard Chartered offers a generous total interest rate of 4.15% on your entire account balance (up to RM100,000), although you’ll have to jump through a few hoops.
How to earn maximum interest rate of 4.15%:
Generally speaking existing Standard Chartered Privilege$aver account holders are able to increase their interest from a base 0.05% p.a. to 4.15% p.a. by fulfilling three requirements:
- Save (0.70% p.a.)
- Spend (0.70% p.a. for credit and debit card spend each)
- Invest/Insure (2.00% p.a.)
If you meet all the requirements, consolidating your income and expenses through Privilege$aver could be a good option. Another advantage is that the interest rate is tiered, so even if you meet some of the requirements – say, you meet the deposit and spending requirements but choose not to invest – you could still get a decent interest return of 2.15%.
2. RHB Smart Account
This account also awards you for making saving, spending and investing transactions. Its maximum interest rate is slightly lower than the Standard Chartered’s Privilege$aver, but its requirements are lower and somewhat easier to obtain.
How to earn maximum interest rate of 3.85%:
- 0.05% base interest rate
- 1.80% if you save RM2,000 monthly
- 0.50% if you pay three bills online monthly
- 0.50% if you spend a minimum of RM1,000 with your credit or debit card monthly
There’s also an additional 1% interest return if you invest a minimum of RM1,000 in eligible products per month, but the interest only applies to your investment amount, not the amount you have in your savings account.
3. UOB ONE Account
This account rewards you for saving, spending and paying your bills, but you’ll only get the best rates if you have over RM100,000 in your account.
How to earn maximum interest rate of 6.00%:
Perform any two of the following every month while having over RM100,000 in your account:
- Credit a minimum of RM2,000 salary into your One Account
- Spend a minimum of RM500 in total on your UOB credit and debit cards
- Pay three bills of minimum RM50 each online or through the UOB Mighty app
- Make three direct debit payments of minimum RM50
- Deposit a minimum of RM2,000
Source: UOB
4. UOB Stash Account
The UOB Stash Account has a simple eligibility requirement, but you’ll need to maintain a certain balance in your account.
| Balance Tier | Maximum Effective Interest Rate |
|---|---|
| First RM25,000 | 0.05% |
| Next RM25,000 | 0.55% |
| Next RM50,000 | 1.55% |
| Next RM100,000 | 2.38% |
| Above RM200,000 | 2.22% |
To earn the best interest rates, you’ll also have to make sure that your monthly average balance for the current month is equal to or more than the previous month’s.
How to earn a maximum interest rate of 2.38%: maintain an account balance of between RM100,001 and RM200,000.
5. OCBC 360 Account
The OCBC 360 Account requires you to meet certain deposit and spending conditions to get the best interest rate, although its requirements are lower than other similar savings accounts, such as the Standard Chartered Privilege$aver or the Hong Leong Bank Pay&Save Account.
How to earn maximum interest rate of 3.25%:
- 0.10% on your entire balance
- 1.05% if you deposit RM500
- 1.05% if you pay at least three bills online
- 1.05% if you spend at least RM500 on your OCBC card(s)
However, the 3.25% interest rate is only applicable on your first RM100,000 balance. Amounts beyond that will receive the base rate of 0.05%.
The OCBC 360’s relatively low requirements could make it a good choice for consolidating your necessary or everyday expenses.
6. Hong Leong Bank Pay&Save Account
The Hong Leong Bank Pay&Save Account is similar to the OCBC 360, but it has a higher deposit requirement.
How to earn maximum interest rate of 4.25%:
- 2.25% Savings Interest if you deposit at least RM2,000 in a single transaction monthly for three consecutive months
- 0.50% e-Xtra Interest if you spend at least RM500 with your debit card monthly
- 0.50% Bonus Interest if pay cumulative of RM500 bills online every month
However, the Savings Interest is capped at RM500 per quarter, while e-Xtra Interest and Bonus Interest are capped at RM30 per month. This means that amounts beyond RM100,000 won’t receive the 2.25% interest rate.
But if you’re a stock market trader, this savings account does have a little bonus for you. You’ll get a bonus interest rate of between 0.30% and 0.90% for successful trades performed on HLeBroking, Hong Leong Bank’s stock broking platform.
7. Alliance SavePlus Account
The Alliance SavePlus Account has the most straightforward eligibility requirements on this list. The only downside is that you’ll need a hefty bank account balance to enjoy the best rates:
| Amount (RM) | Rate (% p.a.) |
|---|---|
| 0 - 20,000 | 0.00% |
| 20,001 - 50,000 | 1.20% |
| 50,001 - 200,000 | 1.80% |
| 200,001 – 500,000 | 2.85% |
| 500,001 and above | 3.00% |
How to earn a maximum interest rate of 2.85%: maintain an account balance of between RM200,001 and RM500,000. Accounts with more than that are subject to a 3.00% interest rate, but have a massive upfront barrier to entry.
8. Rize Savings Account-i
Rize’s Murabahah Savings Account-i offers a fairly high interest rate and a relatively low barrier to entry.
How to earn maximum interest rate of 5.00%: Deposit a minimum of RM20 to earn 5.00% interest up to a maximum of RM5,000.
This account is fantastic for those who are looking for a savings account with a low barrier to entry. Customers can benefit from a high interest rate up to RM5,000. Depositing more than that will net you a lower interest rate of 4.00%, but this remain relatively high in comparison to other options.
More low-risk ways to grow your money
Looking for more safe ways to grow your money? Consider these fixed deposit accounts or these fixed deposit alternatives. If you can afford to take a bit more risk, you can even invest your money in these low-risk investments. Just remember not to invest any money you may need to access immediately, such as your emergency fund – this belongs in a savings account.
