Best Savings Account in Malaysia

A savings account is a deposit account offered by a bank, which allows you to save and withdraw your money as and when you like. In most cases, saving accounts generate less interest than Fixed Deposit accounts; but unlike the latter, there are no maturity periods and you do not lose any earned interest when you choose to withdraw your deposits before a certain period of time.

• How Do Saving Accounts Work?

  In a standard savings account arrangement, you deposit your funds to a bank and receive interest based on the amount of money you have in the account on periodic basis. You are allowed to access the funds you have deposited through a variety of mediums, which include withdrawals from a bank counter, an Automated Teller Machine (ATM) through a debit card, or via phone banking and in certain cases, through an online banking service.

  Savings accounts generally do not have cheque facilities. In Malaysia, a deposit account that works in an identical manner as a savings account but comes with a chequebook is known as a current account. However, current accounts are typically harder to qualify for, and could also come with maintenance charges.

• Does a Savings Account Generate Interest Rate?

  Most savings accounts in Malaysia do generate interest, but the rates pale in comparison to the returns generated by Fixed Deposit accounts. Generally speaking, saving accounts are not considered good financial vehicles to generate interest returns from your money. Instead, they are mostly considered as a means to store and withdraw money for everyday expenditure.

  To get the best return from your savings account, always make sure you have done the necessary comparison between different savings accounts before you commit. Also, some savings accounts may feature a tiered interest rate system, which gives you a higher interest rate for higher account balances. Ultimately, you should always find out more about your saving account in order to take full advantage of its policies.

• Are Your Deposits Safe With a Savings Account?

  Deposits made at most banks in Malaysia are protected by Perbadanan Insurans Deposit Malaysia (PIDM), an insurance that automatically insures depositors against closure of the bank for up to RM250,000 per depositor per bank. Banks that are protected under PIDM are known as PIDM member banks, usually identifiable by a PIDM sign at the front counters.

  To be insured by PIDM for more than RM250,000, the best way is to place any amount above RM250,000 with a different bank. Another way is to place the money into a joint-name account or an Islamic account, which are insured separately from conventional single-name account. Information about PIDM can be found here.

• How to Find a Savings Account with the Best Interest Rate?

  Intense competition in the banking sector means certain banks do offer higher interest rates for their savings accounts compared to others in order to capture a wider market segment. As a smart consumer, you are advised to make an effort to seek out these banks.

  To find the savings accounts with the best interest rates in Malaysia, simply refer to the table at the top of the page, which contains a list of all savings accounts offered by major banks in Malaysia as well as their latest prevailing rates. Upon finding a savings account you like, you can also apply for one online and at no charge. Simply click on “Apply Now” beside the savings account of your choice, and allow our consultant to help make the necessary arrangements on your behalf.