Best Savings Account in Malaysia to apply
Can I have more than one savings account within the same bank? Of course, you can. Almost every one of us has, at least, basic savings account for safekeeping and transaction purposes.
However, a basic savings account sometimes gives very little to zero profit on your hard-earned savings. You may want to explore other savings options to grow your money but you don’t know which bank is the best to open a new savings account with.
What is a Savings Account?
A savings account is a banking product designed to keep your money secure while earning interest. It also allows you to easily manage everyday transactions and make withdrawals whenever you need.
In Malaysia, deposits in a savings account are protected by PIDM up to RM250,000, ensuring that your hard-earned money is safe in the event of bank failure.
In return for your deposits, the bank pays you interest or a profit rate. Typically, the interest rate on a savings account is lower than that of a fixed deposit because it primarily serves as a safekeeping option for your funds.
Many savings accounts come with a passbook, allowing depositors to record and monitor their transactions, including accrued interest.
For accounts without passbooks, you can track your transactions and interest earnings through bank statements, available in both paper and electronic formats.
Additionally, a savings account provides easy access to your money through various services, including:
- Over-the-counter transactions
- ATM withdrawals using a debit card
- Interbank GIRO transfers
- Internet banking for bill payments
How does a Savings Accounts work?
A savings account functions by allowing you to deposit money and earn interest on your balance. You can add funds through cash deposits, checks, or electronic transfers, and the bank pays you interest, often compounded, so you earn interest on both your initial deposits and any interest accrued. While you can withdraw money as needed, there may be limits on the number of withdrawals allowed each month.
Many accounts also require a minimum balance to avoid fees or to earn interest. Additionally, Savings Accounts are typically insured by government agencies, which protects your funds up to a certain limit. Overall, a Savings Account provides a secure and convenient way to save money while earning some interest.