Which Savings Accounts Offer The Best Interest Rates?
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||How to get maximum interest rate|
|Citibank AcceleRate Savings Account||Deposit monthly|
|Standard Chartered Privilege$aver||Deposit + invest + spend|
|OCBC 360 Account||Deposit + pay + spend|
|UOB Stash Account||Maintain balance above RM100,000|
|Hong Leong Bank Pay&Save Account||Deposit + pay + spend|
|Alliance SavePlus Account||Maintain balance above RM350,000|
1. Citibank AcceleRate Savings Account
Citibank offers the highest interest rate in our list, but its eligibility requirements are not straightforward.
To get the best rates, you’ll have to deposit fresh funds every month. The bonus interest rate of 4.38% doesn’t apply to your entire account balance, but to your incremental balance (your new balance minus the previous month’s average balance).
As such, you should only consider this savings account if you regularly deposit new funds into your savings account.
How to earn maximum interest rate of 4.88%:
- 0.50% on your average balance
- 4.38% on your incremental balance versus previous month’s average balance (capped at RM30,000 per month)
2. Standard Chartered Privilege$aver
Standard Chartered offers a generous total interest rate of 4.60% 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 4.60%:
- 0.10% base interest rate
- 1.50% if you deposit RM3,000 monthly
- 1.00% if you spend RM1,000 on your credit card monthly
- 2.00% if you invest RM1,000 through Bancassurance/Bankatakaful or a unit trust regular savings plan monthly
If you meet all the requirements, consolidating your income and expenses through Privilege$aver could be a good option. Another advantage is that the interest rate is tiered, so even if you meet some of the requirements – say, you meet the deposit and spending requirements, but choose not to invest – you could still get an attractive interest return of 2.60%.
3. OCBC 360 Account
The OCBC 360 Account requires you to meet certain deposit and spending conditions to get the best interest rate, although its requirements are lower than other similar savings accounts, such as the Standard Chartered Privilege$aver or the Hong Leong Bank Pay&Save Account.
How to earn maximum interest rate of 2.45%:
- 0.05% on your entire balance
- 0.80% if you deposit RM500
- 0.80% if you pay at least three bills online
- 0.80% if you spend at least RM500 on your OCBC card(s)
However, the 2.45% 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.
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|
How to earn maximum interest rate of 2.30%: maintain an account balance of above RM100,000
5. 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 2.25%:
- 1.25% Savings Interest if you deposit at least RM2,000 in a single transaction monthly
- 0.50% e-Xtra Interest if you spend at least RM500 with your debit card monthly
- 0.50% Bonus Interest if pay at least RM500 online on your bills, loans or credit card monthly
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.
6. 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||0.20|
|50,001 - 200,000||0.80|
|200,001 - 350,000||2.00|
More low-risk ways to grow your money
Looking for more safe ways to grow your money? Consider these fixed deposit accounts or this fixed deposit alternative. 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.