Savings Account in Malaysia – the Basics

Written by iMoney Editorial

Planning to cut down on your expenditure and want to find a place to keep your stash of cash? Opening a savings account may be the answer. Many of us are familiar with savings accounts but still don’t know much about the nature and features of such accounts. Below, we provide an overview of savings accounts in Malaysia:

What is a Savings Account?

Savings accounts are simply a type of bank account that enables you to keep your money in a safe place while earning a small amount of interest each month. Almost every single bank in Malaysia offers such a facility.

Advantages of Having a Savings Account

It is important to know the advantages of having a savings account. Here’s a list of benefits:

• Good Money Management. With a savings account, you can manage your money wisely. Unlike cash, you can easily keep track of all your transactions and interests accumulated from your savings account through your monthly account statement.
• Great During Emergencies. In times of emergencies (e.g. sudden medical expenses), you can use the money you have in your savings account to help fund any shortfall in cash.
• Day-to-Day Convenience. As long as you have a savings account, anyone is able to pay you by depositing money directly into your account. Your savings account is accessible at all times, and the fact that you can cash out almost anywhere makes your life much easier.
• Safety is Guaranteed. As long as your bank is regulated and under the wings of Perbadanan Insurans Deposit Malaysia (PIDM), your savings are protected and insured without any charges for up to RM100,000 per account.
• Earn Interest Every Month. Although the interest rates on savings accounts are generally very low, you still earn some amount of interest over time. As opposed to insecurely saving money at home with zero interest, this is a far better alternative.

Opening a savings account is without a doubt beneficial. For more information about some of the best savings accounts in Malaysia, check out our savings account comparison table!