Wednesday, 19 August 2009

Grow Your Money 3 : Secure Your Savings

One of the first things you need to do for your financial safety in time of recession like these recent years, is to have as much saving as possible. Rules of thumb, is to have minimally 8 months of spending in term of savings. 8 months of saving should give you enough time to get your life back on track in period of turmoil.

When I stressed the word “savings”, it is crucial to ensure that the money we are saving as our emergency fund to be as liquid as possible. That means, if you need cash, there is no problem for you to withdraw your savings as hard cash.

Of course everybody likes to have steady growth for their money. However, for your emergency fund to put inside an investment scheme is somewhat risky. If the investment fails, losing your emergency saving to investment will be quite tough to cope with. That is why, any kind of money that set aside to be use within the next 5 years (as such your emergency fund), must not be put into medium or high risk investment.

Even if you put your savings into low risk investment whereby the scheme based on selling price and buying price of invested lot, it would contribute certain risk to your money. If you need to liquidify the money from that investment, and happen that the buying price is very low compare to the bank initial selling price, withdrawing your money from your investment will mean direct lost of your money.

The best way to maintain your emergency saving is simply to put them into saving account. Most of saving accounts are guaranteed by the bank not to loose your money. Of course the growth rate will be very minimal, but at least, for your peace of mind, you know that your money is well taken care of and can easily be withdrawn without having any downside on your money.

I have listed below list of Malaysia banks that offer savings account. Check out their comparative dividend rate and choose the one that will maximize both security and growth of your money.

Banking Institution Initial Deposit Rates
(RM) Range (RM) Rates % (p.a.)
Affin Bank Berhad
Ordinary Savings Account 100 1.00-999.99
1,000.00-4,999.99
5,000.00-19,999.99
20,000.00-99,999.99
100,000.00-499,999.99
500,000.00-999,999.99
1,000,000.00 and above
0.35
0.9
1.35
2
2.25
2.5
3
Bank of America Malaysia Berhad
Saving Account 200 equivalent or above USD150k 1
Bank of China (Malaysia) Berhad
Savings Account 20 up to RM5,000
up to RM10,000.00
up to RM20,000.00
up to RM50,000.00
up to RM100,000.00
Above RM100,000
0.25
0.25
0.4
0.5
1.25
1.5
CIMB Bank Berhad
Savings Account (Passbook) 250 Up to 1000
Up to RM 2000
Up to RM 25000
Up to RM 50000
Up to RM 100000
Above RM 100000
0.05
0.05
0.05
0.1
0.15
1
Savings Account (Statement) 250 Up to 1000
Up to RM 2000
Up to RM 25000
Up to RM 50000
Up to RM 100000
Above RM 100000
0.05
0.05
0.05
0.1
0.15
1
Air Asia Savers Account 50 All deposit 0.8
CIMB Islamic Bank Berhad
Mudharabah Saving Account-i 20
1.08
Citibank Berhad
Citibank Hi-Save Account 5000 Up to RM50,000
Up to RM200,000
Up to RM500,000
Up to RM1 million
Above RM1 million
0.1
0.25
0.75
1
1.3
Savings Account 500 Up to 50,000
Up to 200,000
Up to 1 million
Above 1 million
0.25
0.35
0.75
1
EON Bank Berhad
High Flexi Savings Account 500 Up to 5,000
Up to 10,000
Up to 20,000
Up to 50,000
Above 50,000
0
0.2
0.5
0.8
2
Hong Leong Bank Berhad
Hong Leong Savings Account 200 Up to RM10,000
Up to RM50,000
Up to RM100,000
Above RM100,000
0.1
0.2
0.5
1
Malayan Banking Berhad
Kawanku Savings Account 250 Up to RM10,000
Up to RM25,000
Up to RM50,000
Up to RM100,000
Up to RM200,000
Up to RM500,000
Above RM500,000
0
0.15
0.2
0.45
0.8
0.9
1
OCBC Bank (Malaysia) Berhad
EasiSave Plus 500 Up to RM40,000
Up to RM70,000
Up to RM100,000
Up to RM500,000
Above RM500,000
0.15
0.3
0.5
0.7
1
Money Max 250 Up to RM50,000
Up to RM100,000
Up to RM500,000
Above RM500,000
0.35
0.5
0.6
1.2
External Account 20 Up to RM50,000
Up to RM100,000
Up to RM200,000
Above RM200,000
0
0.05
0.25
0.45
EasiStart Account 0 Up to RM5,000
Up to RM10,000
Up to RM15,000
Above RM15,000
0.2
0.4
0.6
2
iQ Savings Plan 0 RM50 - RM990 monthly
RM1,000 - RM5,000 monthly
3.28
4
Public Bank Berhad
PLUS Savings Account 250 Up to RM3,000
Up to RM10,000
Up to RM50,000
Up to RM100,000
Up to RM1.0 Million
Above RM1.0 Million
0
0.1
0.2
0.45
0.6
1
PB Savelink Account 500 Up to RM10,000
Up to RM30,000
Up to RM50,000
Up to RM75,000
Up to RM300,000
Up to RM500,000
Up to RM1.0 Million
Above RM1.0 Million
0
0.05
0.05
0.2
0.2
0.35
0.35
0.75
Public Islamic Bank Bhd (PIBB)
Wadiah Savings Account-i 250 Up to 3,000
3,000 to 10,000
10,000 to 30,000
30,000 to 50,000
50,000 to 75,000
75,000 to 100,000
Above 100,000
0
0.1
0.2
0.2
0.45
0.45
0.6
RHB Bank Berhad
Passbook Savings 250 Up to 1,000
Up to 10,000
Up to 20,000
Up to 50,000
Up to 100,000
Above 100,000
0
0
0.1
0.25
0.3
1
RHB Statement Savings Account 100 Up to 1,000
Up to 10,000
Up to 20,000
Up to 50,000
Up to 100,000
Above 100,000
0
0.1
0.1
0.3
0.8
1
MaxSave Account 200 Up to 1,000
Up to 10,000
Up to 20,000
Up to 50,000
Up to 100,000
Above 100,000
0
0.6
0.8
1.2
1.7
2
MySave Account 100 Up to RM3,000
Above RM3,000
0
0.6
Standard Chartered Bank Malaysia Berhad
eSaver 0 Up to 100,000
>100,000 - 200,000
>200,000 - 1,000,000
Above 1,000,000
0.4
2
1.3
1.5
Privilege Savings Account 10000 Up to 25,000
>25,000 - 300,000
>300,000 - 800,000
Above 800,000
0
1
1.25
1.5
Master Savings 250 Up to 25,000
>25,000 - 150,000
>150,000 - 300,000
>300,000 - 800,000
Above 800,000
0
0.1
0.2
0.3
0.7
My Dream Account 2000 Up to 100,000
>100,000 - 200,000
Above 200,000
0.5
1
1.5
United Overseas Bank (Malaysia) Berhad
Savings Plus 2000 Up to RM 10,000
Up to RM 50,000
Up to RM 100,000
Above RM 100,000
0.1
0.25
0.45
0.8
U-Account 50 Up to RM10,000
Up to RM50,000
Up to RM100,000
Above to RM10,000
0.05
0.05
0.1
0.2
e-Account 500 Up to RM 10,000
Up to RM 50,000
Up to RM 100,000
Above RM 100,000
0.3
0.6
0.9
1.35


Later, I will uncover other ideas on how you can grow your savings in a safer way aside from savings account.

1 comment:

kathryn said...

Pretty post. I just stumbled upon your site and wanted to say that I have really enjoyed reading your blog posts. Any way I'll be coming back and I hope you post again soon.


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