March 4th, 2019 | Updated on June 29th, 2022
If there’s one thing every consumer in Malaysia complains about, it has to be the painfully low yields on savings accounts.
It is a phenomenon replicated across the world with most average savings accounts returning a measly APY (annual percentage yield, or interest). But there’s a light at the end of the tunnel for consumers in the country.
With the economy once again looking up and competition between banks growing, there’s a move to increase savings by providing amazing interest rates. Some of the biggest banks now offer incredible returns on savings and it is now possible to quadruple your savings.
This article looks at a simple way to boost your savings through the emerging competitive interest rates offered by banks. Take a look:
1. Compare The Interest Rates Offered By Banks
Access to financial information is easy as Malaysia fairs well in terms of internet connectivity. As a household owner or business owner, you can improve your financial situation by accessing this information and choosing a savings account with the best rates.
There are different interest rates review websites offering an objective assessment of the savings products available and this should be your first stop.
2. Find A Savings Account That Suits Your Needs
If you want to quadruple your savings via high yield savings account, you have to research extensively and find a bank that offers custom financial services. This means the savings account you choose should suit your financial situation.
Some of the savings accounts have minimum monthly savings and others don’t allow withdrawals for a certain period. You need to check all these requirements and find a savings account that has high yields and yet suits your unique financial needs.
3. Learn How The High Yield Savings Accounts Work
The best banks provide intense customer education before selling these products. However, others are not forthright about the details leading to financial problems for customers. When treading reviews, look for any hidden requirements and fees to avoid falling into a trap.
A good savings account will include a base rate and bonus interest rates applicable on deposits, bill payments, and other forms of spending. The base rate in most cases has a low APY of 0.50% but when you add the other bonuses, you might end with an interest rate of over 4% p.a.
For instance, if you Deposit at least RM500 every month, you earn 1.20% p.a and if you pay at least three bills online every month, you earn an extra 1.20% p.a. Your spending on the bank’s card also earns you more interest on your savings allowing you to boost your earnings. This means you can quadruple your money with such a savings account.
4. Use An Online Account Interest Calculator
Now that every bank has its unique terms and conditions, it is advisable to check for their online calculator to understand how your high yield savings account works. Of course, the figures given are for demonstration purposes but you will get a good idea on the returns you expect in a year.
Is it possible to quadruple your savings via a high yield savings account? It might sound like a marketing gimmick but looking at this new approach by banks, it is possible. Go ahead and find the best high yield savings account to boost your savings.
