Understanding Savings Account in Malaysia
I am pretty sure many of us out there owns a Savings Account. It is one of the most basic accounts one can have to create a relationship with a particular bank.
Having a savings account will not be as convenient as having a current account (checking service). To withdraw money from a savings account, we either need to go lineup at the counter (the queue at times might be pain in the ass) or withdraw using ATM card.
Oh yeah, for ATM card service there is a charge of RM 8 annual fees for all banks in Malaysia. No free lunch in this world! Friends from other continents of the world, do you all have to pay for such services from your country? Hope you can share some savings account information with me and my fellow friends.
For savings account, i have put this topic under investments because by having a savings account, we will get minimal returns from it. Yeah i really mean minimal which i put it as ‘negligible’ from my perspective.
Don’t be surprised as i have friends, working very hard and makes a decent living but ‘invest’ all their savings to a savings account! In short i would say, it’s suicidal.
0.25% per annum return, crazy ah?… Got 1 million also only get RM 2500 per year! 
Put in fixed deposit also better.
Personally, i have Maybank, Public Bank, Hong Leong Bank, RHB Bank and Standard Charted Savings Account. One might be wondering, is kampungboy really crazy?
Yeah i never encouraged people to “invest” in Savings Account. A big No No. The reason of me having so many, is mainly for some business purposes that i conduct.
Yeah, can be rest assured most of my savings account are empty! As not in 0 but at the very minimum. That’s because i keep my $ under my pillow. Haha.. Just joking.. Just closed my AM Bank Savings Account. Too many to handle.
In short, Savings Account is a basic bank account that most people have but NEVER treat your Savings Account as an Investment Account. Remember this word, Suicidal!
Advantages of a Savings Account
- Most basic account
- Simple Procedures - Photostat IC front and back and be present at the bank
- Low initial deposit to open an account (Some banks as low as RM 20)
Disadvantages of a Savings Account
- Low returns - Negligible (Not enough to buy a packet of kacang putih)
- Troublesome to withdraw money (ATM machine or lineup at counters)
- If choose to have ATM service for Savings Account, RM 8 annual fees
Hope you all enjoyed my first post at kampunginvestor. My next one will be on initial minimum initial deposit to open a savings account in Malaysia. Stay tune.
If you like my kampung style investment blog, please subscribe to our full feed RSS. You can also subscribe by Email to receive all latest investment updates. Don’t miss out!
(No Ratings Yet)
Loading ...
3 Responses to “Understanding Savings Account in Malaysia”
By terabai on Aug 10, 2008 | Reply
he he he. Maybe some people only uses it for the sake of getting the salary. Yup agree with you that it is a minimal investment but i myself don’t consider it as investment though.
hehehe. the money only transit at my saving account before it goes to a better place like ASB or ASN or ASW
By Alex on Oct 10, 2009 | Reply
Just wondering what is the “best” savings account in malaysia? I mean in terms of lowest fees and charges. I recently just got a shocked from HSBC. I opened a savings account with them times ago and never have I received any printed statement from them. Last month I received one printed statement from them and I was charge RM5 for that statement. This month I received another statement and they charged even more - RM8 for ATM Card Annual Fee, RM5 printed statement (again), RM5 monthly fee. The statement said that I am on power vantage.
Any idea anyone?
By Kampung Boy on Oct 14, 2009 | Reply
Most local banks savings account don’t have any charges except fot the RM 8 for the ATM card yearly fee.
Abt other oversea banks, they have many hidden charges here and there. So must be more careful especially with Citibank!!