Nowadays, even teenagers know that a savings account is the last place to put your money if you want it to grow appreciably. It is only logical as these accounts should give you a place to store your money so you can readily access it. It is by no means an investment.
You may want to know that you don’t have to settle for the meager rates typical of the traditional savings account. Of the six (6) different types of savings accounts you can open in Malaysia right now, the one that offers the highest interest on your savings is the high-interest savings account.
What Is a High-Interest Savings Account?
As the name suggests, you can open this type of savings account with a bank that automatically entitles you to higher-than-average returns. With these accounts, you can usually get several times more interest on your savings.
How Does a High-Interest Savings Account Work?
Mainly, high-yield savings accounts operate similarly to your conventional savings account with a few minor adjustments.
The first thing typical of most high-interest savings accounts is that there’s almost always a minimum deposit you have to keep in the statement. Also, with these accounts, the longer you’re prepared to stash your money away, the higher your returns will likely be.
You may pay a charge if you withdraw your money before the notice ends.
Factors To Consider When Choosing a High Yield Savings Account
Some variables to evaluate if you want to pick the best high-interest savings to account for you include:
The Interest Rate Offered
Make sure you clearly know what interest rate you can expect from any given high-yield savings account.
The Bonus Rate Offered
Many banks offer attractive bonus rates to encourage customers to open high-interest savings accounts. This feature may contribute significantly to the size of your returns.
The Maximum And Minimum Deposits Allowed
- What’s the minimum amount you can put in this account?
- What’s the highest amount of money you can save here?
Ensure you know the answers to these questions to tell if the account is proper for you and the best use to put it to.
The Notice Period Attached
- How long do you keep your money away to get an inevitable return?
- Are you comfortable with that time frame and the proposed reward?
Know this before moving forward as well.
Fees, Charges, and Limitations Imposed
A hidden fee or charge eating into your savings or returns is the last thing you want. So, ensure you’re clear on what the bank will charge you for this account and its terms and conditions.
Conclusion
Having high-interest savings accounts is the best way to grow your money safely and passively in Malaysia. But that’s if you get the right kind and use it properly.
