For this post, I will be sharing how to manage your savings account wisely.
How to manage your savings account wisely?
Based on my previous post on interest rates for
Instead, you can better manage your savings account by transferring the money to a fixed deposit (FD) account.
Why?
Assuming I have RM5,000 in my savings account. With an interest rate of about 0.25% p.a., I will only be getting an interest of about RM12.50 at the end of the
But, if I place the same RM5,000 in a 12-month fixed deposit, I will be receiving RM100.00 at the end of the 12th month as interest. This is by assuming the fixed interest rate is at 2.0% p.a.
See, there is a significant difference of RM87.50!
For better flexibility, it is advisable to place the money under a 1-month fixed deposit tenure. Especially if you are unsure if you need the money.
Aside from that, you can consider splitting your fixed deposit into smaller amounts for each placement.
It is also worth noting that every bank has
Also, if you make a withdrawal before the maturity date, you might not earn any interest from it.
Some financial institutions will pay you half of your interest if you withdraw your money between the 6th to 12th months. So, make sure you plan wisely
Final thoughts
So, do you have some extra money in your savings account?
If yes, why not transfer the money to FD and let the extra money help you to make more money?
Let’s manage our savings account wisely and grow our money!
Lastly, you might be interested to read my sharing on 4 simple but useful ways to maximize the return from fixed deposit placement.