Best Places to Store Your Savings Right Now

Author

Shinji Ong
October 26, 2023

This article has been updated as of 2 May 2024.

1. GXBank (3% pa + 1% cashback)

This is the bank that never stops giving.

After opening an account, you’ll earn 3% pa on your savings by default, with interest paid and compounded daily.

The debit card also gives you unlimited 1% cashback on all expenses and supports overseas spending.

✅Interest paid and compounded daily.

✅Savings account, insured by PIDM.

✅Deposit/withdraw instantly using DuitNow.

✅Unlimited 1% cashback on all expenses (including overseas).

❌Needs significant improvement on customer service.

❌Not Shariah-compliant.

IMPORTANT UPDATE: Due to the sheer number of new accounts, GXBank’s customer service is filled with backlogs and unsettled queries. Users have reported that their accounts have been frozen and the app can be quite buggy at times. Use GXBank at your own risk. ⚠️

Explore more: https://gxbank.my/

2. Touch n’ GO+ (3.49% pa)

GO+ offers superb flexibility and pays daily interest based on the balance in your account at the end of each day.

It will not affect your e-wallet payments.

Whenever you make a deposit or transfer, the funds will automatically be added or deducted from your GO+ account.

✅Interest paid and compounded daily.

✅Shariah compliant.

✅Deposit/withdraw instantly with DuitNow.

❌Maximum deposit limit of RM9,500.💡

❌Not insured by PIDM.

💡You’ll still earn daily interest beyond this limit, but you won’t be able to deposit more funds.

3. Versa Cash (3.77% pa)

Simple, sleek, and efficient. Versa is designed to enhance your experience in growing your savings.

The earnings rate is after fees. You’ll receive profits (almost) everyday whenever the unit price increases, and Versa automatically reinvests them every month, helping you earn more overtime.

✅Interest paid and compounded daily.

✅Deposit/withdraw in 2-3 business days.

❌Not insured by PIDM.

❌Not Shariah-compliant.💡

💡Versa has a similar fund known as Versa Cash-i and is Shariah-compliant, but with slightly lower returns.

4. Rize (Promo Rate: 3.8% pa)

It’s a love-hate relationship with this one. Though Rize offers a competitive payout, the quality of their customer service is questionable.

We spent 3 months to open our account previously, and many users have voiced out their unpleasant experience with the app.

The 3.8% pa promo rate from Rize applies to any amount.

✅Shariah compliant.

✅Savings account, insured by PIDM.

✅Deposit/withdraw instantly using DuitNow.

❌Needs significant improvement on customer service.

❌Payout occurs monthly.

IMPORTANT UPDATE: Rize has encountered huge issues previously. In December, users reported that the payouts were not on time and transactions were not going through. Though it has since been resolved, use Rize at your own risk. ⚠️

5. ASB & ASM (4-6% pa)

Amanah Saham Bumiputera (ASB) and Amanah Saham Malaysia (ASM) are unit trust funds managed by Amanah Saham Nasional Berhad (ANSB).

The funds are always fixed at RM1.00 per unit, giving you the flexibility to plan your investments without worrying about market volatility or price swings.

Unfortunately, as the name suggests, ASB is only available for Bumis. For non-Bumis, ASM is the next alternative, but the units are limited and often hard to purchase.

✅Shariah compliant.

✅Stable, consistent returns.

✅Deposit/withdraw in 1-2 business days.

❌Limited units for non-bumis (ASM).

❌Payout occurs once a year.

❌Not insured by PIDM.

6. Fixed Deposits (3.50-3.75% pa)

FDs have been long touted as one of the safest ways to earn guaranteed interest on your funds.

While it takes away the flexibility of access, your money will grow at a predetermined rate, and you’ll know exactly how much you’ll earn at the end of the term.

Come to think of it, the lock-in period is actually more of an advantage than a downside, as you’ll find it much easier to save towards a goal.

✅Insured by PIDM.

✅Shariah compliant.

✅Guaranteed returns.

✅Liquidity – withdraw funds instantly.

❌Interest is forfeited when funds are redeemed early.

❌Significant capital (>RM1,000) to begin investing.

“Got so many options, I can’t decide.”

Here’s how I do it:

  • TnG GO+, GXBank, and Rize for daily spending/savings due to its superb flexibility.

  • Versa for short to medium-term savings (>3 months).

  • ASB/ASM for medium to long-term savings (>1 year).

  • Fixed Deposits for a specific savings goal (ie. Wedding, downpayment for a car, holiday trip, etc.).

Growing your savings has never been easier.

With the existence of numerous cash apps, companies are getting ever-more competitive for users’ funds.

At a 4% annual compound rate, you’ll achieve RM50,000 in 5 years if you set aside roughly RM755 per month.

This is much faster than saving manually without investing (RM833/month).

Of course, saving RM50,000 may not be feasible for everyone, but it’s great to have some money (no matter how small) set aside rather than none at all.

DISCLAIMER: Investing in cash apps or unit trusts has its own risks as they are different from opening a deposit account with a financial institution. You should speak with a financial planner before making any investing decisions. ⚠️

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