A savings account is a type of deposit account into which you can make deposits and withdrawals. Savings accounts, generally, offer fairly low rates of interest; you can, however, withdraw money from your savings account without losing out on any interest accrued (withdrawals may be restricted or penalties levied on certain special savings account products; check with the bank issuing the savings account or go through the terms and conditions).
We’ve tried to put together a few tips to help you choose and open a savings account:
1. Understand your requirements – Do you need an account into which you just can withdraw and deposit money? Then a savings account is the one for you. Do you want to write cheques or do you need an account for your small/medium business? Then you need a current account. Do you want to earn interest on cash that you can set aside? A fixed deposit is what you are looking for. Match your requirements to the appropriate product.
2. Learn more about savings accounts – There are basic savings accounts, kids savings account, seniors’ savings account, Islamic savings account and adult savings accounts. And, did you know that savings accounts with cooperative banks do not carry PIDM protection? Knowledge is important, so make sure that you are armed with the requisite stuff. Start with Bank Negara Malaysia’s financial literacy website, Banking Info (http://www.bankinginfo.com.my/)
3. Check out the features – Minimum deposit amount requirements, interest rates, fees and charges applicable for various transactions and in various situations, ATM / Debit card issual, online / phone banking, online payments and transfers and other facilities – make sure that you go through all the features and charges associated with the account.
4. Shop around – Don’t limit yourself; check around. Almost all banks have different savings account products. Check out and satisfy yourself as to the features and level of customer service available. Only then, zero in on a product.
5. Understand the application process – You may be required to be present at the branch at the time of opening an account; you may need an “introducer”. Visit the bank’s website or a branch and talk to the relevant people to understand the application process in detail.
6. Keep requirements ready – The bank may require an initial deposit payment; ensure you have the required cash in hand when you go to open the account. You will also be required to submit identification and other documents. This could mean a copy of your NRIC or passport and possibly a utility bill for verification of address.
7. Make an application – Finally, make an application. Depending upon the bank you may make an application at the branch or fill up the application online. You may also be required to make the initial deposit payment at the time of submitting the application. When filling up the application online, take time and provide the required details accurately.