Friday, October 31, 2008

Manage Your Saving Accounts Wisely

Based on my previous post on interest rates for saving accounts, it's really not worth to place your money in a normal saving accounts. My bf advise me to transfer the money from my saving accounts to a fixed deposit (FD). Assuming I have 5K in my saving accounts, I will be getting an interest of RM10.00/year. If I place the same 5K in a 12-month FD, at current interest rates of 3.7%, I will be getting RM185.00/year. Wow, there is a significant difference of RM175.00. He is absolutely right! He also share with me, if I am not sure whether I will need to use the money or not (in near future - less than 6 months), it's better to place under 1-month FD, and split your FD into 5K/placement or according to your bank minimum placement. But, bear in mind, if your placement is for 12-month, and you withdraw the money by 5th month, you will not earn any interest from it. You will be paid half of your interest if you withdraw your money between the 6th-12 month. Make sure you plan ahead...wisely...
So, if you have some extra money in your saving accounts, why not transfer the money to FD and let the extra money to make more extra money for you? Let's get richer each day!!!

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