Friday, September 18, 2009

How Much Do You Usually Maintain In Your Saving Account?

My father opened my first saving account when I was 13 years old. That was because I was studying at boarding school and we needed the account so he can place my pocket money in the account. When I need some pocket money, I just withdraw it from the bank. Back then, I don't have an ATM card. I need to queue up to get my withdrawal. It's really not convenient for a young student to travel to the town just to get RM50. If I am not mistaken, the most I ever have in that account was about RM200. That was my first saving account.

After I started work, I opened a different saving account. This account is where my monthly salary will be credited at the end of the month and also the account where I transfer the payment to my creditors. So, towards middle of the month, there will be little left in the account. But, after sometime the amount can be more than few months salary. I used to keep the extra cash in my saving account, but recently I started to transfer the extra cash to other accounts, to be specific the accounts which can help me to earn additional cash. It can be either gold saving account, fixed deposit or investment account.

And I only maintain about one month salary saving in my saving account. There are reasons why I minimise my saving in my saving account to about one month salary. Firstly it is to cover for my super emergency use. So, one month salary should be enough. Secondly, the interest is too low. Thirdly, In case I lost my ATM card and someone manage to withdraw the cash from my saving account, the most he can get is the one month salary.

So, how much do you have in your saving accounts?


  1. Hi, I don't recommend gold saving passbook because the price isn't go accordingly to the real gold price in the market. They have their own measurement which is unknown to us.

  2. Hi Mrcoolku, Public bank has their own way of setting the selling and buying price. I did some calculation and it's based on certain percentage. So far, it's ok with me. I wish to invest in different products. Also, keeping physical gold myselt is too risky for me.

  3. More or less the same as you Yan. ^^ If not because of emergency precautions I wouldn't have put any. Can't count on the interest from savings acc, too low; FD is decreasing as well.. as you said, preferably mutual funds or other investments.

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  4. Hi Ching Ya! yes, should place our $$$ in those accounts which can help us to make some $$$ :)

  5. I tried to minimise the amount in saving acc to only quarter of my monthly income and top up to my stock trading account every now and then. I don't like top up into mutual fund because it's not that flexible and the processing fee is high if you want to pull out for emergency.

  6. Hi Zen, I am still not familiar with stock trading. Perhaps, it's time for me to venture into stock trading. My mutual fund accounts are not for my emergency use, so there's no worries for flexibility and exit fees. Btw, I found your blog very informative especially on stock trading. Keep it up!

  7. Hi Yan,

    Before i started investing in stock market, i read many stock related article online and books. Until now i'm still learning. If you really interested to start, i suggest you to familiarize yourself with as many jargon/vocabulary as possible. Pick up book like The Winning Investment Habits of Warren Buffet & George Soros - the book is very easy to understand for beginner so it should be helpful.