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Most of us have money goals that we want to achieve. Maybe you’re saving up for an emergency fund, pay-off debt or taking your loved ones on a family trip in the future.

 

Boost your savings and reach your goals faster with these three tips. Go ahead and give them a try!

Tip #1: Switch to a High-Interest Savings Account

 

 If you’ve been successfully saving 5 to 10% of your income every month, congratulations! But where are you keeping them?

 

The current low-rate environment can provide favourable rates for those looking for loan/financing, but it also means that you might not generate a higher dividend on your savings.

 

One way to beat this is to switch to a higher-interest/profit savings account. A quick look on a comparison website shows that banks in Malaysia offer a variety of rates, ranging from 0.25% p.a. to tiered interest up to 2% p.a.

 

How can a higher interest/profit rate boost your savings? For example, let's assume that: RM1,000 initial deposit + RM100 monthly deposit for 2 years. How much will your money grow? 

 

Account X (0.25% p.a.) Account Y (1.50% p.a.)

Your savings:

RM1,000 (deposit) + RM2,400 (24-month savings) = RM3,400.

 

Interest/Profit earned: RM11.27

 

Your savings:

RM1,000 (deposit) + RM2,400 (24-month savings) = RM3,400.

 

Interest/Profit earned: RM68.30

 

 

Just by switching to a better performing savings account, you can earn a higher dividend and boost your savings even more. So why not make the switch now?  

 

Just go through comparison websites and choose the best account that fits your lifestyle and financial goals.

 

However, some banks do offer tiered rates – which means that you need to keep a certain amount of money to enjoy those high rates – so be sure to read through each product before making your decision.

 

Want to find out about CIMB's savings accounts? Check out our products here.  

Tip #2: Use Apps to Set Your Money Goals

 

Saving money every month takes determination and sometimes we need a little encouragement to keep going. 

 

Even with a goal in mind, it can get demotivating at times. The best way to curb this is to “physically” see our savings grow. 

 

Some banking apps (such as CIMB Clicks) have features that allows you to set up financial objectives and to contribute a monthly sum to each objective. When you can see your money grow, you’ll be more motivated to keep saving until you reach your goals.

 

You can also set a direct debit to your high-interest account every month. This can do the trick too.

 

Or, you can also try out the many money saving methods out there. Just be sure to keep going until your reach your goals. 

Tip #3: Start Investing

Apart from taking advantage of a high-interest savings account, you can also choose to diversify and to invest a portion of your money. If you’re new to investment, always remember to:

 

1.  Know your risk profile.

2.  Learn more about investments. You can start with our investment articles.

3.  Keep away from investment scams

4.  Diversify your investment to minimise risk.

 

Watch our CIMB #finlite video for additional tips on how to maximise your savings here:

 

2 ways to maximise your money's potential and grow your savings
2 ways to maximise your money's potential and grow your savings

 

 

Additional tip: If you're just starting out and wondering how much you need to save each month, there is an easy calculation that you can use as reference:

 

[monthly savings amount ÷ Monthly gross income = your savings rate]

 

While a good general rule of thumb to follow is to save at least 15% of your income each year, don’t be disheartened if your savings is not where you want it to be. Just keep saving and it will grow in the long run! 

 

 

 

This article is for informational purposes only and CIMB does not make any representation and warranty as to the accuracy, completeness and fairness of any information contained in this article. As this article is general in nature, it is not intended to address the circumstances of any particular individual or entity. You are advised to consult a financial advisor or investment professional before making any decisions based on the information contained in this article. CIMB assumes no liability for any consequences arising from your reliance on the information presented here.

 

 

 

 

#Savings #Savings

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