10 January 2012

No Fee Charged for Basic Saving Accounts in Malaysia

Sometimes, I was wondering why I need to pay some annual fee for my saving accounts, while other friends do not need to pay. After doing some searching, I find an relevant letter from Bank Negara Malaysia who replied the editor of The Star, regarding an article entitled "Ironic that I 'Paid' bank to use my money" on 24 August 2009.

In fact, Bank Negara tended to create awareneness and provide guidance to public regarding the imposition of fees and charges by banking institutions via the letter. From the letter, "No fee charged for basic savings accounts" is highlighted.

In short, next time, when you want to open a saving account, do tell the bank's representative that "I only want to open a basic savings account without annual fee". If the guy tells you that there is not such account, then please ask he or she to refer the letter from Bank Negara on 27th August 2009, or call Bank Negara Customer Service Centre via 1-300-88-5465. (Link is provided in footnote of this article)

In addition, from the information provided in Maybank2u and CimbClick official websites, two types of "Basic Saving Account" are available, that are, "unlimited ATM transaction with annual fee" and "limited ATM transaction with NO annual fee). However, it is hardly for me to withdrawal cash less than 8 times from ATM annually.  (Note: I assume it is 8 times per year (worst case) since no such information is availabel from the website. Please check it from bank accordingly. Of couse, if it is 8 times per month, I see no point to pay the annual fee at all because it is hardly to withdraw cash 8 times from ATM per month)

Let's do some simple calculation:
-if the annual free ATM withdrawal cash is 8, and consequent charges is RM0.50 per ATM cash withdrawals;
-an annual fee of RM8.00 is equivalent to 16 times ATM cash withdrawals.

Therefore, for those has average ATM cash withdrawals less then 24 per years or 2 per months, applying "Basic Saving Account" of "limited ATM cash withdrawals" seems like a better option.

Of course, RM8.00 is just like a 'peanut' for most of us, but it is still more than enough to buy McDonald's Lunch Meal. So, if you just use your saving account for saving purpose with less than 8 times cash withdraw annually, why you want to treat Banker eat McDonald once yearly?

Besides, in order to earn RM8.00 from fixed deposit with interest rates of 3% p.a., you need to put RM266.66 'frozed' in a bank for one year. For normal saving account with interest rates of 0.30% p.a., you need to put RM2666.66 to compensate the expense of RM8.00.

That's all for today. More fascinating articles and sharing will be updated from time to time in Xaivier Blog. So, you are welcome to subscribe our feed, look at our sitemap or simply visit our Homepage.

Written by: Xaivier Chia

"No fee charged for basic savings accounts"
Maybank Basic Saving Account
CIMB Basic Saving Account


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