If you’re a parents, then you mustn’t miss this post! Why ? Because in this post, I’ll going to share and guide you on how to earn a high interest from Malaysian banks and prepare the money for your child future education fund.
As you probably know, even a few days old baby (so called newborn) can have their own savings account, which is opened by their parents on their behalf. But do you know that, all babies and children under 18 years old, their savings account are earning a far higher interest rate than the adult and golden age?
Although their interest rates are higher, but not all the banks are giving the same high interest, some of the banks are even giving a 0%, (yes, it’s 0%) for a total balance less than few thousand Ringgit.
If you opened the account for your children with initial deposit of RM 50 and monthly deposit RM 50 (total 216 months = RM 10,800), after 18 years, their account will earn RM 3,562.07, and the total balance will be RM 14,362.07, based on the highest 3% interest rate.
initial deposit = monthly deposit x 18 years
- RM 100 monthly deposit = RM 7,124.15 interest = RM 28,724.15 total balance
- RM 150 monthly deposit = RM 10,686.22 interest = RM 43,086.22 total balance
I would say, the more money you deposit, the more interest you will earn. Let’s think in this way, if you save a RM 50 each month into your children savings account, after 18 years, when he or she completed her secondary school and entering college or university, you will have no worry for their education fund, as you’ve already prepared a good money in their savings account.
Which banks are offering the highest interest rate for children savings account? Look at the comparison chart below: Continue reading Earn High Interest from your Children Savings Accounts