Best Accounts to GROW Your Money at 0% Risk (2025)

Summary

This video explores various options for parking idle cash to earn higher interest in Malaysia, comparing money market funds and digital banks. Key options include Mumu Cash Plus, Versa Safe, KDI, StashAway, and Touch & Go GoPlus, each offering different returns, features, and user experiences. The video highlights competitive interest rates, the flexibility of savings, and digital platforms’ investment management tools. It also covers important factors like liquidity, platform fees, and security, helping viewers choose the best account for their needs, whether they are seasoned investors or beginners.

Takeaways

• 😀 Money market funds and digital banks in Malaysia offer higher interest rates compared to fixed deposits, with no platform fees or lock-in periods.
• 😀 Money market funds are not insured by Perbadanan Insurance Deposit Malaysia (PIDM), while digital banks are, offering a greater sense of security.
• 😀 Money market funds offer fluctuating returns based on the Overnight Policy Rate (OPR) by Bank Negara Malaysia, while digital banks provide stable interest rates.
• 😀 Mumu Cash Plus offers the highest net return (around 4.3% per annum) and provides a smart feature that pulls funds automatically from the money market fund for trades.
• 😀 Versa Safe is user-friendly and offers exposure to a range of assets like REITs and gold stocks, with rewards through the 'Versa Quest' feature that can help achieve up to 9% per annum returns.
• 😀 KDI Safe and StashAway Simple offer Robo-advisory services, which automatically manage your investment portfolio based on risk levels and goals.
• 😀 Touch ‘n Go GoPlus allows users to earn interest on their e-wallet balance, with no withdrawal necessary, and features convenient payments via NFC cards.
• 😀 Rise Digital Bank offers competitive returns (3.3% per annum), and although not licensed by Bank Negara Malaysia, it remains regulated in Malaysia.
• 😀 Aon Bank and GX Bank both support overseas transactions, but their return rates differ, with Aon offering lower rates and GX Bank offering rewards like cashback and grab points.
• 😀 Boost Bank's special jars offer up to 3.3% per annum returns, with added features like linking to the Boost app for payment rewards, making it suitable for users who enjoy these perks.

Q & A

What are the main types of accounts for parking idle cash in Malaysia?

The main types of accounts include money market funds and digital bank savings accounts. These accounts are well-regulated and licensed in Malaysia, offering higher interest returns compared to traditional fixed deposits.

What is the key difference between money market funds and digital bank savings accounts?

The key difference is that money market funds are considered investments and are not secured by the Perbadanan Insurance Deposit Malaysia (PIDM), while digital bank savings accounts are typically secured by PIDM. Money market funds offer potentially higher returns, but the returns fluctuate depending on the overnight policy rate (OPR).

Are there any fees or lock-in periods for these accounts?

No, the accounts discussed in the video do not charge platform fees and have no lock-in periods, meaning users can access their funds at any time.

Which account offers the highest net return rate?

Mumu's Cash Plus offers the highest net return rate, around 4.3% per annum for its US dollar fund.

How are the interest rates calculated for these accounts?

Interest is calculated daily, based on the effective annual rate (EAR), and is compounded daily, meaning the interest adds up over time.

What is the payout frequency for interest in these accounts?

Most accounts, particularly the money market funds, offer daily payouts. Digital banks like Rise, Boost, and Aon Bank have less frequent payouts, typically weekly or monthly.

What is the withdrawal process like for these accounts?

Money market funds typically process withdrawals in 1 to 3 days, with Stash Away Simple taking 3 to 4 days. Digital banks like Rise and others offer instant withdrawals.

How does Mumu Cash Plus work for investors?

Mumu Cash Plus is a money market fund that allows users to park idle cash from their brokerage accounts. It also features a 'smart safe' tool, which automatically covers any shortfalls in the user's account by drawing funds from Cash Plus.

What are the key features of Versa Safe?

Versa Safe is a money market fund with an easy-to-use interface, and it allows users to invest in assets like REITs, gold, stocks, and other global companies. It also offers a feature called 'Versa Quest' where users can complete tasks to earn additional returns, potentially up to 9% per annum during promotional periods.

How do Robo advisors work in KDI and Stash Away?

Both KDI and Stash Away offer Robo advisors that create personalized investment portfolios based on your risk levels and financial goals. These portfolios are managed by algorithms or robots, making investing hands-off for users.

What is unique about Touch and Go Go Plus?

Touch and Go Go Plus allows users to earn interest on their e-wallet balance while also enabling easy payments at any merchant supporting Touch and Go. It is integrated with a debit card and NFC payments for added convenience.

What differentiates Rise Bank from other digital banks in Malaysia?

Rise Bank offers a higher return rate of 3.3% per annum but has a slightly higher markup charge of 2.75% for overseas transactions compared to other digital banks. It also provides features like call verification and selfie authentication for added security.

What promotional offers do Aon Bank and Boost Bank provide?

Aon Bank offers a rewards campaign that allows users to earn Aon points when spending at specific outlets, which can be converted into cash. Boost Bank's special jars offer an interest rate of up to 3.3% per annum, and users can earn rewards by spending with the Boost app.

What is the drawback of GX Bank compared to other digital banks?

GX Bank reduced its interest rate from 3% to 2% per annum starting in October 2024. However, it does not charge any markup fees for overseas transactions and offers rewards like cashback and Grab points, which could still provide value for some users.