So you’ve got some cash in your savings account. Did you know that assuming you maintain your money in a bank, most Malaysian savings accounts pay only 1 to 1.8 per cent interest each year? That does not appear to be a lot, and it is not. Investing is the most effective strategy to increase – and maybe multiply – your money. To build your funds securely, read our guide to the three most trusted investment kinds in Malaysia.

The most important thing to know about these three investments is that they are far less hazardous than investing in the stock market. Of course, this is contingent on the sort of stock market investment you make. To learn more about the differences between capital gain and dividend yield stock market investments, read this article. So, let’s get started. Here are the three most prevalent (and safest) types of investments available in Malaysia for every new investor: Unit trusts, fixed deposits (FDs), and investment-linked insurance plans are all examples of investment-linked insurance plans (ILP)

1. Unit Trust 

A unit trust is a portfolio made up of various assets such as stocks, bonds, real estate, and other types of investments. After then, the portfolio is divided into “units,” which are subsequently sold to investors (you). Your money, on the other hand, will be pooled with that of other investors. The money collected will be distributed to everyone depending on their contributions. You may invest in a variety of unit trusts in Malaysia. Amanah Saham Bumiputera (ASB), which we discussed in our previous post, is one of the most well-known. Because ASB is restricted to Malaysian Bumiputeras, you can invest in other large banks such as RHB, CIMB, and others.

2. Fixed Deposits

Consider a fixed deposit to be your money’s time capsule. You can’t get your money out of a fixed deposit account until the agreed-upon term expires. Although the fact that you can’t withdraw your own money may seem inconvenient, we prefer fixed deposits since they provide a far greater interest rate than a typical savings account – when your term finishes (yay, free money!). The length might range from one month (short-term fixed deposit) to five years (long-term fixed deposit) (long-term fixed deposit). However, how long you’re prepared to marinate your money in a fixed deposit account will affect your returns; the longer your tenure, the greater the interest rate (and your returns).

3. Investment link Insurance plan

An ILP is exactly what it sounds like: it’s an insurance protection plan that also happens to be a financial investment. However, the kind of coverage you receive is determined by your policy and the insurance riders you select, which might include everything from critical sickness to death. If you have a financial emergency during the coverage term, the insurance also permits you to withdraw a specific sum. However, how does the insurance function as an investment? A portion of your premiums will be invested, while the remainder will be used for your regular coverage. ILPs often invest in unit trust funds, which implies a fund manager will handle your money.

Do you have some interest in investment for your savings? Let’s use electronic banking services in Malaysia to achieve your dream.