Right now, it seems cash is king (again).
And is the garden-variety savings account still the well taken path?
Checking on Maybank's Saving Account Rate, it yields 0.3 percent per annum for balance of zero to 24999 RM. This is the range of cash we would have in the savings account. Several thousand ringgit. Enough for monthly budgeting (I don't withdraw daily, do you?!!!) of a quarterly duration.
To beat this rate, the next best option that most consumers think of is Fixed Deposit or Invested Deposits. The yield aren't much higher. And the average is about 3%. Here your money is locked out for 3 months, 6 months or a year.
So here is a new suggestion: If you already are a stock investor who usually pays via cheque, or settling as you go, consider opening a CTA Account. Client Trust Account simply means a place to park your money for the immediate incoming settlement of stocks transaction.
The good news.
The yield is 2.4% per annum. And recently, for example, Hong Leong E-Broking has increased that interest rate to 2.6% per annum.
Two advantages for having a CTA account:
1) The actual function of the CTA - to accommodate payment of incoming outstanding settlement of stock purchases - without forgetting or penalised for stepping over T+3. Settlement are automatically deducted.
2) Getting a super-normal premium over savings interest! At 2.5% that is about ten fold of the bank savings interest rate.