EON Bank’s SaveMonthly Account
This advertisement caught my attention this morning as I was looking through The Star.
2 key things that this product claims to do are:
1) Save for your holiday, wedding or even children’s education and see your dreams fulfilled faster
2) Set aside a nest egg for your retirement and look forward confidently to the future
Would you not be interested if a financial product is able to perform the above? I certainly want my dreams fulfilled faster and I want my retirement funds built and sustained so I can look confidently into the future.
However, a check with the website shows the following rates apply.
| SaveMonthly Account (base interest) * | |
| Amount | Rates (p.a.) |
| RM 0 – RM 5,000 | 0.25% |
| RM 5,001 – RM 10,000 | 0.30% |
| RM10,001 – RM20,000 | 0.60% |
| RM 20,001 - RM50,000 | 0.80% |
| Above RM50,000 | 1.25% |
| *SaveMonthly Account Account maintains the same interest rates as Basic Savings Account | |
| Savings plan rate (interest earned on top of base interest) | |
| Amount | Rates (p.a.) |
| RM100 to RM500 | 0.20% |
| RM510 to RM1,000 | 0.40% |
| RM1,010 above | 0.60% |
| Interest is calculated daily and credited monthlyNOTE: Savings plan only available in multiple of RM10 | |
What this product gives you is basically just up to 0.6% on top of the existing base interest, which is already minimal.
I am just thinking if this is the case, how would this product be able to fulfill dreams and build retirement funds? The interest rates offered are no where matching the inflation rate we are currently experiencing.
I think if you just want a place to park your money while looking for a better opportunity, then it makes sense to put it in here since you are getting better interest rates than others. But I do not think this is the place to put your money and let it “accumulate” till your goals are met. You may find that your money has actually shrunk!
This post has 2 comments
June 2nd, 2009
Great site. I like to do a lot of financial calculations myself. Sometimes, it is really hard to plan my financial stuff. I don’t think that this saving would be a great one.
Would you like to share your posts at: ArticlePinger.com ?
June 3rd, 2009
Lee – Thanks for dropping by. Yes, I agree, it is really hard to plan finances esp. when the future is so unpredictable! Thanks for the invite, I will check it out.