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This Is Why You Should Keep Your Salary & Savings Account Separated

BY Team Loanstreet

Updated 05 Nov 2019


“Your salary has been credited to your account”

Some of us prefer to only use one account for everything - salary, savings, monthly expenses, loans and other stuff. By the end of the month, we are like, “What happened to my money?” or “Oh no, why only got RM30?”. All these are happening because we thought by having one savings account, we can manage better - WRONG!!!

The smart ones would usually choose to spread out their money to get the best deal on rates and fees. It may seem a bit mafan (it’s not, really), but why don’t you start exploring a salary account to maximise your earnings. We feel separating your salary account and savings account would be a good practise. Read on to know why.


What's covered in this article?

Wait, salary account - what’s that?   

When we Googled ‘salary account’, there’s no local content about it even after page 4. We then decided to double-check it on Google Trend but the result is nowhere near enticing. This could be because many Malaysians are still not familiar with what salary account is all about - so don’t feel left out. 

So, what is salary account? Well, the name is pretty self-explanatory. It’s a type of account where your salary gets credited. You need to be an employee to open this account because it’s particularly designed for salaried class.

Savings account, on the other hand, is an account where you should park your monthly savings. It doesn’t matter whether you have a salary or not because this type of account is open to the public. 

Oh, like that ah... Got differences meh?

Well, they’re almost the same, but not really - very much macam yes, tapi bukan. Take a look at the table below to see the differences between saving account and salary account.
  Salary Account Savings Account
Who decides to open the account? Employer or Employee Anyone
Purpose Credit of salary To encourage savings
Interest Rates Depend on banks The average interest rate paid is *1.2% p.a. (as of June 2019)
Convertibility If the salary isn’t credited for 3 consecutive months, it’ll be converted as saving account Generally, one can convert to a salary account if the bank allows
*The average interest rate is based on a comparison of 30+ savings accounts across all major banks in Malaysia.

Hmm… Why do I need to keep my salary and savings account separated?

  • Keeps you organised

There’s the money you bring in, the money that goes out to pay the bills, and the money you set aside for a rainy day. Lumping it all together into one account can make it difficult to have visibility into what’s what. If you make all your transactions from one account, it might get difficult to track your expenses at the end of the month - we’ve all been there, right? Separating your savings and salary account allows you to manage your spending better by using your salary account to pay your utility bills, etc without affecting whatever you have saved in your savings account.
  • Helps you increase savings

If you survive only on one account, then the chances of spending, splurging and impulsive shopping is very likely. With a separate salary and savings account in place, you can a set target for savings each month. If you consistently transfer your savings every month, you’ll eventually save more.
  • Lets you earn interest/profit rate

In Malaysia, the average interest paid is around 1.2% p.a.. So, if you going to have a saving account with no money in it at the end of the month, then you’re not able to take advantage of the interest/profit rate. Though the interest/profit rate is low, the saving accounts serve as the first to invest in other wealth-creating investment avenues.
  • Gives you more security

Imagine this: As usual, you only have one account for everything. If your account is hacked, there could be a risk of losing all your hard-earned money.  While the chance of this happening is low, it’s still a possibility. But, if you have two separate accounts, and this happens - the pain won’t be as excruciating.
  • Easier to get loans/financing and credit card/i

Apart from the above, your salary account may give you the upper hand when it comes to applying for loan/financing and credit card/i. This is because the bank you are applying for the facilities with, has an assurance since the salary is being credited to their bank.


Oh, okay. How to select a salary account?

Just so you know, the features and benefits of a salary account can vary with the type of account your bank offers depending on the salary. We’ve listed down some points to consider (in no particular order) when choosing a salary account to help you make the best decision.
  • Availability of ATMs - This is very important because not all banks have ATMs available everywhere, which is not very convenient. 
  • Interest/profit rate - If you’re planning to open a savings account in addition to your salary account, it’s important for you to also check the bank’s savings account interest/profit rate.
  • Customer support - Don’t forget to evaluate the bank’s customer support services provided.
  • Preferential Rates on  Financing - We’re not suggesting that you should make consumer debt as your key factor to choose a salary account bank but if it has a perk like easy to apply for a home loan/financing, personal loan/financing or credit card/i, as well as the preferential rates - why not, right?
  • Special privileges – Does the salary account automatically qualify you for Premier/Advance customer recognition and privileges based on your salary amount?

Or, look no further. Here’s what we recommend! Check out HSBC Amanah Perks@Work salary account! 

We placed all their point we shared above, and Perks@Work fits them all! With Perks@Work, you’ll gain more for your salary account compared to what has been offered by others out there. For instance, you’ll have access to HSBC's global network of ATMs in 70 countries. Plus, for your convenience, you’ll get to experience fast customer service at any HSBC and HSBC Amanah branches. You can also use the secured online or mobile banking platform to pay bills easily via JomPay to over 1,200 billers. So easy and secured liao!

On top of that, by choosing Perks@Work, you’ll be instantly recognised as an HSBC Amanah Premier / Advance account/-i holder (with no monthly fees provided the eligibility criteria is met). If you are eligible for any of these accounts, you get to enjoy the benefits offered under these two customer categories like a boss such as:
  • Premier status recognition in all countries where you bank with HSBC/HSBC Amanah
  • Instantaneous and fee-free international fund transfers between your HSBC/HSBC Amanah accounts
  • International account opening before you arrive at your destination (subject to host country approval)
  • Emergency card replacement and emergency encashment services at any HSBC/HSBC Amanah branch worldwide
  • Get a designated Premier Relationship Manager to attend to your banking needs
Additionally, you’ll also not be charged withdrawal fees at over 10,000 MEPS ATMs nationwide. And, most importantly, you’ll get preferential rates for home and personal loan/financing - yes to that!

So, what are you waiting for? Talk to your company about it or click on the link below to switch to Perks@Work today!!! Because from 1 March 2019 to 31 December 2019,  you’ll stand a chance to get a Huawei Band 3e*.  To know more, click here.

*HSBC Amanah Perks@Work 2019 Gift Offer (“Promotion”) Terms and Conditions apply. This link will open in a new window. Promotion period: 1 March 2019 – 31 December 2019. Eligible customers must meet minimum gross salary of RM5,000 and above for HSBC Amanah Advance Account-i; or RM16,500 and above for HSBC Amanah Premier Account-i. The eligible customer must also sign up for Personal Internet Banking (“PIB”) if he/she does not have PIB, have or apply for HSBC Amanah credit card-i and minimum one month salary must be credited into the participating account within 60 days from the date the participating account is opened. There is a maximum number of 9,800 Gift Items to be given out on a First Come, First Served basis; capped at 980 Gift Items every month. Eligible Customers may receive the Gift Item within one month from the date of fulfilling the requirements.

DISCLAIMER: This article is not endorsed by HSBC or HSBC Amanah. Additionally, the views, thoughts, and opinions expressed in the text belong solely to the author, and not necessarily to the author's employer, organisation, committee or other group or individual.
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About the Author

Team Loanstreet

Run by a professional human-sized team, get resourceful tips & guides from our very own library of financial articles that can help improve your financial lifestyle & make a well-informed money decision. We strive to provide you with the best service in helping you to get the most out of that DUIT!


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