Our lives have changed drastically over the past few years. The pandemic has altered the way we work and play, and the rise of digital platforms and currencies has made us really reconsider the value of money. Some of us are just getting back on our feet and slowly starting to save up again.
To add to that, we are heading towards inflation after a period of low interest/profit rates. What can we do to ensure our money keeps working for us? How can we outrun inflation? The time is right to strategise our wealth-growing approach and better manage our finances.
Most of us keep our money in our savings accounts and don’t think much about what’s happening to it. We’ve always avoided deciding what to do with it.
These are the excuses we’ve all used, but when it comes to managing our finances, there is always no better time than now.
You might have struggled a bit to juggle your various loans/financing and/or credit cards during the last two years. If so, consolidating them will help tremendously. You’ll only have to make one payment every month. A personal financing and the outstanding balance of your credit card can be covered with a single financing, and you will end up with a lower interest/profit rate. Instant savings, and no headache! Even if you’ve been managing your various loan/financing payments every month, this is still a good way to save money and time.
Every month, you’ve been quite disciplined about not spending your entire salary, but you’re unsure of what to do with the balance. It’s been sitting in your savings account. This is the perfect opportunity to get your money to work for you.
Let’s consider the low-hanging fruit first: fixed/term deposit and savings accounts. Banks will offer competitive rates and some additional features. Look around and compare the rates and pick the best one. While the rates for fixed/term deposits will be lower than an investment fund, there is virtually no risk involved.
Utilise both fixed/term deposits and savings accounts. A fixed/term deposit is suitable if you’re looking to set aside savings for a longer tenure, but a savings account is very handy during emergencies as it doesn’t require you to lock down your money. You can withdraw whatever amount you need, whenever you need it.
At RHB, you’ll get attractive fixed/term deposit rates of up to 1.85% p.a. for a 12-month tenure. For savings accounts, RHB Smart Account/-i offers up to 2.85% p.a.
But what about inflation? MARC Ratings Bhd has forecast Malaysia’s headline inflation rate at 2.3% in 2022, which will moderate to about 2% until 2026.
While investing is a good way to counter the effects of current low rates, diversifying your investments is the best way to outrun inflation altogether and increase the value of your money in the long term.
Investing doesn’t mean you’ll have to watch the markets every day and know all the jargon. All you need to know is your risk appetite (low, medium, high) and what your goals are. Depending on your risk profile and financial goals, your Relationship Manager will help you build a well-diversified portfolio, combining various asset classes such as equities, bonds/sukuk, commodities and real estate. If you’re into socially conscious investing, there are funds based on ESG (Environment, Social and Governance) principles.
Your wealth building strategy can also include insurance/takaful. An insurance/takaful plan not only provides coverage in times of emergency; it can also act as a savings plan because you’ll pay a premium/contribution every month. Depending on the type of policy you choose, a certain amount of your monthly premium/contribution will be invested for you. Let the returns accumulate over the years so that you have a financial safety net for retirement. It’s the easiest way to let your hard-earned money grow and also to get protection. Find a plan that suits your goals i.e. retirement savings, medical coverage, saving for the kids’ education or building a legacy for your loved ones.
It keeps getting better. You’ll get immediate rewards by making the right decision to start building your wealth with RHB.
Each time you save, spend, transact or invest using our wide range of RHB products and services, you will earn RHB Loyalty Points, which you can use to redeem over 8,000 gifts and vouchers. Even using online banking to buy daily necessities will earn you points. The more RHB Loyalty Points you accumulate, the greater the rewards! Easily keep track of your Loyalty Points via RHB internet banking or mobile app.
While our banking solutions help you grow your wealth, the RHB Loyalty Points that you earn will allow you to reward yourself with any gift from our catalogue, at no extra cost. Your RHB Loyalty Points can take care of the “leisure” part of your life. Redeem your points to go on a vacation abroad, get the latest gadgets and home appliances, or get a gift for a loved one. Redeeming your points is fast and easy, with just a few clicks on our website.
Plus, look out for the 26th of every month – that’s RHB Day – and earn extra points on top of festive promotions and redeem gifts with lower Loyalty points!
As an example, a new signup for RHB Smart Account-/i will earn you 3,000 RHB Loyalty Points. If you open deposit account together with RHB Joy@Work salary account , you get up to 5,000 RHB Loyalty Points.
Smart Tip: Take up more products to accumulate more Loyalty Points! You may combine several products to meet your wealth-building goals and earn even more Loyalty Points.
It’s a perpetual Loyalty Program that you can accumulate Loyalty Points for all transactions you made with the bank moving forward. Here’s how to maximise your points earned!
From now until 30 June 2022, you can earn additional entries - on top of the perpetual Loyalty Points and stand a chance to win up to 10 million RHB Loyalty Points!
Drop by your nearest RHB branch today to find out more, or fill in your details below and our Financial Experts will get in touch. Make your money work “smarter” and “harder” for you!