If you’re a parents, then you mustn’t miss this post! Why ? Because in this post, I’ll going to share and guide you on how to earn a high interest from Malaysian banks and prepare the money for your child future education fund.

As you probably know, even a few days old baby (so called newborn) can have their own savings account, which is opened by their parents on their behalf. But do you know that, all babies and children under 18 years old, their savings account are earning a far higher interest rate than the adult and golden age?

Although their interest rates are higher, but not all the banks are giving the same high interest, some of the banks are even giving a 0%, (yes, it’s 0%) for a total balance less than few thousand Ringgit.

If you opened the account for your children with initial deposit of RM 50 and monthly deposit RM 50 (total 216 months = RM 10,800), after 18 years, their account will earn RM 3,562.07, and the total balance will be RM 14,362.07, based on the highest 3% interest rate.

initial deposit = monthly deposit x 18 years

• RM 100 monthly deposit = RM 7,124.15 interest = RM 28,724.15 total balance
• RM 150 monthly deposit = RM 10,686.22 interest = RM 43,086.22 total balance

I would say, the more money you deposit, the more interest you will earn. Let’s think in this way, if you save a RM 50 each month into your children savings account, after 18 years, when he or she completed her secondary school and entering college or university, you will have no worry for their education fund, as you’ve already prepared a good money in their savings account.

Which banks are offering the highest interest rate for children savings account? Look at the comparison chart below:

Banks	Products	Initial Deposit	Balance & Annual Interest	Note
Affin Bank	Junior Saver (Trust Account)	Unknown	below RM       1,000 – 0.90% below RM       5,000 – 1.45% below RM     20,000 – 1.90% below RM   100,000 – 2.80% below RM   500,000 – 2.85% below RM 1,000,000 – 3.10% above RM 1,000,000 – 3.38%	Free personal accident coverage – 5 times of the saving balance (up to maximum RM50,000)
Affin Islamic Bank	Junior Saver-i	Unknown	unknown	Free personal accident coverage – 5 times of the saving balance (up to maximum RM50,000) *condition – maintain RM3,000 in the account on the date of the accident.
Al Rajhi Bank	Mudharabah Children Savings Account-i	RM 50	below RM 5,000 – 37 * above RM 5,000 – 74 *	*It’s customer profit sharing ratio, not %
Alliance Bank	Alliance Save Pendidikan	RM 1	below RM 3,000 – 0.80% above RM 3,000 – 1.20% bonus interest – 10%*	*Bonus interest of 10% on total interest earned for the year if no withdrawals are made for a consecutive 12-month period 1.RM100 for UPSR, RM200 for PMR and RM300 for SPM when your child achieves straight A’s. Conditions – a minimum of RM300 must be maintained in the account for 6 consecutive months prior to announcement of results + a certified copy of the examination results slip is submitted within 14 days after announcement of results
	Alliance Buddy	RM 50	below RM     5,000 – 1.00% below RM   25,000 – 1.50% below RM 100,000 – 2.00% above RM 100,000 – 2.50% bonus interest – 10%*	*If No withdrawals are made for a consecutive 12-month period + Place a minimum total deposit of RM100 every month for 12 consecutive months 1. Complimentary Term life protection up to RM100,000 2. RM100 for UPSR, RM200 for PMR and RM300 for SPM when your child achieves straight A’s. Conditions – a minimum of RM300 must be maintained in the account for 6 consecutive months prior to announcement of results + a certified copy of the examination results slip is submitted within 14 days after announcement of results
Alliance Islamic Bank	Saving Account-i (Mudharabah)	RM 250	below RM    5,000 – 0.10% below RM   50,000 – 0.30% below RM 100,000 – 0.60% below RM 500,000 – 0.80% above RM 500,000 – 1%	–
	Saving Account-i (Wadiah)	RM 250	below RM    5,000 – 0.10% below RM   50,000 – 0.30% below RM 100,000 – 0.60% below RM 500,000 – 0.80% above RM 500,000 – 1%	–
AmBank	AmGenius	RM 1	below RM 50,000 – 3% above RM 50,000 – 1%	1. Free Personal Accident Insurance up to RM50,000 2. Free Coin Box for opening account with minimum RM300 3. Only 1 withdrawal per month
	Savers’ G.A.N.G.	RM 50	below RM  10,000 – 0.25% below RM  25,000 – 0.60% below RM  50,000 – 1% below RM 100,000 – 1.20% above RM 100,000 – 1.50%	1. Free Personal Accident Insurance up to RM50,000 2. Free Coin Box for opening account with minimum RM300 3. For below 12 years old children
AmIslamic Bank	Savers’ G.A.N.G. Account-i (Hibah)	RM 50	any amount – 1.10%	1. Free Coin Box for opening account with minimum RM300 2. For below 12 years old children
Bank Islam	Wadi Savings Account-i	RM 1	below RM   5,000 – 0.59% below RM  10,000 – 0.71% below RM  30,000 – 0.83% below RM  50,000 – 0.95% below RM 100,000 – 1.19% below RM 200,000 – 1.48% below RM 500,000 – 1.78% above RM 500,000 – 2.08%	1. For below 12 years old children 2. Zakat on savings paid by Bank Islam
Bank Muamalat	Al-Wadiah Savings Account (Trust Account)	RM 100	any amount – 0.75%	–
	BeeSTAR-i Savings Account	RM 25	below RM 2,000 – 1.50% above RM 2,000 – 2%	1-year FREE coverage of Takaful PA and Khairat upon opening of account
CIMB Bank	Junior Savers	RM 300	below RM   1,000 – 0.60% below RM   5,000 – 0.70% below RM  50,000 – 0.80% below RM 100,000 – 0.95% above RM 100,000 – 1.45%	1. Free a limited edition coin bank and a specially designed CIMB Junior recognition card 2. For below 12 years old children
Hong Leong Bank	Junior Savings Account	RM 1	below  RM 50,000 – 2.90% below RM 100,000 – 0.80% above RM 100,000 – 1.20%	–
Maybank	Savings Account-i (Trust Account)	RM 1	below RM  10,000 – 0.40% below RM  25,000 – 0.55% below RM  50,000 – 0.65% below RM 100,000 – 1.10% below RM 200,000 – 1.50% below RM 500,000 – 1.65% above RM 500,000 – 1.75%	–
	Yippie Savings Account	RM 1	below RM 50,000 – 3% above RM 50,000 – 1.45% *To enjoy these benefits, you need to maintain RM1000 in your account at all times. The higher interest rate paid is subject to only one withdrawal per month. Interest is credited twice (2) a year on 30th June and 31st December respectively. To enjoy this benefit, you will have to maintain the account for at least 6 months a year, from 1st January to 30th June and from 1st July to 31st December. If the account is not maintained for the 6-month duration as mentioned, the normal Kawanku Savings interest (from 0.30%) will apply.	1. Free Coin Box with a RM250 initial deposit 2. Free Personal Accident Insurance coverage of up to RM70,000 (based on the account balance) for you and your child 3. Cash rewards for PMR (7A – RM 100), SPM (8A – RM 200), STPM (5A/4A + MUET 6 – RM 300) and University Degree (1st Class – RM 500) – Maintain RM1,000 in the account during the examination year for PMR, SPM, STPM / A-Levels until the date of submission for Cash Award
	Yippie-i Savings Account	RM 1	below RM 50,000 – 3% above RM 50,000 – 1.45% *To enjoy these benefits, you need to maintain RM1000 in your account at all times. The higher interest rate paid is subject to only one withdrawal per month. Interest is credited twice (2) a year on 30th June and 31st December respectively. To enjoy this benefit, you will have to maintain the account for at least 6 months a year, from 1st January to 30th June and from 1st July to 31st December. If the account is not maintained for the 6-month duration as mentioned, the normal Kawanku Savings interest (from 0.30%) will apply.	1. Free Coin Box with a RM250 initial deposit 2. Free Personal Accident Insurance coverage of up to RM70,000 (based on the account balance) for you and your child 3. Cash rewards for PMR (7A – RM 100), SPM (8A – RM 200), STPM (5A/4A + MUET 6 – RM 300) and University Degree (1st Class – RM 500) – Maintain RM1,000 in the account during the examination year for PMR, SPM, STPM / A-Levels until the date of submission for Cash Award
Maybank Islamic	Savings Account-i (Trust Account)	RM 1	below RM  10,000 – 0.40% below RM  25,000 – 0.55% below RM  50,000 – 0.65% below RM 100,000 – 1.10% below RM 200,000 – 1.50% below RM 500,000 – 1.65% above RM 500,000 – 1.75%	–
	Yippie-i	RM 250	below RM 50,000 – 3% above RM 50,000 – 1.55% *To enjoy these benefits, you need to maintain RM1000 in your account at all times. The higher interest rate paid is subject to only one withdrawal per month. Interest is credited twice (2) a year on 30th June and 31st December respectively. To enjoy this benefit, you will have to maintain the account for at least 6 months a year, from 1st January to 30th June and from 1st July to 31st December. If the account is not maintained for the 6-month duration as mentioned, the normal Kawanku Savings interest (from 0.30%) will apply.	1. Free Coin Box with a RM250 initial deposit 2. Free Personal Accident Insurance coverage of up to RM70,000 (based on the account balance) for you and your child 3. Cash rewards for PMR (7A – RM 100), SPM (8A – RM 200), STPM (5A/4A + MUET 6 – RM 300) and University Degree (1st Class – RM 500) – Maintain RM1,000 in the account during the examination year for PMR, SPM, STPM / A-Levels until the date of submission for Cash Award
OCBC Bank	Savings Plan (Trust Account)	RM 500	unknown	Required a minimum monthly deposit of RM50
	Smartsavers Junior Account	RM 200	Monthly Deposit (No Withdrawal) below RM 50 – 2.50% below RM 1,000 – 2.95% above RM 1,000 – 3.10% Any withdrawal any amount – 0.50%	You must deposit monthly to receive interest, otherwise you will not be rewards any interest
	Young Savers (Trust Account)	RM 500	below RM 50,000 – 2.85% above RM 50,000 – 0.30%	1. Additional 5% on accumulated interest if no withdrawal is made for 12 calendar months starting from 31 December every year 2. Cash Awards – UPSR (5A – RM 50), PMR (7A – RM 100), SPM (8A – RM 150), STPM (4A – RM 200) – >1 year old account + submit within 2 weeks from the date of result announcement
OCBC Al-Amin Bank	Imad Young Savings Account-i (Trust Account)	RM 500	below RM 50,000 – 2.90% above RM 50,000 – 0.30%	1. Additional 0.5% on accumulated interest if no withdrawal is made for 12 calendar months starting from 31 December every year 2. Cash Awards – UPSR (5A – RM 50), PMR (7A – RM 100), SPM (8A – RM 150), STPM (4A – RM 200) – >1 year old account + submit within 2 weeks from the date of result announcement
Public Bank	Wise Savings Account	RM 1	below RM 50,000 – 2.82% above RM 50,000 – 0.53%	A bonus monthly interest of 5% on monthly interest earned if no withdrawals are made during the month.
	PB Bright Star Savings Account	RM 50	below RM 50,000 – 0.80% above RM 50,000 – 1%	Star Achiever Programme – UPSR (5A – RM 50), PMR (7A – RM 100), SPM (8A – RM 200) – Maximum 200 recipients in each category (If more, based on the highest average balance for the past 1 year) + minimum daily average balance of RM500 in the Account during theProgramme Period
	Young Achiever Savings Account	RM 500	below RM 10,000 – 0.10% below RM 30,000 – 0.30% below RM 50,000 – 0.40% below RM 75,000 – 0.80% above RM 75,000 – 1%	–
Public Islamic Bank	Wadiah Savings Account-i (Trust Account)	RM 250	below RM 3,000 – 0% below RM 10,000 – 0.10% below RM 50,000 – 0.20% below RM 100,000 – 0.45% above RM 100,000 – 0.60%	–
RHB Bank	Passbook Savings Account (Trust Account)	RM 250	below RM 10,000 – 0% below RM 20,000 – 0.10% below RM 50,000 – 0.25% below RM 100,000 – 0.30% above RM 100,000 – 1%	–
	Junior Savings Account	RM 1	below RM 100,000 – 3% above RM 100,000 – 0.70%	FREE up to RM 50,000 Personal Accident Insurance Coverage (account minimal balance of RM500)
RHB Islamic Bank	Mudharabah Savings Account-i (Trust Account)	RM 100	below RM   5,000 – 0.44% below RM  25,000 – 1.03% below RM  50,000 – 1.47% below RM 100,000 – 1.76% above RM 100,000 – 1.91%	Takaful Personal Accident protection coverage of up to RM100,000
	Junior Mudharabah Savings Account-i (Trust Account)	RM 100	below RM 100,000 – 2.95% above RM 100,000 – 0.70%	Takaful personal accident protection coverage up to RM50,000 (based on the value of your savings account and subject to a minimum average monthly balance of RM1,000)
	Wadiah Savings Account-i (Trust Account)	RM 100	below RM 1,000 – 0.10% below RM 20,000 – 0.80% above RM 20,000 – 1.25%	–
	Wadiah Student Savings Account-i (Trust Account)	RM 1	below RM 10,000 – 1% above RM 10,000 – 1.50%	–
Standard Chartered Bank	Young Savers Account	Unknown	below RM 50,000 – 2.80% above RM 50,000 – 0.25%	*No information from it’s official website, so please walk in to it’s branch for more information on its other products
United Oversea Bank (UOB)	FunSavers Account	Unknown	below RM 50,000 – 2.90% above RM 50,000 – 0.20%	–

* Interest rates are correct when I wrote this post. It may change from time to time, please refer to the particular bank.
** Trust account is the account that open by child’s parents.

According to the above comparative table, here is the 14 most highest interest paid savings account for your kids

1. RHB Bank Junior Savings <100,000 – 3%
2. AmBank Am Genius <50,000 – 3%
3. Maybank Yippie <50,000 – 3% (maintain 1,000)
4. Maybank Yippie-i <50,000 – 3% (maintain 1,000)
5. Maybank Islamic Yippie-i <50,000 – 3% (maintain 1,000)
6. RHB Islamic Bank Junior Mudharabah Savings <100,000 – 2.95%
7. OCBC Bank Smartsavers Junior >50<1,000 monthly – 2.95%
8. Hong Leong Bank Junior Savings <50,000 – 2.9%
9. OCBC Al-Amin Bank Imad Young Savings <50,000 – 2.9%
10. UOB Bank FunSavers <50,000 – 2.9%
11. OCBC Bank Young Savers <50,000 – 2.85%
12. Public Bank Wise <50,000 – 2.82%
13. Standard Chartered Bank Young Savers <50,000 – 2.8%
14. Bank Muamalat BeeSTAR <2,000 – 1.5% >2,000 – 2%

As you see, all banks listed above are very popular in Malaysia and I believe there should be at least 1 of them located near to your house or workplace. So there should be no problem for you to open an account and earn high interest.

This also raise another question that you probably will ask me, if you’ve purchase education plan from whatever insurance company or you bought the education fund from share market, and compare my this method, which one is better. I would tell you that I’ve no comment for this, you know why? Have you ever read and saw the comparison chart from any insurance companies by third party like me? No, you won’t!

Why? Because their policy is keep changing and reviewing every few months, and you can only obtain the information from your insurance agent. So I can’t compare them with you, but I do believed that ordinary method is the safest way to keep your money as your money is protected by PIDM.

To calculate your children future savings account interest rate as well as the total balance, you can try the calculator provided by Calcudora.

This post is a part of Earn and Save Money Walkthrough. For more tips and tricks, please visit page “Earn and Save Money Walkthrough“.