Top of main content

Types of savings

Mom and daughter working; image used for HSBC MY types of savings article page

There are lots of different savings account. Choosing the right one will depend on what you're saving for. But what if you're saving for multiple goals, both in the near future and long term?

That’s when it can be a good idea to have a a few different savings accounts, with each one for a specific type of saving. For example, you could use one savings account to cover unexpected costs, one to save up for a holiday, one to build up a home deposit, and so on.

Savings accounts tend to differ in 3 main ways:

  1. Interest
    The rate of interest you'll earn on the funds you deposit
  2. Term
    The length of time you're prepared to tie up your savings
  3. Conditions
    Whether you must make regular small deposits, or larger amounts whenever you have a surplus

Here are some common types of account, and the sorts of savings goals they can be good for:

Set Title

Account type Key features
 Good for?
Instant access savings accounts (sometimes called easy access)
 Fast or immediate access to your money, but the interest rates on offer are often very low.
 Money you don’t need for day to day expenses, but that you might need at short notice for emergency or unexpected expenses.
Regular or basic savings account
 Often come with rules about minimum monthly deposits, or maximum withdrawals, but may offer a slightly higher interest rate in return.
 Putting aside a proportion of your monthly income.
Notice accounts
 You must give notice of your intention to make a withdrawal. Depending on the account, the notice period can range from a few days to as much as 180 days. In return, they can offer more attractive interest rates.
 Putting away money to meet longer term savings goals.
Fixed rate savings (also called term deposits)
 Better interest rates than a regular savings account. Your money is ‘locked in’ and inaccessible for a fixed period of time, from a few days to several years. They usually require a minimum investment, and there will be a penalty for securing early access to your money. They offer higher interest rates than many other savings accounts.
 Depositing funds that you know you aren’t going to need for a while; can also be suitable for meeting longer term savings goals.
Investments

Comes with the risk that you might not get back what you invest. But if you’re able to set your money aside for 5 years or more, investing in funds or shares has the potential to make your money work harder than than it would in a savings account.

 

We explain the pros and cons of investing money in more detail here.

 Setting aside money you're not going to need for years, such as your retirement savings.

Set Title

Account type Instant access savings accounts (sometimes called easy access)
 Instant access savings accounts (sometimes called easy access)
Key features
 Fast or immediate access to your money, but the interest rates on offer are often very low.
 Fast or immediate access to your money, but the interest rates on offer are often very low.
Good for?
 Money you don’t need for day to day expenses, but that you might need at short notice for emergency or unexpected expenses.
 Money you don’t need for day to day expenses, but that you might need at short notice for emergency or unexpected expenses.
Account type Regular or basic savings account
 Regular or basic savings account
Key features
 Often come with rules about minimum monthly deposits, or maximum withdrawals, but may offer a slightly higher interest rate in return.
 Often come with rules about minimum monthly deposits, or maximum withdrawals, but may offer a slightly higher interest rate in return.
Good for?
 Putting aside a proportion of your monthly income.
 Putting aside a proportion of your monthly income.
Account type Notice accounts
 Notice accounts
Key features
 You must give notice of your intention to make a withdrawal. Depending on the account, the notice period can range from a few days to as much as 180 days. In return, they can offer more attractive interest rates.
 You must give notice of your intention to make a withdrawal. Depending on the account, the notice period can range from a few days to as much as 180 days. In return, they can offer more attractive interest rates.
Good for?
 Putting away money to meet longer term savings goals.
 Putting away money to meet longer term savings goals.
Account type Fixed rate savings (also called term deposits)
 Fixed rate savings (also called term deposits)
Key features
 Better interest rates than a regular savings account. Your money is ‘locked in’ and inaccessible for a fixed period of time, from a few days to several years. They usually require a minimum investment, and there will be a penalty for securing early access to your money. They offer higher interest rates than many other savings accounts.
 Better interest rates than a regular savings account. Your money is ‘locked in’ and inaccessible for a fixed period of time, from a few days to several years. They usually require a minimum investment, and there will be a penalty for securing early access to your money. They offer higher interest rates than many other savings accounts.
Good for?
 Depositing funds that you know you aren’t going to need for a while; can also be suitable for meeting longer term savings goals.
 Depositing funds that you know you aren’t going to need for a while; can also be suitable for meeting longer term savings goals.
Account type Investments
 Investments
Key features

Comes with the risk that you might not get back what you invest. But if you’re able to set your money aside for 5 years or more, investing in funds or shares has the potential to make your money work harder than than it would in a savings account.

 

We explain the pros and cons of investing money in more detail here.

Comes with the risk that you might not get back what you invest. But if you’re able to set your money aside for 5 years or more, investing in funds or shares has the potential to make your money work harder than than it would in a savings account.

 

We explain the pros and cons of investing money in more detail here.
Good for?
 Setting aside money you're not going to need for years, such as your retirement savings.
 Setting aside money you're not going to need for years, such as your retirement savings.

Ready to start saving?

Check out some of our savings accounts and see if there's one that's right for you.

And if you need more inspiration, we've got even more tips on how to build up your savings.

Back to Top  

Take the next step

Financial wellbeing

Child on woman's back; image used for HSBC MY saving strategies for life article page
Instilling good saving habits can help you met the financial goals you have outlined for yourself and your future.
Father and baby working together; image used for HSBC MY why saving is important article page
Savings is an important financial habit you can adopt to help you reach your financial goals.
A woman is sewing clothes; image used for HSBC Malaysia getting financially fit article page.
Find out about what being financially fit means.
Woman working at home; image used for HSBC Malaysia's plan for the future article page
Explore the advantages that saving for retirement early may have on your financial wellbeing.
Discover more articles Click to view article hub page