1. What is High Yield Savings Account?

High yield savings accounts in Malaysia offer higher interest rates (typically 3-4% APY) compared to regular savings accounts. They compound interest daily for maximum growth while keeping your funds liquid.

2. How Does the Calculator Work?

The calculator uses the daily compounding formula:

Where:

• \( A \) — Final amount (MYR)
• \( P \) — Principal investment (MYR)
• \( r \) — Annual interest rate (decimal)
• \( t \) — Time in years

Explanation: Interest is calculated daily (divided by 365) and compounded for each day over the investment period.

3. Benefits of High Yield Savings

Details: These accounts provide better returns than fixed deposits with similar security and immediate access to funds. Popular in Malaysia for emergency funds and short-term savings goals.

4. Using the Calculator

Tips: Enter principal in MYR, annual interest rate (e.g., 3.5 for 3.5%), and time period in years (can use decimals for months). All values must be positive.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between APY and interest rate?
A: APY (Annual Percentage Yield) already accounts for compounding, while the stated interest rate doesn't. This calculator uses the stated rate.

Q2: Are these accounts safe?
A: In Malaysia, they're typically covered by PIDM up to RM250,000 per depositor per bank, similar to regular savings accounts.

Q3: How often is interest paid?
A: Most Malaysian banks pay monthly, though interest compounds daily for maximum growth.

Q4: What's the minimum balance required?
A: Varies by bank - some require RM1,000 minimum, others may have higher thresholds for the best rates.

Q5: Are there withdrawal limits?
A: Usually no limits, but some accounts may require maintaining a minimum balance to earn the high yield.