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Safeguarding Wealth: A Strategic Guide to Choosing Savings Spots

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In today’s era, storing money is no longer about tucking it under the mattress or into a safe deposit box, as it used to be. With currency taking on various forms beyond paper notes and coins, we need to ensure the safety of our savings. When making the decision to save money, there are several important factors to consider:

1. Sharia Compliance:

For individuals adhering to Islamic principles, ensuring that the chosen storage facility aligns with Sharia regulations is crucial. It is a priority to seek solutions that meet these requirements, unless in dire circumstances or in a non-Sharia compliant financial system.

2. Safety of Instument:

Whether in physical or digital form, the security of our savings is paramount. Is our storage adequately safeguarded? While we cannot control unforeseen threats and accidents, we can choose storage options that offer high levels of security. For instance, banking deposits regulated by BNM provide protection up to RM 250k through PIDM.

3. Transaction Charges:

There’s no free lunch; nearly all services today come with a cost. Hence, it’s essential to understand and be aware of the amount and frequency of charges imposed on our chosen storage. Opt for places with the lowest transaction fees to ensure our savings do not diminish in amount or value.

4. Returns or HIBAH:

Prioritize storage facilities that provide returns, even if they may be modest. Our savings will decrease due to service charges, in addition to the impact of inflation. At the very least, these returns can help offset charges and maintain the value of our savings in the long run.

5. Emergency Withdrawals:

We must also consider how withdrawals are facilitated for our savings during emergencies—whether they are immediate or require some time, whether it’s done physically at a counter or online. Understanding the withdrawal process during urgent times is vital knowledge, ensuring that we don’t feel desperate or stressed when in need of funds, especially in these challenging times.

By carefully considering these factors, we can make informed decisions about where and how to save our money, enhancing financial security and aligning with our current needs. Here’s to successful savings and financial growth!

Aliff Shanusi

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