Beyond Fixed Deposits & Savings Accounts – 4 Smart Ways to Make Your Money Work Harder

Recently, Malaysia’s headline inflation decreased to 1.9 per cent in June 2026, compared to 2.0 per cent in the previous month, but the index points increased to 137.1 from 134.5 (June 2025).

Here’s the question: As the cost of living continues to rise, is your money working as hard as you are?

For some Malaysians, Fixed Deposits (FDs) and savings accounts are often the first step into growing wealth. They offer familiarity, capital preservation, and predictable returns. However, relying on them exclusively may limit your availability to build long term wealth. Inflation gradually reduces purchasing power over time, which means money sitting in low-yield instruments may not grow enough to keep pace with rising costs.

Here’s 4 smart ways to make your money work harder:

Keep your cash flexible yet earning interest

Diversify your investments

Invest consistently

Say no to FOMO

Here’s 4 smart ways to make your money work harder!

1. Keep your cash working and earning interest while staying flexible
   Emergency expenses, unexpected opportunities, and short-term goals require funds that are readily accessible. Cash management products, such as money market fund-based solutions, can help investors maintain access to their funds while potentially earning returns on idle cash.

   Think of it as putting your cash to work and earning interest while keeping it available when you need it. The objective is focused on short-term investing rather than maximising returns.

2. Diversify investments across assets, not just in one market or product
   One of the most common investing mistakes is relying on a single investment, sector, or asset class. Diversification helps manage risk by spreading investments across different assets, such as equity, bonds, gold etc.
3. Invest Consistently with Dollar-Cost Averaging (DCA)
   The reality is that timing the market consistently is extremely difficult. Instead, consider adapting a Dollar-Cost Averaging (DCA) strategy that involves investing a fixed amount regularly regardless of market conditions.

   With DCA, you naturally buy more units when prices are lower and fewer units when prices are higher. Over time, this helps smooth out your average purchase price while removing the emotional stress of trying to predict market movements, because long-term wealth is often built not through perfect timing, but through disciplined investing over many years.

4. Keep your feelings out of it
   Don’t let market swings drive your investment decisions. Stay focused on your long-term goals and stick to your investment plan. Consistency and patience often matter more than trying to react to every market move.

Long-term wealth isn’t built in silos. It grows when your liquidity and your investments work together. You need a diversified exposure to build wealth, but you also need liquid cash as solid assurance when the market dips.

With KDI, investors can build long-term wealth by putting their cash reserves and their investments to work together, and get rewarded:

KDI Save: Earn up to 3.88% p.a.¹ interest rate with a RM 5,000 KDI Invest Balance, for up to RM 50, 000 in KDI Save. Credited daily.

KDI Invest: An AI- powered investment tool that invests across multiple global asset classes, based on your risk profile. As of July 2026, KDI Invest has recorded a 12-month performance for up to 12.7%²

What’s More? Earn up to 6.5% p.a³ in KDI Save now with the latest KDI Invest Deposit Programme.

Need help? Whatsapp our Customer Service team to learn more https://wa.me/60162995351

¹KDI Save Terms & Conditions apply

²The performance data presented is based on the USD returns on KDI Invest Balanced Portfolio for the trailing twelve-month (TTM) period ending July 2026. Past performance is not indicative of future results. This advertisement has not been reviewed by the Securities Commission Malaysia.

³Programme Terms & Conditions apply

This advertisement has not been reviewed by the Securities Commission Malaysia.

Disclaimer

Kenanga Digital Investing (“KDI”) is licensed by the Securities Commission of Malaysia as a Digital Investment Management Company. KDI is authorised to carry out the business of fund management blending innovative technology into automated portfolio management services offered to clients under a license issued pursuant to Schedule 2 of the Capital Markets Services Act (CMSA) 2007.

Investment involves risk, including the possible loss of capital you invest. Past performance does not indicate future performance. Historical returns, expected returns, and probability projections are provided for informational and illustrative purposes, and may not reflect actual future performance. KDI does not assume any fiduciary responsibility or any liability for any consequences, financial or otherwise, arising from any transaction in reliance on such information. Investors should rely on their own evaluation or consult an independent financial, accounting, tax, legal or other professional advisers to access the merits and risks before investing.

Any forward-looking statements, predictions, projections or forecast on the economy, stock market, bond market or economic trends of the markets contained in this material are subject to the market influences and contingent upon matters outside the control of KDI and therefore may not be realised in the future. No representation is made as to the completeness and adequacy of the information to make an informed decision.

Neither the information, nor any opinion, contained in this article constitutes a promotion, recommendation, solicitation, invitation by KDI or its affiliates to buy or sell any securities, investment schemes or other financial instruments or services, nor shall any security, collective investment scheme, or other financial instruments or services be offered or sold to any person in any jurisdiction in which such offer, solicitation, purchase, or sale would be unlawful under the securities laws of such jurisdiction. This is not intended to be an invitation or offer made to the public to subscribe for any financial product or other transaction.

This information has not been reviewed by the Securities Commission of Malaysia.