Malaysia's digital banks have stopped being the new kid on the block, and their savings rates have stopped being simple, too. Ask ten Malaysians which digital bank pays the best interest and you'll get ten different half-right answers, mostly because the headline number everyone quotes has usually changed by the time it's repeated.
By the end of 2025, the country's five licensed digital banks had signed up 2.4 million customers and RM4.2 billion in deposits, according to Bank Negara Malaysia's 2025 annual report. Now that the acquisition race has cooled, the banks are tightening rates and adding conditions to protect their margins, which means the "best digital bank in Malaysia" answer from even six months ago is already stale.
Around 65% of digital bank customers so far come from underserved groups, including low-income households, gig workers and youth, which is exactly why the fine print on rates and fees matters more here than at a traditional bank. Here's what's actually true in July 2026, verified against each bank's own terms.
The five digital banks in Malaysia and why PIDM still matters
GXBank, Boost Bank, AEON Bank, Ryt Bank and KAF Digital Bank are all fully licensed by BNM, and all five are member banks of Perbadanan Insurans Deposit Malaysia (PIDM). That means eligible deposits, including savings, current accounts and fixed deposits, are protected up to RM250,000 per depositor per bank, automatically, with no claim form needed if a bank ever fails.
That protection is identical to what you get at Maybank or CIMB. What's genuinely new for 2026 is that the RM1 interbank ATM withdrawal fee, once a small selling point for app-only banks with no ATM network of their own, was scrapped nationwide from 1 July 2026. Free interbank cash withdrawals are now the industry default, not a digital bank perk, so it's no longer a reason to pick one over another.
Savings rates compared: what you actually earn right now
The listed percentage rarely tells the full story. Some banks pay a flat daily rate on everything; others park the good rate inside a separate pocket, jar or pot with its own rules.
| Bank | Basic account rate | Highest advertised rate | The catch |
|---|---|---|---|
| GXBank | 2.00% p.a. daily | 3.55% p.a. (6-month Bonus Pocket) | Early withdrawal forfeits the bonus portion |
| Boost Bank | 2.50% p.a. daily | 4.00% p.a. (BoostUP Jar) | Needs RM500/month Boost Wallet spend, RM3,000 cap |
| AEON Bank | 0.25% p.a. profit rate | 3.00% p.a. (Savings Pot, promo) | Promo ends 31 August 2026 |
| Ryt Bank | 2.05% p.a. base | 4.00% p.a. (Save Pocket bonus) | Needs 5 spend "stamps"; capped at first RM20,000 |
| KAF Digital Bank | Historical hibah, not guaranteed | 5.00% p.a. hibah on first RM2,000 | Hibah is discretionary, not a promised return |
Two of these numbers moved recently. GXBank cut its daily rate from 3% to 2% back in October 2024 after crossing 800,000 users, and Ryt Bank restructured its bonus in June 2026, dropping the guaranteed base from 3% to 2.05% while raising the bonus tier and adding a stamp-collecting requirement.
AEON Bank and KAF Digital Bank are Islamic digital banks, so their returns are structured as profit rates or hibah rather than conventional interest. Hibah, in particular, is a discretionary gift the bank may or may not pay — banks aren't allowed to promise a future hibah rate, so KAF's 5% figure is historical data, not a guarantee for your money going forward.
The fees that changed since you last checked
Two small perks that digital banks used to advertise heavily have quietly expired. GXBank's temporary waiver of its 1.2% foreign transaction fee ended in May 2026, and Ryt Bank's equivalent waiver, which only ever covered in-store overseas spending, ended in March 2026. Swipe either debit card overseas today and the standard 1.2% fee now applies.
GXBank also charges a RM12 debit card issuance fee for new cardholders, waived automatically if you keep an average balance of RM1,000 or more for the first 30 days after activation. It's a reminder that "free" digital banking still comes with terms worth reading before assuming a fee-free ride.
Best for gig workers and freelancers: GXBank
GXBank, backed by Grab, built its identity around Malaysians earning under RM4,000 a month, and its core user base skews 21 to 30 years old. FlexiCredit, its personal line of credit, approves eligible applicants in 8 to 10 minutes, with average drawdowns of RM7,500 to RM8,000.
For food delivery riders or e-hailing drivers already inside the Grab app, that integration matters more than the 2% base savings rate. If you're weighing GXBank against an e-wallet top-up habit, it's worth revisiting which e-wallet you actually need in 2026 before assuming a digital bank replaces one.
Best for SME micro-financing: Boost Bank and AEON Bank
Boost Bank, a joint venture between Axiata's Boost and RHB Bank, became the first Malaysian digital bank to offer dedicated MSME financing, with Term Loan and Revolving Credit products starting from RM50,000 and minimal documentation requirements. The Star reported Boost positioning this as closing a credit gap for small businesses that lack a formal track record with traditional banks.
AEON Bank has since followed with Shariah-compliant business financing of its own, aimed at merchants who want an Islamic structure. Neither product suits a gig worker looking for a quick personal top-up; both are built for someone running an actual small business who needs working capital, not a payday bridge.
Best for students, everyday saving and Islamic banking
If you're not chasing the highest promotional rate, the deciding factor is usually which ecosystem you're already in. AEON Bank lets users create up to 20 Savings Pots, useful for students splitting an allowance into categories, and its Islamic structure suits shoppers who already hold an AEON card.
KAF Digital Bank issues a virtual debit card with no printed card number, CVV or expiry date, a genuinely useful anti-fraud detail for students new to online banking, though it's personal-banking-only for now, with business accounts still in the pipeline.
Ryt Bank, run by YTL Digital Bank in partnership with Sea Limited (Shopee and Garena's parent), leaned on that ecosystem to become Malaysia's fastest-growing digital bank, reaching 1.2 million users within seven months of its August 2025 launch. Its bonus interest now depends on JomPAY bill payments or Ryt Card spending rather than app logins, a shift worth understanding if you're used to comparing digital banks against DuitNow features for everyday transfers.
FAQ
Are digital banks in Malaysia safe to keep savings in?
Yes. All five, GXBank, Boost Bank, AEON Bank, Ryt Bank and KAF Digital Bank, are PIDM member banks, meaning eligible deposits are protected up to RM250,000 per depositor per bank, the same coverage as any commercial bank in Malaysia.
Which digital bank has the highest guaranteed savings rate?
Among conventional, non-discretionary rates, Boost Bank's BoostUP Jar and Ryt Bank's Save Pocket bonus both currently advertise up to 4.00% p.a., though each requires meeting a monthly spending or transaction condition to unlock the full rate.
Is KAF Digital Bank's 5% hibah rate guaranteed?
No. Hibah under KAF's Qard-based Savings Account-i is a discretionary gift, not a contractual interest rate, and banks cannot advertise or promise future hibah rates. The 5% figure on the first RM2,000 is historical data only.
Which digital bank is best for a small business loan?
Boost Bank currently has the most established MSME financing track record among Malaysia's digital banks, with Term Loan and Revolving Credit products from RM50,000. AEON Bank offers a Shariah-compliant alternative for business owners who prefer an Islamic structure.
Do digital banks still waive ATM fees as a perk?
Not as a differentiator anymore. Malaysia scrapped the RM1 interbank ATM withdrawal fee nationwide from 1 July 2026, so free interbank cash withdrawals now apply across all banks, not just digital ones.
