Best Digital Banks in Malaysia 2025 – Rates, Perks & Safety

Digital banking in Malaysia has reached a major turning point. By 2025, Malaysians finally have access to five licensed digital banks offering higher interest rates, faster onboarding and smarter apps than most traditional banks.

If you’re wondering “Which is the best digital bank in Malaysia right now?” or comparing RYT Bank, GXBank, Boost Bank, AEON Bank and KAF Bank, this guide gives you a complete 2025 comparison — including interest / profit rates, features, fees, safety, and which bank fits different types of users (students, travellers, families, Shariah users and cashback hunters).

What Are Digital Banks in Malaysia?

Digital banks are fully licensed Malaysian banks that operate entirely online without physical branches. BNM granted five digital bank licences under its Digital Bank Framework (see official guidelines here). They offer faster onboarding, lower operating costs, and better digital experiences.

Bank Negara Malaysia (BNM) has granted five digital bank licences. As of 2025, most have launched retail products to the public, while others are rolling out in phases under BNM’s digital bank framework.

Why Malaysians Are Switching to Digital Banks

✔ Higher Interest Rates

Digital banks offer up to 4.00% p.a., compared to 0.05%–2.0% at traditional banks.

✔ Faster Onboarding

Account opening takes 5–7 minutes via eKYC.

✔ Daily Interest Crediting

Your savings grow faster compared to monthly crediting.

✔ AI-Powered Tools

Smart categories, spending alerts, budgeting, auto savings.

✔ Lower Fees

Zero annual fees, zero DuitNow fees, and 0% FX promo (RYT).

Digital Bank Reviews in Malaysia (2025)

Below is the complete breakdown of every licensed digital bank in Malaysia.

1. RYT Bank (YTL × Sea Limited)

Malaysia’s first fully AI-powered digital bank, backed by two giants:

• YTL Group (Malaysia’s major conglomerate)

• Sea Limited (Shopee & Garena parent)

RYT Bank stands out for automation, daily interest, and its dual-function Visa card.

RYT Bank Interest Rate (2025)

Key Features

Who Should Use RYT Bank?

2. GXBank (Grab × Singtel)

GXBank integrates deeply with the Grab ecosystem:

• GrabPay

• GrabRewards

• Grab rides & delivery

It focuses on simple daily banking with high stability.

GXBank Interest Rate (2025)

Key Features

Who Should Use GXBank?

3. Boost Bank (Axiata × RHB)

Boost Bank is built to serve cashback lovers and e-wallet users. It is tightly integrated with the Boost eWallet.

Boost Bank Interest Rate (2025)

Key Features

Who Should Use Boost Bank?

4. AEON Bank (AEON Credit × AEON Financial Service Japan)

AEON Bank leverages the AEON retail ecosystem — ideal for shoppers and families.

AEON Bank Interest Rate (2025)

Key Features

Who Should Use AEON Bank?

5. KAF Bank (Islamic Digital Bank)

One of Malaysia’s fully Shariah-compliant digital bank in Malaysia.

KAF Bank Profit Rate (2025)

Key Features

Who Should Use KAF Bank?

Full Comparison Tables of Digital Banks in Malaysia (2025)

Table 1: Digital Bank Interest / Profit Rate Comparison (2025)

(Latest publicly available rates & promo campaigns)

Table 2: Feature Comparison Across All Digital Banks

Table 3: Fees Comparison (2025)

Table 4: Safety & Regulation Comparison

Table 5: Which Digital Bank Is Best For? (Use-Case Comparison)

Are Digital Banks Safe in Malaysia? (2025 Guide)

Digital banking is growing fast in Malaysia — but the #1 question Malaysians still ask is:

👉 “Are digital banks safe?”

Short Answer:

✔ YES — digital banks in Malaysia are very safe, because they follow strict Bank Negara Malaysia (BNM) regulations and offer the same PIDM protection as traditional banks.

✔ Digital banks in Malaysia are highly regulated and protected
✔ All are licensed by BNM
✔ All offer PIDM protection (RM250,000)
✔ Use strong cybersecurity + AI fraud detection
✔ Safer than e-wallets, which follow lighter rules
✔ Main downside: no physical branches

If you want deeper details on fraud protection, cybersecurity standards, and PIDM rules, read our full guide: Are Digital Banks Safe in Malaysia? (2025 Full Security Guide).

How to Choose the Best Digital Bank in Malaysia (2025 Guide)

Choosing the right digital bank depends on your lifestyle, spending habits, and financial goals. While most digital banks offer daily interest, zero fees, and fast eKYC, their strengths are different.

To help you choose quickly, here is the clear and simple recommendation table for every type of Malaysian user:

Winners by Category (2025)

🥇 Best Overall Digital Bank — RYT Bank

Why: Highest effective interest (4.00%), daily crediting, best AI, debit+credit Visa, 0% FX promo.

🥇 Best for Daily Spending — GXBank

Why: Grab ecosystem, simple pockets, low fees, predictable & stable.

🥇 Best for Cashback — Boost Bank

Why: BoostUP tiers, cashback-first design, full Boost eWallet integration.

🥇 Best for Shopping & Families — AEON Bank

Why: AEON Mall ecosystem, instalments, family pockets, 3.00–3.88% p.a.

🥇 Best Islamic Digital Bank — KAF Bank

Why: Shariah-compliant, daily profit, conservative risk profile.

Final Summary — Which Digital Bank Should You Use in 2025?

FAQs — Digital Banks in Malaysia (2025)

1. Are digital banks safe in Malaysia?

Yes. All digital banks are licensed by Bank Negara Malaysia, and deposits are protected by PIDM up to RM250,000 per depositor. They also use advanced security such as AI fraud detection, encryption, and biometric login.

2. Which digital bank gives the highest interest rate in Malaysia (2025)?

RYT Bank offers the highest rate:

• Up to 4.00% p.a. (3.00% base + 1.00% bonus on the first RM20,000)

AEON (3.88%), Boost (3.60%), KAF (3.20%), and GXBank (3.0%) follow behind.

3. Do digital banks in Malaysia have a deposit limit (foundational phase)?

Yes — most Malaysian digital banks currently operate under BNM’s “foundational phase”, which includes certain limits.

4. Can foreigners or non-residents open Malaysian digital bank accounts?

It depends on the bank. Here is the general rule:

✔ Malaysians (MyKad holders)

All five digital banks accept Malaysian citizens.

✔ PR / Long-term pass holders

Most digital banks accept:

• Permanent Residents (PR)

• MM2H

• EP / SP / RP-T

• Student Visa
  …but some require Malaysian address verification.

✔ Foreigners without Malaysian documents (tourists)

Most digital banks do NOT allow non-residents to open an account.
This is due to:

• BNM KYC/AML requirements

• Need for verified Malaysian phone number + IC/passport + address

Bank-by-bank (general pattern):

• GXBank: Malaysian citizens + some long-term pass holders (subject to app verification)

• Boost Bank: Malaysian citizens only

• AEON Bank: Malaysians + selected foreign residents

• KAF Bank: Typically Malaysians, as Islamic financial KYC rules are strict

• RYT Bank: Malaysians + possibly foreigners with long-term passes (check app; still expanding)

Tip: Always check the onboarding screen — eligibility rules change frequently.

5. Are digital banks better than e-wallets for savings in Malaysia?

Digital Banks – Best for Savings

✔ Higher interest/profit rates
✔ PIDM protection up to RM250,000 per depositor
✔ Daily interest/profit crediting
✔ Full BNM digital bank licence
✔ More financial tools (AI insights, pockets, budgeting)

E-Wallets – Best for Spending

✔ Instant QR Pay, DuitNow, retail rewards
✔ Cashback / points
✔ Fast top-ups
✔ Great for ShopeePay, Boost, Touch ‘n Go eWallet users

❗ Key difference:

Digital bank savings are insured by PIDM. E-wallet balance is NOT PIDM-protected (unless kept in an underlying bank account).

6. Do digital banks in Malaysia offer credit cards? Or only debit / PayLater?

✔ Debit Cards

Most digital banks already provide a Visa / Mastercard debit card, including:

• GXBank (Visa Debit)

• Boost Bank (Debit)

• AEON Bank (Debit)

• RYT Bank (Dual debit/credit functionality)

• KAF Bank (No card yet)

✔ PayLater / Credit Line

Several digital banks offer micro-credit or PayLater features:

• RYT Bank — PayLater up to RM1,499

• Boost Bank — PayFlex / instalments

• AEON Bank — instalment ecosystem / micro-loans coming

• GXBank — no PayLater yet

• KAF Bank — no credit products (Shariah-compliant)

✔ Credit Cards

Most digital banks do not offer traditional credit cards yet.

Exception: RYT Bank

• Offers a dual-mode Visa card (acts like debit + limited credit line)

• Not a full credit card, but functions similarly for smaller transactions & online payments

7. Can I open more than one digital bank account?

Yes. Most Malaysians open 2–3 digital banks for better savings, cashback, and rewards.

8. Do digital banks have branches?

No. Digital banks operate fully online, offering support through chat, email, and help centres.