The rate shown in the app is a projected annual rate, quoted in USD, and it is not guaranteed. It can change, and short periods can be negative.
Three things to read carefully:
- It is annual, not monthly or daily. A rate of roughly 4% per year on RM1,000 is around RM40 over a full year, not RM40 a month.
- It is quoted in USD. Your actual ringgit outcome also depends on the exchange rate over your holding period.
- It is net of fund costs but before any transaction fees you incur depositing.
ESA is designed to be competitive with high-yield savings while staying riba-free. It is not designed to beat equities.