A split-type air conditioning and heat pump system an indoor unit, an outdoor unit and an energy efficient arrangement. The indoor unit includes an indoor housing having an indoor air inlet, and an indoor heat exchanger. The outdoor unit includes an outdoor housing, a compressor, an outdoor heat exchanger and a fan unit. The energy efficient arrangement includes an energy saving heat exchanger supported in the indoor housing and connected to the indoor heat exchanger and the outdoor heat exchanger. The energy saving heat exchanger is positioned between the indoor air inlet and the indoor heat exchanger so that air from an indoor space is arranged to pass through the energy saving heat exchanger before reaching the indoor heat exchanger.