FD need to put ur own money, the latter course is borrowed money

Then you can only earn the differential of 2.5% against the 70K, and NOT 200K. Amounting to RM1750 per year.

Still it's effortless, and on borrowed money - no harm and good too. Loan is for 15 years, and I believed the interest will 'compound back into the ASB account' over the 15 years. I say it's still a good deal.

Sorry, but I don;t get it - what has FD got to do with borrowed money ? Are you talking about loan rates ?

If you are talking about loan rates. yes, surely it will go up with BLR, but again that depends on the type of package from the bank.

Secondly, I believed if the economy inproves and the BNM raises the BLR, the ASB dividend will go up too.

The FD is just for comparison purposes. If u get a fixed ASB loan at about 5% the difference between the amount u pay off the bank and the dividend you get from the ASB is only about 3.5% (currently). Thats about the same as conventional FD rates in any bank currently. If Bank Negara raises the OPR then the bank interest rates also go up. ASB returns will not go up much in the next few years. Dont forget that the Gov is nearly broke so dont believe all that eyewash about the economy picking up.

So in considering this it would be baseless to take a bank loan to invest in ASB as compared to saving up and then investing. The loan concept only works for those who have no dicipline in saving thus even a small return is still considered acceptable.

No, Cybermaster,... one reason why some poeple can't save is not because of discipline, it's just they don;t have any money left to be saved. Sadly, there are really such people around.

Hence, for this group of people, the loan will help them to "save some money for the rainy days".

To save via FD, one must use money that comes out from own pocket.

To save using the above method, one uses other peoples' money.

Both ways will get you the 3.5% provided it is not hit by the BLR.

Well said hansel. Couldn't agree more.

Honestly.. i put my money to save in ASB monthly only RM100. By doing that, i dont know how much i will save in 15 years... After calculation, it is expected i can save more than that, but i am afraid i dont have contigency money in case of emergency. So i think this is the best for now.

cybermaster98 also got the point.. many factor to consider .. inflation.. asb dividen rate.. economic uncertainty.. etc..

Is it worth it in the long run

Well i always believe that no matter how much u earn there will always be room for savings. We should always live within our means but sadly some dont. If u can afford to pay a loan then u can also afford to save. Most ppl take ASB loans and then earn some residue interest on it but waste money in so many other ways.

I have save in AS1M already 1 year, heard that their dividen is on 31 August, until now still no news.... anyone of you got news ab out how much the interest will be?

doesnt the financial year end on 30th sept for AS1M?

think it would be announced a couple of days before the financial year end.

maybe about 6++ % dividend since its the maiden dividend declaration?

one year liao meh?

31 aug one is ASW2020

thanks joe and jack, just wait and see whether the interest is good enough or not

I am targeting the declaration of dividend to be either next week or the week before 23rd September 2010.. Hopefully the news come out soon..

I agree. Doesnt it seem strange that there is no news on this?!

How so ? Is this the first time you invested in any ASNB products ? Sometimes the dividend is only declared in the middle of the month and it's only 9/9/2010 now. May be after Raya they will announce the dividend.

about the dividend, is a cash payout or top-up into account?

This post has been edited by sotong168: Sep 9 2010, 08:11 PM

dividend on paper it is written they will pay cash if "tidak cukup unit untuk dilaburkan semula"
but so far for ASW2020 and ASM always seem to be topup to account one
not sure about ASB tough because i am not a melayu

Most of the time, it is a payout into the account.. ^^

Divided + bonus are credited into the account. By the way, not all ASB account holders are Malays. I am one such example

you are bumiputera sabah sarawak? so you're a non bumi muslim as well?
wah best of both worlds!

Yes. I am a Sabah Bumiputra and guess what ? I even have a Chinese surname And no. I am not a Muslim. I also do not practice any religion.