Share with u my method...

With 12K, I split:
3K for 3 months
3K for 6 months
3K for 9 months
3K for 12 months

When the 3 months FD mature, renew to 12 months
When the 6 months FD mature, renew to 12 months

So that u will have a 12-M FD maturing every 3 months

isnt it better to dump the rm12k emergency funds into the housing loan which is flexible? can withdraw with notice to banks within a few days or some have atm card to withdraw anytime?

Overly liquid may not be a good thing...later IPhone 6 come out, IPad come out, GF wants to go Bali...

Yes, but you have to calculate any fees charged by bank for withdrawal... e.g. some banks will charge certain amount if you withdraw the excess payment, e.g. RM25 per withdrawal.

So assuming your prop loan interest rate is 4.4%, AND it is daily rest calculation, then I think it is better to put extra funds into the loan account because every RM1000 you put in 'saves' you RM3.67 per month, vs earning FD of RM2.54 per month (assuming 3.05% rate, monthly FD). I use this method

However, you need to consider the RM25 charge, so if you're putting in more or think you will not touch the funds for a bit longer, then it's worth it to reduce the home loan using this method but yet still have liquid funds, e.g.

Scenario 1: RM50000 excess funds put in saves RM183 per month vs RM127 earned via FD. The difference is already more than RM25 which is what you have to pay should you need to take out any portion of the RM50k

Scenario 2: RM10000 excess funds put in for 3 months, difference per month is RM36.67-RM25.41 = RM11.26, over 3 months it's RM33.78, again it's more than the RM25 withdrawal fee.

Seems like you guys can help people financial. I want to share my financial too if you guys can give opinion.

gross salary = Rm2200
net salary = rm1958

commitment

Dad's car loan (sharing with siblings) = RM100
give parents = RM100
Unifi = RM149
Phone bill (Celcom) = RM113 (contract end in July)
PTPTN = RM100 (around 2k left)
Personal loan = RM183 (4.5 years)
Astro = RM50
Parking fee = RM70
Part time degree = RM1500/semester (3 months)

Total = RM865
I drive to work and my office is only 8 mins from my house. Usually my car's petrol I put RM70 can last for 1.5 week. I can only managed to save RM500 per month. But at the end of the month I ended up to use my savings to cover expenses like food/ petrol/ cigarettes until pay day.

My personal loan is killing me actually. Regret for applying it. Sigh...

Basically, i have no savings, no car, no property, have ASB but not active.

The IBBM pdf explains it all, also do check out your own car hire purchase documents. In one of the documentation (normally the carbon copy one), you will see details of the loan, total amount, and most important of all the APR. That is the true cost of that loan... not the simple flat rate interest.

Very simple scenario you can imagine, if you have RM100,000 and you want to buy a car - they are offering flat rate interest of 2.5%. Sounds like a good deal, instead of paying cash for the car, take the loan and with the RM100k, put in FD earning 3.05% interest. In the end you make money still cause car loan only 2.5% but FD 3.05%, right?

Wrong. If you calculate properly (remember you need to withdraw the loan installment amount from the 100k FD every month to repay the car loan) you will see that you actually lose money so how can that be? It's because the interest rate quoted is not the same (like talking mm vs cm) and the 2.5% is actually about 4.5% APR which is more than the FD 3.05%. (Again, IBBM pdf has all the explanation and details, but for simple quick calculation, flat rate x 1.85 would give you the rough APR.)

Go check out your own car hire purchase documents and you will see. Here's an example... flat rate 4.4% but in actual fact it's actually APR 8.19%

your example is the same thing lah... they offer you loan at 4.xx% (like car loan) but as you've calculated it's effective rate 9.xx%.

same goes for car loan... exact same principle..

ya i understand wat u trying to say but wat the reason that make it like dat?