LOL.. Then how much are you expecting in return for a month from FD?

sorry wahai wahai expert semua...

the current issue now is to teach us the calculation of FD...and not teach us what to do with our money...

thanks for your help...

edit: yeah,i kinda embarrass my secondary school.

then can you suggest the correct calculation for 1 month with 3.1%interest rate and 12 month with 3.7% interest rate FD?with 10k investment?
for us?

hhm.... if like that, i think satu kali FD alot will b better.... see this

6month FD
satu kali rm60000 -> 60000 x 3.5/100x0.5 = 1050

each month FD 10000 for 6 month
10000x 3.1/100 x 31/365( or use 1/12)=26.33
so, after 6 month = 158 onli!!!

diffrent ab 892!!!

http://www1.uob.com.my/cgi-bin/calculator/term_deposit.cgi

this link is useful

lowyat82 is correct

dunno how 2 calculate but can earn few k a month( what job is that, just wonder no offense )

This post has been edited by hotlink: Aug 12 2006, 10:36 AM


Attached thumbnail(s)

I did. Refer to my previous post.

@geminist

i refresh bc at d front of this thread and saw that acat u buy two MF

wanna ask does both ur fund is ab to cover d expenses of anual fee and also service charges?

any money go in

if u feel its too private u can pm me...thanks

Hi Folks,

Let's make something very clear here. I am assuming you are putting money into FD for 6 months.

Case (A) -> you are putting money into 6 months FD

Case (B) -> You are putting money into 1 month FD and you are doing auto-renewal. Your 1 month FD roll into a new 1 month FD every month automatically with the interest. You are taking the money out after 6 months to make a fair comparison. I am ignoring the number of days in a month to make a simpler comparison.


Now, I will calculate very slowly.
At time 0, you have $10,000.
Atfer month 1, you have interest of 0.031/12 = 0.0258
With 10,000, you earn 10,000 * 0.0258 = $25.80

After month 1, you have $10,025.80. Now, you auto-renew into a new 1 month FD at 3.1% again. Your principal is at $10,025.80 now

After month 2, you earn interest of

$10,025.80 * 0.0258 = $25.87

After month 2, you have $10,025.80 + $25.87 = $10,051.67
And so on...

Let's call the principal as P
Annual interest rate as I
Number of months as N

The formula for amount after N months with one month FD is

P * ( 1 + I / N ) ^ N

Dreamer

This post has been edited by dreamer101: Aug 12 2006, 10:32 AM

You are not even using the same amount of principal (60K versus 10K) for comparison..


Dreamer

This post has been edited by dreamer101: Aug 12 2006, 10:36 AM

Ah.. I was replying the same thingy and about to hit the post button before I saw your reply. Thanks for clarifying.

Hope this helps.

Your calculation for 6 months is way too off.

Principal - RM10,000 (10k will always be 10k no matter how many months you put into FD)

i left out d interest

the calculator link is quite usefull but is it accurate?does it take into account of auto renewal as dreamer mention?
or compounding interest etc?

no but u can do it urself.

first time: u put 10000 then u get 10025.83
second time : u put 10025.83 then u will get 10051.73

just do it urself.

awww..... sorry ... my mistake....it shud b each of it FD for 6 month....

so, its shud b same money... i mean each of it earns 175 -> 175x 6 =1050

hmmm i bump to this statement from last time forummer.... wats ur opinion....

That's y unit trust grow faster nowadays. still remember last time i queue for around 1 hour for ASW2020, no yet my turn the fund already full.

Lowyat82,

Anybody that read a bit more about personal finance will not make that kind of sweeping statement. The smartest statement that anyone can make is "it depends".

For examples, there are at least 3 buckets of money

1) Money that you use for normal expense. You keep this in a checking account

2) Your emergency fund. Money for 3 to 6 months of expenses. Some times, you may even keep 12 months or more if you think a recession is coming. This bucket of money are put in a safe place and earn a bit of interest like FD

3) Money for long term investment

Normally, you need to have (2) before you start thinking about (3). And, (3) is where you may put money into unit trusts and etc..

I know I am not smart enough to play in Malaysia stock market. So, the only risky invetsment that I do in Malaysia is one banking stock that I can trust. It pays dividend much higher than FD. But, I have money in (1) and (2) so I can take the risk.

Dreamer

This post has been edited by dreamer101: Aug 12 2006, 11:41 AM

Lowyat82,

The inflation > interest thing is a bunch of BS anyhow. Inflation is measured as per a normal average human being.

1) Nobody is a normal average human being. So, if you are frugal, inflation may affect you less than other people. If you pay off your car and house, it will affect you even less.

2) You have to think like "Rich Dad, Poor Dad". It is all about cash flow.

Let's say you spend $30K per year. If your salary plus investment income is $36K, you have 6K extra to invest every year. If you put the money into FD, it will generate more cash flow for you. If you keep this up, your cash flow will grow and eventually you will be well off. There are people that I know that they only save money, buy house and FD. They are doing fine too.

As long as your cash flow is positive and you invest your excess cash flow for asset ( things that generate cash flow as per RDPD), you will be fine in the long run. You might be slow but you are steady.

I am not saying whether you should or should not buy Malaysian unit trust. I am saying I know that I am not smart enough to invest in Malaysian unit trust. It is not right for me.

Dreamer

This post has been edited by dreamer101: Aug 12 2006, 01:11 PM

ok.. thanks for ur comment... btw, does "Rich Dad, Poor Dad" got electronic version? last time my fren recommend taht book to me... but i dun read it >.<'





can tell more ab banking stock? wats taht? something like shares?