I agree to the above that one should dump his excess cash into his Flexi Loan and save on interest charges if one cannot get better returns from his/her other investments (or wealth accumulation strategies). But the fact remains - he/she is still in debt and effectively his/her net worth may be still negative.

This was discussed previously in Credit Card Section, and like cherroy said, one does not really "earn" any money but save on interest charges. It's like people who got no money to settle their credit card debt and as such go for Credit Cards Balance Transfer Plans and save on the 18% interest charges. It does not mean he is getting yield of 18% interest right? If one do have the cash and no debts, then it is a different story where BT can earn a person some pocket money.

Coming back to the Flexi Loan earning thingy, one guy at one of the credit card thread mentioned he will borrow (wanted to use the word collect but that would be illegal) money from his relative and dump this said cash into his Flexi Loan and in return he offered his relative higher interest rate than FD but lower than what he is being charged Over time, I guess that can add up to quite a substantial savings in interest charges


Read post No.1 for FD Promos. And if you don't mind depositing with Bank Rakyat which is a koperasi and making record profits for the past 2-3 years, check them out.

i just place FD in KFH at 4% for 12months in condition to open gold account...
if no gold account the interest rate at 3.75%

ya lo, this is what i mean. of course, the remaining still need to charge for that 4.2% interest la.

Congratulation...for you have no more outstanding flexi loan

Thanks.

Latest UOB Promotion update

3 months - 3.5%
12 months - 3.7%

I was surprised to receive call from UOB on this promotion which I have already knew through this forum.

Thats means u can get the news faster than uob..hehe

---

Added on November 8, 2012, 5:56 pmJust to ask,im working in singapore and earning dollar,which country shud i keep my FD?coz singapore here bank only offer about 1% p.a..which i think is quite lower than in malaysia,but somebody told me that better dollars than myr coz myr value drop faster than dollars,is that true??correct me is im wrong..thanks

This post has been edited by whereis the love: Nov 8 2012, 05:56 PM

At the Monetary Policy Committee (MPC) meeting today, Bank Negara Malaysia decided to maintain the Overnight Policy Rate (OPR) at 3.00 percent.

http://www.bnm.gov.my/index.php?ch=en_pres...ac=2706&lang=en

My gut feel was wrong as I expected BNM to reduce the rate. Nonetheless, better for me to earn more $ for my emergency money.

maintain 3% is it good or bad for us?

Compare the exchange rate a year ago and see what is the difference. called that number X. (100 x X)/current exchange rate = A
Take Malaysia FD rate minus Spore FD rate (12 months) - B
If A>B keep money in S$
If A < B keep money in RM

what about the foreign currency FD in Singapore?

Currently cimb sg only offer 0.83% p.a fd..which i think much more lower than my is 3.x..now $1=rm2.5,max is 2.52,mini 2.45,whats ur opinion??

go back 2 yrs, sgd1=rm2.30, now 2.50, i.e. 4.3% p.a. - just a quick calc.
so if you had kept yr sgd fd then, you're not worse off today than keeping in rm fd just looking at the exchange rate today.

if markets are efficient and they usually are, interest rate parity says there should be no difference.
in reality, there can be differences over short periods due to very special events, e.g. the tomyum thingy in 1998.
how each one will move depends on many factors, nobody knows.
http://en.wikipedia.org/wiki/Interest_rate_parity

another consideration is where and when do you expect to spend the money in the end.
each time you change currency, a significant cost is incurred.

Iin Malaysia usually the foreign currency FD normally offers a higher rate than that of local currency. You can explore that in Singapore as S$ is performing well against other currency. But as the other member mentioned ultimately where will you spend the money is important as well as you need to take the currency exchange into consideration

Not im confusing wanna put into fd or get some stocks as investment..haizz..juz wanna a stable savings but the interest not so attracting..

You may want to consider Real Estate Investment Trust (REIT). Here are the poisons:

1) Dividend yield better than FD rates on average. Some counters as high as 7 to 8% pa. But on average, i would say 5.5%.
2) Very liquid. T+3days to cash out.
3) Low entry and exit costs.
4) Very transparent. REITs are listed in Bursa Malaysia. You are crystal clear of your investment value any time, any day.
4) Low entry capital. Few thousand riggit to "own" a small portion of rental properties like MV or Starhill. How nice.
5) stable price movement and not volatile as compare to stocks market.
6) Regulated by Securities Commission (SC)

There is a risk of capital loss though but no as high as if you buy the real property directly.
Unlike real property, you can cash out the investment within days if your gut feeling tells you the rental properties market is coming down.

I'll let other members here to list down the disadvantages of REITs.

This post has been edited by aeiou228: Nov 9 2012, 12:47 PM

If the stock market index drop to 1000 point, will it affect the price for REITS ?

Remember REIT acts like bond/fd during good times but when the economy crash or during bad times it will act like a stock. REIT in SG dropped over 70% during the last financial crisis, although continuous dividend is still being paid with yield >15%-20%. MY REITs does better, dropping to 30%-40% during the time, with yield reaching 10%. The yield is more or less following the interest rate movements and being a leveraged investment, will have even higher swing. There is a risk factor to everything and no free lunch.

Basically during meltdown, people put their brain in their ass. You must have enough holding power and do not panic.

This post has been edited by gark: Nov 9 2012, 07:17 PM

that's when you should buy more REITs !!!!
Buy low sell high works everytime ...