I heard OCBC Premier Customer will get 4.xx % for housing loan.

Let me try to answer this, correct me if I am wrong.

Your brother loan term and interest is unknown and it is tedious to calculate.
This is because some bank loans offers BLR-2.5% throughout the loan period, some offers first 2 years -2.5% only or reducing rate first 10 years or fixed rate throughout?

A very simple and quick estimate method is find out what is his installment per month now. Call the bank and ask what will be the monthly installment if he banks in RM200k.

Current installment X
New installment Y
Saving on principal and interest = X-Y = Z
Number of outstanding months to pay = A
Total installment to pay till loan is over = Z x A
Loan amount = B
Interest paid throughout loan period = (Z-A) - B
Take this interest divide by the A = estimated monthly interest paid = C
Yearly interest saved = 12 month x C

Compare this number against the interest he has to pay you which is RM 200k at 5 % = RM 10000.

Through this way you are loosing out on the compounded interest you could have earned. But for own brother.....may be it is okay

This post has been edited by gsc: Apr 5 2013, 11:29 PM

Definitely not a win win case.
Your bro can't win because he has to pay you 5% which is more or less the term charges he has to pay for his housing loan.
You can't win either because for such high risk investment i.e. non collateral unsecured loan, 5% ROI is not worth the risk.

Better let the bank earn the 5% to prevent brothers becomes enemies in the event of default.

Thks for advise. Actually. Housing loan interest is different from fd rate. As the principal will reduce gradually and the intwrest portion is much hogher during the initial stage of loan. While I am only consider the flexi housing loan.. So collateral issue is not there as we are not settling the loan. We are nerely put in the lump sum to avoid the interest part and his monthly installment remain the sane which will enable him to settke the loan sooner. When I need the money I can also withdraw from this flexi loan acct.

the bigger reason why you don't want to do that is when yr bro and you differ in opinion in the future, e.g. you want to take money from flexi but he as the legal borrower, does not agree. or he starts to feel 5% is too much, wants to pay only 4%. awkward situation.

think of it this way: today, yr bro wants to buy a 200k prop. will you lend him 200k cash to buy so that he will save the interest and pay you interest? you become the ahlong!

other than cash comfortable and tight families, saving 0.5% or so but opening up a string of unpleasant disputes later is usually not a good idea.

You must understand the concept of effective rate. At the glance, if your bro need to pay 5% p.a effective interest rate to you, he is not winning already. On the other hand, you put yourself in a high risk investment with only 5% ROI .
Compare to EPF backed MBSB 5 years FD of 4.75%, why risk your hard earn money and brothers relationship for 0.25% extra?

There has already been very good advise given. Whatever it is, think on whether you are generous enough or can afford to forego the lump sum. In other words, when giving personal loan, please be ready for the possibilty of total writeoff.
It tskes a great man to forgive and forget.

This post has been edited by magika: Apr 6 2013, 01:15 PM

If my bonus saver due on 5th june, withdraw using bankers cheque. Does it consider a fresh fund if I bank in the cheque back to OCBC for another 3 months bonus saver? Or i need to bank the cheque into another bank and issue a other cheque to OCBC?

Hassle, yes absolutely. This is the outcome of moving the funds around to different banks at different dates earlier... taken a wrong move. I guess this is the only time for me to consolidate the 2 FDs by depositing into SmartSavers account and settle for less interest, hence a win win situation for OCBC. Precisely, one really has to be witty enough to outsmart these financiers and so in this instance I have failed miserably.

If you are looking for fund from your brother flexi home loan, you might as well deposit into FD where you are allow to either partial withdraw or withdraw agaist your FD. Other members are correct that when come to money, brotherhood may not appear ..

Only freah fund means the cheque should not cone from OCbc. You can IBG in the morning to your other bank X cuurent account and open bonus saver with your personal cheque from bank X ..

This post has been edited by gsc: Apr 6 2013, 05:55 PM

Just a quick check. Any online FD placement with auto renewal between 1-3 months?

Check out Ambank for their online fd placement.

I do not have account with ambank. Is bank like PBB, CIMB or Maybank have e-FD with auto renewal?

Has the OCBC website post the new extension to Bonus Savers up to 30 June 2013 ?

I don't see it
http://www.ocbc.com.my/assets/pdf/Accounts...5Jan2013_v4.pdf

Yesterday went to add on FD @ Mach HL. This 3rd time only they give me some stingy umbrellas gift. Anyone got any other gifts???

I would think most online FD will have a box for you to check if you want auto renewal.

+1. Agree to above.

This post has been edited by Gen-X: Apr 7 2013, 10:00 PM

Thanks for being precise!

Their website is so plain... anyway, haven't checked it for updates, but last week when I went to the bank, the staff told me there's a new promotion period from April 1st till end of June.

Yeah, the bank memang calculate from all angles, cannot outdo them, lol...
I have some questions on this offer, hope you or other forumers can help me clarify.

In regards to the Smart Saver account:
1) If I were to deposit at two different dates, it will still go to the same account, yes? Or can we have two SS accounts for two FDs?
2) As you know, once we withdraw from the account, the 2.9% will drop. So what happens for those who want to continue in the next promotion term? Meaning cannot withdraw until we decide to not continue/no more promo? If yes, then the money will be stuck in there kan?

Thanks!