1. yes. but you have to deposit into the loan account manually as the automatic standing instructions will not deduct more than the monthly installments

2. since you can invest in ASB, use the additional money to get more money. any investments that generate returns higher than the interest charged by the ASB loan. one example is to invest in AS1M (bumi quota still available) and gives return of 6.7%

One question on the AS1M, if I have ASB account, will they count me into bumi quota straight away?
AS1M book will be different for different category? Will it state whether it is under which quota?

if you qualify for ASB, you will qualify for bumiputra quota for AS1M, ASW2020 (finished) & ASM funds

one of my client is a convert and is able to invest in ASM and ASW2020 for bumi quota

Ok. Cool. Because I am of the special case, ASN need to do verification on my background as I am a Chinese. I managed to get ASM through my mother bumi status.

for no answer no 1, say i deposit 50k into the loan acc.. the bank will readjust the monthly installments or it will stay the same? i just got to know asb loan is like house flexi loan..

this one i'm not too sure, but i think the bank will maintain the monthly installments unless you request for adjustments

but i'll give you a scenario:


let's start with a 200k loan (actually loan amount dosn't matter in thsi example), and you have 50k cash

let's assume your financing rate is BLR - 1.6%

and BLR = 6.6%

thus, the effective interest rate = 5.0%


1. REDUCE PRINCIPAL

Current Principal: 200k
Reduce: 50k
New Principal: RM 150k

Interest charged for 1 month based on previous principal balance: 5.0% / 12 * 200,000 = RM833
Interest charged for 1 month based on new principal balance: 5.0% / 12 * 150,000 = RM625

Interest saved: RM 208


2. OPEN UP ANOTHER INVESTMENT

AS1M: dividend = 6.7% (2013)

Dividend earned over 1 month period on a 50k deposit: 6.7* / 12 * 50,000 = RM 279


you earn RM279 in one month if you invest in AS1M, while you only save RM 208 in the same month if you reduce the principal

multiply the RM 71 x tenure period = ??

of course this is tricky, and you haven't even included the compounding dividend effect will increase your earning, while reducing principal will decrease your savings


again, this is just a rough calculations. many variable are ommitted in the calculations. this is just a simplified calculations to see which is more beneficial in terms of ringgit and cents

definitely i will put the money into as1m.. 6.7% > 5%.. i will check with my banker for the ASB loan thing..

beside reduction of the principal , their is one lump sump 34 k interest saving based on illustration below:

Loan 200 k , lump sum paymnet 50k. tenure 15 year , mthly pymt rm 1499.50

Loan Amortization Schedule
Loan Amortized at 4.2%


Payment Payment Principal
Date Number Amount Principal Interest Balance

Opening Balance RM200,000.00

4/10/2013 1 RM1,499.50 RM799.50 RM700.00 RM199,200.50
4/11/2013 2 RM1,499.50 RM802.30 RM697.20 RM198,398.20
4/12/2013 3 RM1,499.50 RM805.11 RM694.39 RM197,593.09
4/1/2014 4 RM1,499.50 RM807.92 RM691.58 RM196,785.17
4/2/2014 5 RM1,499.50 RM810.75 RM688.75 RM195,974.42
4/3/2014 6 RM1,499.50 RM813.59 RM685.91 RM195,160.83
4/4/2014 7 RM1,499.50 RM816.44 RM683.06 RM194,344.39
4/5/2014 8 RM1,499.50 RM819.29 RM680.21 RM193,525.10
4/6/2014 9 RM1,499.50 RM822.16 RM677.34 RM192,702.94
4/7/2014 10 RM1,499.50 RM825.04 RM674.46 RM191,877.90
4/8/2014 11 RM1,499.50 RM827.93 RM671.57 RM191,049.97
4/9/2014 12 RM1,499.50 RM830.83 RM668.67 RM190,219.14
4/10/2014 13 RM1,499.50 RM833.73 RM665.77 RM189,385.41
4/11/2014 14 RM1,499.50 RM836.65 RM662.85 RM188,548.76
4/12/2014 15 RM1,499.50 RM839.58 RM659.92 RM187,709.18
4/1/2015 16 RM1,499.50 RM842.52 RM656.98 RM186,866.66
4/2/2015 17 RM1,499.50 RM845.47 RM654.03 RM186,021.19
4/3/2015 18 RM1,499.50 RM848.43 RM651.07 RM185,172.76
4/4/2015 19 RM1,499.50 RM851.40 RM648.10 RM184,321.36
4/5/2015 20 RM1,499.50 RM854.38 RM645.12 RM183,466.98
4/6/2015 21 RM1,499.50 RM857.37 RM642.13 RM182,609.61
4/7/2015 22 RM1,499.50 RM860.37 RM639.13 RM181,749.24
4/8/2015 23 RM1,499.50 RM863.38 RM636.12 RM180,885.86
4/9/2015 24 RM1,499.50 RM866.40 RM633.10 RM180,019.46
4/10/2015 25 RM1,499.50 RM869.43 RM630.07 RM179,150.03
4/11/2015 26 RM1,499.50 RM872.47 RM627.03 RM178,277.56
4/12/2015 27 RM1,499.50 RM875.53 RM623.97 RM177,402.03
4/1/2016 28 RM1,499.50 RM878.59 RM620.91 RM176,523.44
4/2/2016 29 RM1,499.50 RM881.67 RM617.83 RM175,641.77
4/3/2016 30 RM1,499.50 RM884.75 RM614.75 RM174,757.02
4/4/2016 31 RM1,499.50 RM887.85 RM611.65 RM173,869.17
4/5/2016 32 RM1,499.50 RM890.96 RM608.54 RM172,978.21
4/6/2016 33 RM1,499.50 RM894.08 RM605.42 RM172,084.13
4/7/2016 34 RM1,499.50 RM897.21 RM602.29 RM171,186.92
4/8/2016 35 RM1,499.50 RM900.35 RM599.15 RM170,286.57
4/9/2016 36 RM1,499.50 RM903.50 RM596.00 RM169,383.07
4/10/2016 37 RM1,499.50 RM906.66 RM592.84 RM168,476.41
4/11/2016 38 RM1,499.50 RM909.83 RM589.67 RM167,566.58
4/12/2016 39 RM1,499.50 RM913.02 RM586.48 RM166,653.56
4/1/2017 40 RM1,499.50 RM916.21 RM583.29 RM165,737.35
4/2/2017 41 RM1,499.50 RM919.42 RM580.08 RM164,817.93
4/3/2017 42 RM1,499.50 RM922.64 RM576.86 RM163,895.29
4/4/2017 43 RM1,499.50 RM925.87 RM573.63 RM162,969.42
4/5/2017 44 RM1,499.50 RM929.11 RM570.39 RM162,040.31
4/6/2017 45 RM1,499.50 RM932.36 RM567.14 RM161,107.95
4/7/2017 46 RM1,499.50 RM935.62 RM563.88 RM160,172.33
4/8/2017 47 RM1,499.50 RM938.90 RM560.60 RM159,233.43
4/9/2017 48 RM1,499.50 RM942.18 RM557.32 RM158,291.25
4/10/2017 49 RM1,499.50 RM945.48 RM554.02 RM157,345.77
4/11/2017 50 RM1,499.50 RM948.79 RM550.71 RM156,396.98
4/12/2017 51 RM1,499.50 RM952.11 RM547.39 RM155,444.87
4/1/2018 52 RM1,499.50 RM955.44 RM544.06 RM154,489.43
4/2/2018 53 RM1,499.50 RM958.79 RM540.71 RM153,530.64
4/3/2018 54 RM1,499.50 RM962.14 RM537.36 RM152,568.50
4/4/2018 55 RM1,499.50 RM965.51 RM533.99 RM151,602.99
4/5/2018 56 RM1,499.50 RM968.89 RM530.61 RM150,634.10----------- reduce 50k then interest accumulated above need not pay for 56 pymt
4/6/2018 57 RM1,499.50 RM972.28 RM527.22 RM149,661.82
4/7/2018 58 RM1,499.50 RM975.68 RM523.82 RM148,686.14
4/8/2018 59 RM1,499.50 RM979.10 RM520.40 RM147,707.04
4/9/2018 60 RM1,499.50 RM982.53 RM516.97 RM146,724.51
4/10/2018 61 RM1,499.50 RM985.96 RM513.54 RM145,738.55
4/11/2018 62 RM1,499.50 RM989.42 RM510.08 RM144,749.13
4/12/2018 63 RM1,499.50 RM992.88 RM506.62 RM143,756.25
4/1/2019 64 RM1,499.50 RM996.35 RM503.15 RM142,759.90
4/2/2019 65 RM1,499.50 RM999.84 RM499.66 RM141,760.06
4/3/2019 66 RM1,499.50 RM1,003.34 RM496.16 RM140,756.72
4/4/2019 67 RM1,499.50 RM1,006.85 RM492.65 RM139,749.87
4/5/2019 68 RM1,499.50 RM1,010.38 RM489.12 RM138,739.49
4/6/2019 69 RM1,499.50 RM1,013.91 RM485.59 RM137,725.58
4/7/2019 70 RM1,499.50 RM1,017.46 RM482.04 RM136,708.12
4/8/2019 71 RM1,499.50 RM1,021.02 RM478.48 RM135,687.10
4/9/2019 72 RM1,499.50 RM1,024.60 RM474.90 RM134,662.50
4/10/2019 73 RM1,499.50 RM1,028.18 RM471.32 RM133,634.32
4/11/2019 74 RM1,499.50 RM1,031.78 RM467.72 RM132,602.54
4/12/2019 75 RM1,499.50 RM1,035.39 RM464.11 RM131,567.15
4/1/2020 76 RM1,499.50 RM1,039.01 RM460.49 RM130,528.14
4/2/2020 77 RM1,499.50 RM1,042.65 RM456.85 RM129,485.49
4/3/2020 78 RM1,499.50 RM1,046.30 RM453.20 RM128,439.19
4/4/2020 79 RM1,499.50 RM1,049.96 RM449.54 RM127,389.23
4/5/2020 80 RM1,499.50 RM1,053.64 RM445.86 RM126,335.59
4/6/2020 81 RM1,499.50 RM1,057.33 RM442.17 RM125,278.26
4/7/2020 82 RM1,499.50 RM1,061.03 RM438.47 RM124,217.23
4/8/2020 83 RM1,499.50 RM1,064.74 RM434.76 RM123,152.49
4/9/2020 84 RM1,499.50 RM1,068.47 RM431.03 RM122,084.02
4/10/2020 85 RM1,499.50 RM1,072.21 RM427.29 RM121,011.81
4/11/2020 86 RM1,499.50 RM1,075.96 RM423.54 RM119,935.85
4/12/2020 87 RM1,499.50 RM1,079.72 RM419.78 RM118,856.13
4/1/2021 88 RM1,499.50 RM1,083.50 RM416.00 RM117,772.63
4/2/2021 89 RM1,499.50 RM1,087.30 RM412.20 RM116,685.33
4/3/2021 90 RM1,499.50 RM1,091.10 RM408.40 RM115,594.23
4/4/2021 91 RM1,499.50 RM1,094.92 RM404.58 RM114,499.31
4/5/2021 92 RM1,499.50 RM1,098.75 RM400.75 RM113,400.56
4/6/2021 93 RM1,499.50 RM1,102.60 RM396.90 RM112,297.96
4/7/2021 94 RM1,499.50 RM1,106.46 RM393.04 RM111,191.50
4/8/2021 95 RM1,499.50 RM1,110.33 RM389.17 RM110,081.17
4/9/2021 96 RM1,499.50 RM1,114.22 RM385.28 RM108,966.95
4/10/2021 97 RM1,499.50 RM1,118.12 RM381.38 RM107,848.83
4/11/2021 98 RM1,499.50 RM1,122.03 RM377.47 RM106,726.80
4/12/2021 99 RM1,499.50 RM1,125.96 RM373.54 RM105,600.84
4/1/2022 100 RM1,499.50 RM1,129.90 RM369.60 RM104,470.94
4/2/2022 101 RM1,499.50 RM1,133.85 RM365.65 RM103,337.09
4/3/2022 102 RM1,499.50 RM1,137.82 RM361.68 RM102,199.27
4/4/2022 103 RM1,499.50 RM1,141.80 RM357.70 RM101,057.47
4/5/2022 104 RM1,499.50 RM1,145.80 RM353.70 RM99,911.67
4/6/2022 105 RM1,499.50 RM1,149.81 RM349.69 RM98,761.86
4/7/2022 106 RM1,499.50 RM1,153.83 RM345.67 RM97,608.03
4/8/2022 107 RM1,499.50 RM1,157.87 RM341.63 RM96,450.16
4/9/2022 108 RM1,499.50 RM1,161.92 RM337.58 RM95,288.24
4/10/2022 109 RM1,499.50 RM1,165.99 RM333.51 RM94,122.25
4/11/2022 110 RM1,499.50 RM1,170.07 RM329.43 RM92,952.18
4/12/2022 111 RM1,499.50 RM1,174.17 RM325.33 RM91,778.01
4/1/2023 112 RM1,499.50 RM1,178.28 RM321.22 RM90,599.73
4/2/2023 113 RM1,499.50 RM1,182.40 RM317.10 RM89,417.33
4/3/2023 114 RM1,499.50 RM1,186.54 RM312.96 RM88,230.79
4/4/2023 115 RM1,499.50 RM1,190.69 RM308.81 RM87,040.10
4/5/2023 116 RM1,499.50 RM1,194.86 RM304.64 RM85,845.24
4/6/2023 117 RM1,499.50 RM1,199.04 RM300.46 RM84,646.20
4/7/2023 118 RM1,499.50 RM1,203.24 RM296.26 RM83,442.96
4/8/2023 119 RM1,499.50 RM1,207.45 RM292.05 RM82,235.51
4/9/2023 120 RM1,499.50 RM1,211.68 RM287.82 RM81,023.83
4/10/2023 121 RM1,499.50 RM1,215.92 RM283.58 RM79,807.91
4/11/2023 122 RM1,499.50 RM1,220.17 RM279.33 RM78,587.74
4/12/2023 123 RM1,499.50 RM1,224.44 RM275.06 RM77,363.30
4/1/2024 124 RM1,499.50 RM1,228.73 RM270.77 RM76,134.57
4/2/2024 125 RM1,499.50 RM1,233.03 RM266.47 RM74,901.54
4/3/2024 126 RM1,499.50 RM1,237.34 RM262.16 RM73,664.20
4/4/2024 127 RM1,499.50 RM1,241.68 RM257.82 RM72,422.52
4/5/2024 128 RM1,499.50 RM1,246.02 RM253.48 RM71,176.50
4/6/2024 129 RM1,499.50 RM1,250.38 RM249.12 RM69,926.12
4/7/2024 130 RM1,499.50 RM1,254.76 RM244.74 RM68,671.36
4/8/2024 131 RM1,499.50 RM1,259.15 RM240.35 RM67,412.21
4/9/2024 132 RM1,499.50 RM1,263.56 RM235.94 RM66,148.65
4/10/2024 133 RM1,499.50 RM1,267.98 RM231.52 RM64,880.67
4/11/2024 134 RM1,499.50 RM1,272.42 RM227.08 RM63,608.25
4/12/2024 135 RM1,499.50 RM1,276.87 RM222.63 RM62,331.38
4/1/2025 136 RM1,499.50 RM1,281.34 RM218.16 RM61,050.04
4/2/2025 137 RM1,499.50 RM1,285.82 RM213.68 RM59,764.22
4/3/2025 138 RM1,499.50 RM1,290.33 RM209.17 RM58,473.89
4/4/2025 139 RM1,499.50 RM1,294.84 RM204.66 RM57,179.05
4/5/2025 140 RM1,499.50 RM1,299.37 RM200.13 RM55,879.68
4/6/2025 141 RM1,499.50 RM1,303.92 RM195.58 RM54,575.76
4/7/2025 142 RM1,499.50 RM1,308.48 RM191.02 RM53,267.28
4/8/2025 143 RM1,499.50 RM1,313.06 RM186.44 RM51,954.22
4/9/2025 144 RM1,499.50 RM1,317.66 RM181.84 RM50,636.56
4/10/2025 145 RM1,499.50 RM1,322.27 RM177.23 RM49,314.29
4/11/2025 146 RM1,499.50 RM1,326.90 RM172.60 RM47,987.39
4/12/2025 147 RM1,499.50 RM1,331.54 RM167.96 RM46,655.85
4/1/2026 148 RM1,499.50 RM1,336.20 RM163.30 RM45,319.65
4/2/2026 149 RM1,499.50 RM1,340.88 RM158.62 RM43,978.77
4/3/2026 150 RM1,499.50 RM1,345.57 RM153.93 RM42,633.20
4/4/2026 151 RM1,499.50 RM1,350.28 RM149.22 RM41,282.92
4/5/2026 152 RM1,499.50 RM1,355.01 RM144.49 RM39,927.91
4/6/2026 153 RM1,499.50 RM1,359.75 RM139.75 RM38,568.16
4/7/2026 154 RM1,499.50 RM1,364.51 RM134.99 RM37,203.65
4/8/2026 155 RM1,499.50 RM1,369.29 RM130.21 RM35,834.36
4/9/2026 156 RM1,499.50 RM1,374.08 RM125.42 RM34,460.28
4/10/2026 157 RM1,499.50 RM1,378.89 RM120.61 RM33,081.39
4/11/2026 158 RM1,499.50 RM1,383.72 RM115.78 RM31,697.67
4/12/2026 159 RM1,499.50 RM1,388.56 RM110.94 RM30,309.11
4/1/2027 160 RM1,499.50 RM1,393.42 RM106.08 RM28,915.69
4/2/2027 161 RM1,499.50 RM1,398.30 RM101.20 RM27,517.39
4/3/2027 162 RM1,499.50 RM1,403.19 RM96.31 RM26,114.20
4/4/2027 163 RM1,499.50 RM1,408.10 RM91.40 RM24,706.10
4/5/2027 164 RM1,499.50 RM1,413.03 RM86.47 RM23,293.07
4/6/2027 165 RM1,499.50 RM1,417.97 RM81.53 RM21,875.10
4/7/2027 166 RM1,499.50 RM1,422.94 RM76.56 RM20,452.16
4/8/2027 167 RM1,499.50 RM1,427.92 RM71.58 RM19,024.24
4/9/2027 168 RM1,499.50 RM1,432.92 RM66.58 RM17,591.32
4/10/2027 169 RM1,499.50 RM1,437.93 RM61.57 RM16,153.39
4/11/2027 170 RM1,499.50 RM1,442.96 RM56.54 RM14,710.43
4/12/2027 171 RM1,499.50 RM1,448.01 RM51.49 RM13,262.42
4/1/2028 172 RM1,499.50 RM1,453.08 RM46.42 RM11,809.34
4/2/2028 173 RM1,499.50 RM1,458.17 RM41.33 RM10,351.17
4/3/2028 174 RM1,499.50 RM1,463.27 RM36.23 RM8,887.90
4/4/2028 175 RM1,499.50 RM1,468.39 RM31.11 RM7,419.51
4/5/2028 176 RM1,499.50 RM1,473.53 RM25.97 RM5,945.98
4/6/2028 177 RM1,499.50 RM1,478.69 RM20.81 RM4,467.29
4/7/2028 178 RM1,499.50 RM1,483.86 RM15.64 RM2,983.43
4/8/2028 179 RM1,499.50 RM1,489.06 RM10.44 RM1,494.37
4/9/2028 180 RM1,499.60 RM1,494.37 RM5.23 RM0.00

GRAND TOTAL RM269,910.10 RM200,000.00 RM69,910.10 RM0.00

new interest RM 35229

new last payment date is on january 2024

however you lost the opportunity cost .It depend on individual requirement

This post has been edited by myhvictor: Oct 4 2013, 08:50 AM

that is a very detailed calculation. but how much interest is saved? is it 34.7k? (69,910 - 35,229)

i noticed you only put in 50k on year 5, so i made a simulation on AS1M compounding dividend for 10 years

Dividend 6.7
Year
1 50,000
2 53,350
3 56,924
4 60,738
5 64,808
6 69,150
7 73,783
8 78,726
9 84,001
10 89,629


you get 39.6k dividend (89,629 - 50,000)

am i correct in this calculations?

Do share if you have any info ya.

Got one FD due and went to try my luck for AS1M, ASW2020 & ASM.

Not a single unit available. Tough luck.

Hope for better luck next time. Help! Help!

I know the feeling, it's very frustrated. Not many are withdrawing now

Try on last week of d month
Usually holders will withdraw coz $ is running low
Holders usually won't withdraw beginning of d month coz they just rec'd salary
This is my game plan

Your statement make logical sense. Why I didn't think about it earlier

Anyway thank for the tipsy

tried many many time... non bumi seems nv withdraw.. hahaha

you are right

You didn't consider inflation rate , as 50K now is not equivalent to 50k 10 year later

based on 3% inflation rate the 95K only worth 71k after 10 year

Went thru d same xperience
If u want a piece of fixed pricing, just continue to try

i am interested in your last statement. many of us would have overlooked the inflation factor

simplifying things up, the dividends generated for 10 years would "only worth" 21k? (71k - 50k)

doesn't this mean that reducing the principal will be the more logical choice? it'd save you rm 34k vs rm 21k?


this is getting very interesting.

keep on trying, no harm right?

Non-bumi only withdraws when there's very2 important needs only, not for fun or enjoyment / entertainment purpose. Some people I know not even "touch" their ASx money for years, only adding & collecting dividend. True Story

yea, the inflation rare play very important role. That's why not many ppl playing FD.