Not being anal or anythin but can u show me how u get these figures? Doin some online checkin, u should only be payin RM84.12 for a RM10,000 loan on 5.95% over 15 years. I think u counted the insurance payment too but as far as I can remember they dont need insurance for these type of loans as they hold ur ASB certificates as collateral.

And that put your yearly saving down to RM 1,009.44 and total contribution of RM15,141.60

If you put RM10,000 at start of 15 years you are guaranteed a return of RM41,772.48 as the principal is already at RM10,000 at the start so at the end of the year (assuming you buy the stock at the start of the year) your average monthly balance is RM10,000 in case they use percentages or monthly rate at 10/12=0.833%monthly to pay dividend to prevent people bumping up their investment only in the month before the interest calculation. P/S I remember my mom told me that once ASB calculated end yearly balance for interest calculation for a year and it was at 15%. They were crazy rich then I guess.

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On the other corner, assuming my calculation is correct in the first place RM84.12 monthly investment only came up to RM 1,009.44 and total investment of RM15141.60

Using the link you provided, i check how much money you can get at the end of the 15 years and the total come out at a lowly RM32,072.41. From the calculation I can see that the website assumes that the dividend is calculated right at the end of the year on the total of the account balance at that time (see my interest calculation argument).

I think someone (with better understanding of interest payable/received) to do a comparison to end all argument and stickied at the start of this thread or something.

P/S - remember that they (CIMB bank at least) used some of your monthly payment to pay off the loan principal so any interest you get from the investment or any monthly payment minus interest (+ kopi money too i guess) will be returned back to you after they sell your ASB certificate.

Example, u can get a RM10,000 loan and pay monthly payments until the end of the year and gets RM1,000 ASB interest (which would be yours)as opposed to RM1,009.44 (+10% interest at RM100.95 if they calculate the interest at the end of the year). As you are not paying interest-only loan, some of your monthly payment will be used to pay off the RM10,000 principal which will be paid back to you. The best way to see this is to look for mortgage/loan calculator with an amortization table, just an example for this scenario after 1 year you paid RM1,009.44 which RM425.88 is principal payment and the rest is the interest charged. So, at the end of the year you will get back RM1,000 from ASB and hopefully RM425.88 back from the bank after they sold your ASB certificate (but remember that this amount will be sooo much lower due to early redemption charges and of course kopi money).

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Therefore I think there is Pro and Con to Loan vs Addition and it is up to you to check and find the best loan bargain (this examples looks extreme as the interest is only calculated at 5.95% which I think is wayy too low and the ASB dividend at 10% which I think is a tad high). I think the simplest way to look at it is if the interest you are paying for the loan is greater than dividend you are getting from ASB = bad loan deal.

I am for the loans as it helps me get my investment in check as I will usually use my extra income to pay loans than to invest. Priority is Essentials>Loans>stuff(bottomless pit, hahaha)>investment.