Not worth taking the loan. Dividend aroung 8% and the loan interest is 4% for the first year and 6%-7% for the sebsequent years.

Get a copy of their prospectus.

Do you guys deposit your salary/money automatically into your ASB/ASW/ASM/ASD/ASN etc account?I just want to know how.Do I have to go to the bank and tell them to do so or I have to deal with the human resource department in my company?It's much more convenient if a portion of my salary automatically transfers to my ASB account rather than going to the bank and deposit it myself.

Pay yourself first you guys

Thanks for providing the information.But I must have RM200k in my account to do so right?I don't have that amount of money to be honest.

It is not advisable to take the loan in huge amount for example RM100k. What if you want to take another loan (house loan)? The ASB loan would be detrimental in this situation.

Another thing, when was the last time ASB made any losses or did it even happen?

If anyone of you wants to do autodebit for your ASB,ASW all you need are:

1)Photocopy of the first page of your account book (ASB,ASW) which contains all your particular.

2)Photocopy of your ic.

3)Pay slip (For government servers).

4)Approval from your employer.

For government workers, the forms must be sent to any ASNB offices or banks (If im not mistaken) but for private workers, send the form to your employer/head department.

This post has been edited by amirbashah: Jan 3 2008, 02:51 PM

Hi guys. Yesterday I was looking at an ASB loan advertisement from Maybank and noticed something. If you borrow RM20k for 5 years, at the end of the period you will get RM5k extra. I don't really quite understand. Normally you will get RM9+ if you save RM20k assuming you get 8% return per annum but if you borrow from the bank, in 5 years time you will get RM14k+ (9k+5k). I really dont understand, and could someone please explain?

Hi all. I'm just curious, why do people still insist of taking the ASB loan? If you invest the money every month rather than paying every month for the interest, you'll gain more than taking the loan. I'll give you an example.

Loan amount RM10,000.
Monthly payment if charged 5.95% interest per annum for 15 years-RM106
RM106X 180 months=RM19,080 - RM10,000 = Amount you've to pay in interest RM9,080

RM10,000 invested in ASB that gives you 10% return per annum will be RM41,772 in 15 years time.

So the actual return is RM32,692 (RM41,772 - RM9,080)

If instead you invest RM106 a month for 15 years with 10 % return per annum, the total amount will be RM43,934.

So which one is better? If I'm wrong please correct me. Thanks.

This post has been edited by amirbashah: Sep 11 2008, 02:43 PM

---

Added on September 11, 2008, 8:27 pmGuess I'm correct after all

This post has been edited by amirbashah: Sep 11 2008, 08:28 PM