But what if say a person have rm50k cash, put fd at 4.2%/year. Fd will not be touch. Fd Interest remains the same every year.

He then take rm50k car loan at 3%/year for 5 year from another bank. He is going to pay the loan using deduction from monthly salary.

At the end of 5 years, he paid finish his loan. He withdraw fd with the interest, will he make a loss or make a profit?

Sorry. I am still blur

Guys how about the scenario I posted?

I know is not a fair comparison. But how's the end result? Will one be able to get profit by doing that?

Because that is what I am planning to do in the future When I am working. If can save even a bit money, why not.

Take loan, and pay back the loan slowly and earn interest.

Isn't this like gen x's way of thinking with credit card. Put money into 1 month fd, use a credit card and at the end of 1 month, take out the fd and pay your credit card

This post has been edited by Ramjade: May 7 2015, 04:29 PM

So if one is rich enough, can one actually use a credit card to buy a car?

How about buying a car with a credit card? Is that possible?

What do you mean the rest of it? The remainder of the xdr price, the dealer will charge you 2%?