Ok, i made my way to 2 banks for loan enquiries,

1 )CIMB hire purchase, 3%p.a,
for 30k principal, there will be RM4500 loan interest for 5 years,
and i will earn RM6000 in FD for 5 years @ 4%p/a.

Contra gain: 6000-4500=RM1500

2)Mach by HLB cruise control
I was told that i can deposit cash into the account to reduce the interest, up to 30%,
by putting the RM9000 into the account, i am only charged RM 2227 interest for 5 years,
which translated to 2.12%pa!

Meanwhile, the remaining RM21k in FD for 5 years @ 4%p/a. will make me RM4200.

Contra gain: 4200-2227=RM1973
any better choices, folks?

Please check with the Bank if you have loan a car before.

2.9% is flat rate per year. just make it simple. dont use EIR.

FD also by 4% per year. so.. is just as simple as 4% vs 2.9%. just that u cannot take out FD anytime to pay car loan.

that's why. best way to do is. using ur flexi house loan. you can take out your money any time. and the rate you can save in housing is at least 4.2%

Yup, the right way to count the FD interest earned is the FD amount keep on shrinking each month.

But I preferred to "scare off" people by showing the the last year real interest rate on HP.

100K 3% 5 years.

Each year interest is 3K

1st year 3K/100K = 3%
2nd year 3K /80k = 3.75% (already pay off 20K through monthly repayment)
3rd year 3K/60K = 5%
4th year 3k/40k = 7.5%
5th year 3K/20K = 15%.

See where bank earns the most profit? 

That's why they can give lower rate if the tenure is longer.
Bank actually like borrower to drag even longer, they can earn even more.

That's why, as i said. bank use EIR for back end. coz your contract with them is 5yrs example. your interest for 5years will be 5 x 2.9%. if second year you want to void contract and expect bank only earn you 2.9% for the first year. then that's not the way.

2.9% per year is as what bank already told you. and you need to fulfill the contract maturity.

try to check your own car loan.

if you said u want 5years. so 5x2.9%. is that the total amount you pay??

bone,

In the end, calculate Period that can withdraw until Future Value = 0 (Means complete withdraw)
Period = 79.31, or 79 months

i am lost count here!! how to get 79.31mth ar?? can help me understand!!

with that 4%pa compounded for 7yrs/$716.07, also cannot get 79.31mth leh!!

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