Hi sifus,

I will be taking up a mortgage (full flexi loan) soon. I currently have some FDs, so do you think it's wise to dump say 50% of my FDs into the flexi loan account?
If yes/no, why?

Some of my friends have advised me to do so, as they think it works out cheaper in the long run in terms of paying the interest for the mortgage.

I'd appreciate it if you could share your thoughts. Thanks a lot.

If you won't be using that money, why not?
If the loan's interest are 5% and FD only 3.5%, it can help a bit.
rm10000's FD interest you only get rm350 but rm10000 loan's interest are higher than rm500.
Pardon me on not using effective rate to calculate, I'm failed on this.