QUOTE(aeiou228 @ May 19 2016, 12:27 AM)
You seriously need to go back to school to re-learn what Effective Annual Rate is all about before self inflicting more embarrassment in a public forum.
How can you compare a 2.5 months placement with a 12 months placement as a fair comparison and concluded that the extra gains from the 2.5 months placement is not worth it as compare to 12months placement ? That's incredibly silly ! Unless you came from stone-age era without any concept of TIME, it's common sense to re-invest your money in FD or other financial instruments after the first 2.5months placement completed.
The switch over from MBB @ 4%p.a. to PBB @ 5.6%p.a, i gain additional 1.6%p.a. interest.
1.6% p.a. is still 1.6% p.a. be it over 2.5 months or over 12 months, you understand ?
You can't simply stretch the 1.6% p.a. effective rate with 2.5/12 in order to tune down the gain to 0.xx% over 12 months period and use it as a comparison on a 2.5 month tenure. That's absurd and foolish comparison.
Look, stop twisting around with the silly 0.xx%, Lets talk real figures. With 300k ADB @ 1.6%p.a (bonus 5% + base 0.6%) @ 2.5 month. My extra interest gain is RM1000
within 2.5 months. Come on, prove me wrong.
You missed the whole point completely, again.
That if you don't invest for the full 12 months, you don't get the benefits of the 5% for the full 12 months.
The public? They can also see how you missed the point completely, and continue to argue about something else that I wasn't even discussing. The public can judge for themselves, so you don't really need to worry about them.
May 3 2016, 08:55 PM
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