Yeah you could do that. that is called making an advanced payment, this way you dont have to think about making the commitments every month. It depends on the bank though

but why would you wnat to do that? why not just make normal monthly payments and keep the money you have in hand deposited into ASB2 (if your ASB1 already full)

this is exactly the confusing part coming from

im paying consistently for amount needed each month

but also at the same time, ayam realise ayam not been spending much and have more savings than actually expected(i cannot commit to have higher asb loans because just agreed on another commitment that causing dsr to be around 70%)

how do know my 2 banks are on same/different asb accounts?

erm, you should know if they are ASb1 or AASB2. ASB2 is quite hard to come by. What are the loan sizes? You can also look at the bank portal, look at the loan names, it will usually mention ASB or ASB2

uuu

ayam realise ayam quite dum dum in this,
save for the calculation...not part of equation

thanks sifoo

Current best rate is 4.75% p.a. for 40 years, till the age of 65 by the way

You can verify my calculations on your own using financial calculator:

1. ASBF: RM200,000, 27 years and 3 months at 3.95 p.a. to get the RM1000/m installment

After 12 months, the loan balance is RM195,829
Close the account, the certificate size is RM200,000, so you get RM4,171 cash in hand
As for your ASB distribution at 5.5%, you will get RM11,000

Total cash in hand is RM15,171, with RM12,000 capital outlay

2. FD: RM1,000 a month for 12 months at 3.5%
Keep in mind that you do not start you investment with RM12,000. You deposit RM1,000 a month, each month, with the 3.5% return calculated on a pro-rated basis for each day's balance (daily rest)
FD is somewhat beneath what I need, so if I am mistaken with the calculation, FD fans can please help me ya. And 3.5% p.a. return is somewhat average right? I can change it to 4% and it would not change anything

So total cash in hand is RM12,230, with RM12,000 capital outlay

Yes, that is how it is supposed to be. You are supposed to save money each month anyways right? Do so through ASB financing, while you pay for you financing, the RM200k (or whatever you certificate size) will earn more than than the financing rate.

For my clients in the past year, they have been paying 4.70% p.a (due to changes in the BR) on a reducing balance of RM200,000 (this loan balance reduces as you pay your installments) while earning 5.50% p.a. as distribution on the RM200,000 certificate size. If that is not "free money" I do not know what it is

ASNB app on your phone

On the app, you need to try to buy some units, then they will take you to the page where the will tell you what is your "baki boleh beli"

Do some maths, and you will know what your actual softcap is. Can ask here or any ASB threads if not sure

How they calculate the softcap actually?

Easy. The accumulation of your distribution.

1. For example, you opened your ASB account in Dec 2018, you got an ASBF for RM200,000 and it was deposited into you account on Dec 2018

2. You won't get any distribution for Jan 2019 because of the monthly-minimum balance of Dec 2018 being 0

3. In Jan 2020, you will be getting RM11,000 as your distribution. Your softcap has increased by RM11,000 now and will not reduce even if you withdraw the RM11,000 you have just earned

4. Throughout 2020, you have been leaving RM211,000 in your ASB account. In Jan 2021, the distribution was announced at 6%. You earn RM12,660. Now you softcap has further been increased by RM12,660, thus bringing your total softcap to RM23,660.

5. Your balance in now RM223,660. Suppose you withdraw RM23,660 form the account. Your balance is now RM200,000. Your softcap remains at RM23,660, which means you can deposit this much money into your account in the future if you want to

As i suspected so. This softcap is only useful for withdrawal and plan for re investment in future.

But for those who intend to keep the cash inside, then the softcap doesnt mean anything.

Yes but sometimes you would need to use this cash that you have earned through the distributions, consider it as an emergency fund. People who are not eligible for ASB have to go through FD, which has lower rate of return and locked down for months at a time to get the best rates.

We have access to this case and can use it anytime, and when we want to deposit the cash back in, we are welcome to do so. Isn't that wonderful?

Well if you put it that way. But here hoping i would never be in that tough spot till have to rely on asb fund. Once you withdraw even for one day, it will mess up the returns for next year because of lowest balance calculation.

Corect, but consider it as your emergency funds. you are supposed to have at least 6x of your salary as emergency funds anyway. Why put it elsewhere but ASB that is giving you better returns than its close alternatives?

You have both liquidity and good-returns in one. Look at the people in the ASNB Fixed-price funds, they are spamming the BUY button just to buy RM1000, RM4000, etc. units at a time. They get lower returns and NO LIQUIDITY (because once they are out, they wont be able to get back in, they need to redo the process)

Some of them work together and do direct transfer between members here, for a commission of course that ranges from 2 to 5% !!! Ada sales charge some more! They do what they can and I respect them for it

But for us that are eligible? We complain (to some extent). Hahaha. Just putting it out there, that we should feel grateful for the amenities that have been afforded to us

I do not put my emergency fund in asb though.

If its emergency case, i need the cash that second no matter the hour.

cina can financing?

That is a good call. Bank deposit with access to ATM or even just cash is more liquid than ASB. But consider staggered emergency funds, with some, like 2 months salary in savings, 4 months in ASB

Credit card can and should function as part of your emergency funds too, keep the balance low, and the limit high. You can even have an emergency card that you keep in the car or house, only for emergencies.

Depends, are you a Muslim? No kidding, Chinese Muslims can apply for both the units as well as financing.

not muslim oh, cina can apply?

I read last time you were promoting 4.85% rate.

Worth it to cancel loan and go for 4.75% rate? Does 0.1% make any significant difference minus processing fees etc?

Chinese Muslim yes, Chinese as it is, no.

There are a few criterias, including Portuguese descent, Thai descent, etc. people that have been around for quite... a while

Hey I didn't make the rules.

LIAOOOOOOOOOOOO....malaysia boleh