Loan Amount (P): RM 300,000
Loan Years: 25 years
Interest Rate: 4%

We'll calculate the monthly payment (M) using the formula:




Then, we'll find the total payment to the bank over 25 years by multiplying the monthly payment by the total number of payments (n):

Total Payment to Bank
=

Total Payment to Bank= M × n

After performing the calculations, the total interest to the bank over 25 years is approximately

RM 175,095.
Add back RM 300,000 housing loan amount,it is equal to

RM 475,095 (total loan amount pay to bank)
Vs

Fixed deposit 25 years of yearly compound
= 300,000×(1.04). 0.25
= RM 780,000
RM 780,000 - RM 300,000
= RM 480,000 (total interest earned)

Principal	Interest Earned	Maturity Amount
RM 300,000	RM 480,000	RM 780,000

Only RM 5,000 difference.....

Can someone confirm this? - Housing loan is calculated on a daily rest basis, while FD is compounded annually.

If neither the loan nor the fixed deposit is touched, will the housing loan still cost more?

Therefore, is it better to clear the housing loan first before putting money into a fixed deposit?
It is better to put your money into an EPF account to enjoy a higher interest rate than an FD.

You can still withdraw the money to pay your housing loan if the need arises when you reach age 55.

Good?
So which one better?