AS topic.. since interest in semi flexi are calculated based on the capital u owe the bank..should i dump my part of saving into the semi flexi to tekan the interest...?

I would and I did. 100% debt free now

My 2sen.

Do it if your savings earn lower interest rates.

Do note your cashflow can be affected. I think almost all banks will charge you some fee if you decide to withdraw the excess fund - negating whatever savings you got.

I hope this is not in Serious kopitiam. The question is too shallow.
Semi fkex n flexi loans are there for interest saving purposes. And now you hv it with you for the same reason.

It is a matter of math, not a matter of if we shd dump the money in...

This post has been edited by taitianhin: Apr 27 2024, 11:26 PM

If you have no other plans for the idle money (for savings, FD and etc), then you should park it at your semi-flexi loan.

*I am not a personal finance consultant, engage one if you need appropriate advise.

if you have long term fd , yes you should.

remember that for semi flexi, u hav to inform bank in order to lower the interest, where else full flexi is auto.

if u full flexi & got on9 facility to redraw at any moment, parking your emergency or FD funds in mortgage is better than standard FD rate.

Depends on market situation. Mine is fully flexi but similar, so I basically see it as another FD, just works the opposite way (tekan interest instead of giving you dividend/interests)

Whatever effective interest rate I am charged (eg 4.25% in recent months) vs whatever else I can gain outside today (in today's context, not much). So dump dump dump!

Of course la. FD savings rate won't be higher than house loan

i did for mine.

helping yourself from being charged thousands of interest (that goes into drain) per month is a very wise decision.

Thinking of doing this as well upon full disbursement, currently still paying the progressive interest only.

What do you mean by "inform the bank to lower interest"? Inform them each time you put in money?

Some banks like MBB calculate the daily interest automatically, based on how much you transfer money into the loan account. Imo, the semi-flexi part refers to the T&C when you draw down the loan account (some impose minimum amount to withdraw, and also incurs a service charge when you draw money).

Depending on the banks rules, some require advance notice of your intention of a capital partial payment.

Ya it does charge 1 fix amount to withdraw. Unless full flexi.

I think it will automatically lower the interest.. during MCO time bank did lower my interest even i din ask for.

This post has been edited by shyan90's: Apr 28 2024, 10:07 AM

Full flexi usually incurs monthly maintenance fee. And some if not most banks impose cap on interest waiver. Semi flexi usually does not have cap.

This is true.

In my case, the monthly account fee is -RM5, and minimum "outstanding" is -RM100K so even if I deposit and make my account balance 0, I'll still incur the bare minimum interest rate charges using RM100k as the outstanding base.

Though when I did my comparison many years ago it was still worthwhile, considering that it's so much more flexible to have online and zero-notification facility without having to meet stringent requirements too. Back then the Semi-Flexi loans I compared had requirements like "must be in multiples of RM1000 to knock off principal; and must notify bank in writing/via counter". Should be better now I guess, but hasn't been comparing loans so don't know where the banking industry is taking us now

Which bank is that (the minimum 100k)?

Few years back when I was shopping for a loan, PBB's cap is up to 70% of the balance in the current account. Meaning, if you put in 100k, 30k does nothing.
HLB has 70% cap on remaining principle.

At the same time, I found out about the no capping in semi flexi loans. The withdrawal service charge (something like RM25 or 50) and minimum payment/withdrawal amount didn't appeal to me.

Mine is Maybank. They did not specify percentage-based value but hardcoded(?) value. Loan on its inception was approximately ~500K so, 20% if percentage wise?

At that point in time I only found two FULLY-FLEXI providers - Maybank and HSBC. HSBC obviously rejected the loan offer since it's a small ikan bilis package and they only goes for the big ones

I had same conclusion as you for semi-flexi (CIMB and RHB) during my shopping. That troublesome minimum RM1000's tranche and withdrawal fees put me off so I just went with Maybank. Depending on economic situation next few years I may just wipe off my loan early, or keep it as a easy drawdown loan with mortgage-level interest rates for cashflow purposes.

Maybank didn't even have any flexi loan to offer me back then. 500k pun considered ikan bilis?

For now is quite normal for 500k...maybe ikan bilis already.