Guys will it be a loss if take out asb saving now?

think hlb got up to 35? even longer even better 

Seeing how this guy comment makes me being hopeful in one way..

People will start panicking and terminate their ASBF.. or deposit out all their money.. hence more distribution for the left ones in later years..

🤞🏻

I am having a conversation with an investor and we got into ASBF insurances and the effects of te 5-year coverage. In general, you get the insurance for the lower rates, but you wold be dreaming if you think that the coverage is enough to cover your outstanding over the years

My conversation with him:



A good illustration of the effect of your short-term insurance policy and how useless it is in the grand scheme of things. There would be a short fall of coverage immediately, making the insurance useless

If you are already on financing, this answer depends on the duration of your financing which will dictate the loan balance.

1. As you know, your interest-payable is based on the loan balance, if you have taken your financing for a while, your loan balance would have been reduced. For example: for a RM200,000 ASBF, for 35 years tenure, after 5 years, the loan balance would be RM189,000.

2. However, your ASBF certificate remains RM200,000 throughout the financing tenure.

3. So even if the financing rate is the same as the ASB distribution, for example, 4.8% p.a.

a) 4.85% of RM200,000 = RM9,600 distribution
b) 4.85% of RM189,000 = RM9,072 in interest payable.

This is a little more elaborate than I wish it could be, but as shown above, there is not an easy answer that would fit anyone. You need to do your own calculation.

Finally, I guess the rule of thumb would be that the financing rate should not be higher than the distribution rate

yeap, all the banks would adjust your effective rates accordingly.

Your interest rates are quoted as BR + [spread], when the BR for the particular bank changes, so will  your effective interest rate

So now your EIR is 4.75%, dropped by 0.25% from 5.00% since BSN reduced their BR by 0.25% a few months ago. The best rate that I have seen is 4.60% after BR adjustments from one of the other ASNB agent banks

note: BR = Base Rate

'Jgn terminate. Skrg Maybank ada offer.  ASB-i plus.  Boleh dpt cash tanpa kita jual sijil kita.  Refinancing anf best thing,  dpt la lowest interest rate as low as 4.7% - 4.90%.'

Read this from a facebook group.. anyone has info about this?

Internal refinance. Without moving banks.

Problem is that there are no guarantees of the rates. This is similar to mortgages. People refinance their properties (while still under a mortgage) to another bank to secure the best rates and to cash-out.

So banks would allow you to restructure your loan internally so you do not leave them for good, but most of the time, the rates that you will get are not as good as the market rate since they know it would somewhat a hassle for the customer to do an actual refinancing to another bank, and it would be costly to do so (lawyer fees, valuation, etc)

But MBB forgot that ASB is not properties. Refinancing to other banks are not difficult, just a matter of the current bank selling the funds and the new bank disbursing new funds on your behalf into your ASB account

MBB will also likely ask you to get insurances with them, so try to avoid that

After OPR cut.

RHB - Max 40 years. BR 3.50% + 1.15% = 4.70%

CIMB - Max 30 years. BR 3.75% + 0.75% = 4.50%

Ambank - Max 35 years. BR 3.85% + 0.85% = 4.70% HOWEVER, Ambank has not change its BR rate, hence people who applied before the announcement will get BR of 3.60% + 0.85% = 4.45%

Hong Leong - Max 35 years. The spread was 0.87% before the cut, i check with the bank just now they say they have not receive any update yes. If the spread remains (but unlikely) they would have effective Ir of 4.50%

Ops my bad. The agent say still can get 4.45% for ambank till 6 feb

Hi all,

Could someone help out a clueless soul here? Last year I've made a ASB loan and this will be my 1 year in. So if I want to use the dividend rolling method, I should just leave it right?

I also did an auto debit via CIMB,now will the auto debit stop once the one year is completed or do I need to manually cancel the auto debit?