goolie,

A) FD

You put in $100 and you get 3.7%

B) ASB loan

You put in $0 aka NOTHING and you get 1% to 2%.

Do you understand the difference?  It is FREE MONEY.

Dreamer

---

Added on April 6, 2008, 7:49 pm

ding_dong,

1) Shop around for the lowest rate.

2) If you assume that ASB dividend rate is higher than the loan rate, it is worth it.

3) You need some extra money to cover the 1 year worth of payment since ASB pay dividend yearly.

Dreamer

Fixed Deposit.

Yup a friend of mine work in banking firm might as well unable to explain to me how the interest calculation he only provide the schedule table and when i asking the calculation formula, i gave me the formula i say wow song long and complex. the interest calculated isn't fix monthly. i wonder sometimes higher sometimes lower. if you read back this thread start from the very beginning you'll may found their provided calculation isn't accurate. other than you follow respective banks' interest schedule and it may change from time to time.

---

Added on December 11, 2012, 7:21 am

as far as i know ASB loan you can only take out the dividend not the loan amount until you fully settle your loan repayment caused your asb passbook all you can see is your own deposit $ and dividend except the loan amount.

BLR = Base Leading Rate

Your Simpan sendiri term here not FD right ?
Not really true, it depend how you manage your investment

---

Added on December 11, 2012, 7:25 am

Oops my mistake wrongly spell

Ulysses,

yes, it do. it will be based on your salary range. by the way, are you a pure Chinese ?

Ulysses,

Reduce your repayment so that you can maximum your return, preferably 10 years for small amount of ASB loan.

Ciahcra,

If you select a repayment period that stretch too long, you're paying the banks more interest due to the basic lending rate (blr). therefore, legally give them more return, as the borrowers itself feel not comfortable with the monthly repayment, mostly due to the amount that's too large. most borrowers choose to paid it by stretching the period so that they can afford to paid the installment amounts. In short term, probably you will be suffer for the repayment and not enough to use, but in long term, it will be an advantage, since asb loan have at least 8% dividend per year. you're taking more interest at the end, rather than give your interest legally to the banks and compounding into larger amounts. eg, calculate the repayment table and interest alone for how much the banks gonna to eat your money for long terms such as property. with simple interest, let say 25 year monthly installment, by using a financial calculator. you would have to paid another interest, that's like buying two apartment and giving the bank one.

Cannot simply do like that, either cancel the loan or make full settlement. If you using Maybank Islamic loan, you can cancel the previous loan & resubmit new application with your desire need.

For my pov, it better doing longest term with higher limit but that also depend with your repayment capability.