ASB dividend is around 7%, TH dividend is around 5-6%, ko ambik from dividend besar letak dalam dividend kecik buat apa?

Baik bayar asb loan pakai duit sendiri je, biar dividend asb tu kumpul collect compunding interest, rugi je ambik dividend buat bayar loan.

Lol, you butthurt so badly in kopitiam until you take my post out of context from there to here? Grow up. Kibod warrior betul.

When you pay ANY loan installment, part of the amount goes to principal payment, if not how are you going to finish paying your loan?

Imagine ASB loan like a house loan. You took a house loan valued at 20k, at the end of the loan tenure, you get a house valued at 20k, right? Because part of your loan goes to paying the house (principal) value and the interest for the loan.

Haziq, any promotion for ASB loan?

Currently I have 200k ASB loan with maybank, looking for promotional rates so I can switch and add another 200k for ASB 2 loan.

CIMB promo 4.8%, Maybank promo is 4.9%. Checked 2 seconds ago at respective branch as I'm hunting for ASB 2 loan.

Maybank existing loan can appeal to get 4.9% too.

Wrong logic. You have to deduct it as you should not consider it as usable money. You HAVE to save that amount to get the dividend, if you don't save it and USE it, you're not getting the dividend, so your saving is actually a "Payment"to get the dividend.

Yes, but if you have the ability it's better to take the loan and pay using your own money and don't touch the dividend.

Maximum 200k loan with dividend untouched after 5 years can hit 100k - that is a big difference compared to 21k in 5 years.

Don't cancel it as if you're planning to pay the loan till the end the takaful would be useful to you just in case something happens - e.g, you die - then the takaful will pay the loan and your family won't be burdened by it.

And how much dividend did you get in that 3 years?

Your 4K++ is the profit la.

4.6k/23k = 20% profit cincai cincai kira, per year about 7%, so what's the problem?

If you're expecting 100% profit per year please join all those MLM, Ponzi scheme and money game

This post has been edited by xeda: Aug 18 2017, 07:03 PM

Just now u said 24k dividend and 4k++ principal surrender value, now u say 19k dividend, don't keep on changing the numbers la.

Obviously ASB loan profitability is highly dependent on your loan interest rate and the announced dividend rate, and especially how long you terminate it.

Try and understand the whole concept of ASB loan properly then you won't be caught by surprise next time.

Aiya, simple summary,

If you can save money on your own, then save money on your own. Saving money on your own is less risky and returns would also be less risky.

If you want higher return compared to saving money in asb on your own, then take asb loan, the risks is also higher, but the reward is also much higher.

Just go do the maths and see how much you can potentially earn if you manage to go through the full loan years with full discipline and without touching the dividend compared to saving on your own.

If we're gonna talk about the bank earning money off the loan, obviously they will make money off the loan la, if you don't want banks to make money then don't buy anything with loan, cars and houses all buy cash (like my mom, she doesn't want bank to make money off her, but how many of us can do that?)

ASB loan is for people who doesn't mind bank making money off them as long as they can make money too. That's why when it's no longer profitable (depends on individual when to pull the plug), you just terminate it at any time, chances are you won't lose money at all, even if you do, you don't lose that much compared to so many other investments out there that if you pull the plug earlier you could potentially lose all your capital.

You can't expect a relatively low risk investment like ASB loan to yield high return like some high risk investment like bitcoins or anything - you want high returns you'd need to do the work and bear the risk, nothing comes free in the world.

ASB loan literally is the bank giving you money to put into ASB and let's you earn part of the dividend from the bank's money, and if you decide that the dividend earned is too low, the bank will just take back their money with no penalty and no lock in period whatsoever.

Tell me where else can you find such an investment?

Think of it like a housing loan. Bank gives you a housing loan worth of 200k, you buy a house and you put the house to rent and you earn a part of the rental every year (of course you need to pay the loan using the rental that you get, right? - if normal housing loan, chances are your rental doesn't even cover the loan and you get a negative return) If you decide that the work is too much, then you just return the house to the bank and don't pay anything else.

If you ask me - prefer ASB loan compared to properties when it comes to investment (savings is another matter) - as when it comes to housing loan, the rental is pathetic now - it doesn't make sense to buy and rent properties if you have access to ASB loan.

Wrong.

Bonus is no longer calculated that way - both the bonus and the special bonus is just calculated on 1 year average, not 10 years average.

So just take your average yearly balance x 7.25% for the dividend and bonus.

For the special bonus, if you have more than 10k, then it’s just RM 100.

If less than 10k, then just whatever amount x 1%

Specially to all bankers around here, PM me.

I have 50k x 4 ASB loan with maybank - I want to terminate this and reapply a new amount of 200k x 1 for ASB and 100k x 1 for ASB 2 with the lowest rate anybody can offer.

Also, I am quite busy so might need help to handle the application/termination.

PM me with your rate/monthly payment/services offered.

This post has been edited by xeda: Jan 8 2018, 03:58 PM

Thank you for all the PMs from the bankers here.

I went with Maybank - as it is convenient for me and it’s where my salary is credited too, so auto debit is easier.

Just to update - ASB 1 with Maybank 200k @ 4.8%, 30 years tenure with around RM 7k takaful - monthly is around RM 1.1k.

ASB 2 with Maybank 100k @ 4.8%, 30 years tenure with around RM 4k takaful- monthly is around RM 520++

This post has been edited by xeda: Jan 12 2018, 07:49 PM

Takaful is not necessarily bad la, you also get back a significant portion of your takaful when you cancel it.

I cancelled a 200k loan with Maybank after 2 years before re-applying this new one and the takaful that I got back was around 3.6k + principal of 3k.

Better to have takaful as who knows even in short term you can die tomorrow in an accident - my main aim is to provide for my family/nominee - so if I die, at least they get the ASB since takaful would have paid for it. I don’t want to leave nothing to them if I die. I don’t mind paying a few hundred more a month for that, since I can afford it, and the drop in ROI by paying takaful is insignificant to me.

This post has been edited by xeda: Jan 16 2018, 10:36 AM

Next of kin doesn’t need to pay, but next of kin only gets whatever principal balance paid only, and like any other loans - the first half of the loan tenure is mostly paying the interest, so whatever principal they would get is not much compared to with takaful.

My 200k loan comes with about 7k takaful cost, the way I view it - paying 7k more just in case god forbid something happens to me, and my nominee would get the full 200k, so...why not? If I don’t pay that 7k extra, my nominee would get considerably much lower, depending on how long I’ve been paying.

Of course, most people won’t be bothered as they’re just thinking of the short term gain, quick and easy money.

You get it in cash/banked in to your bank account.

Just for everybody’s info -

I took an ASB loan 2 years ago for 200k, 5.25% rate, monthly payment of about RM 1,228 (I did 4x50k loan), all with takaful.

Just terminated early this year after 2 years, and re-applied for 200k ASB and 100k ASB 2, both with takaful and longer tenure.

I got back principal of about 700 x 4 = 2800, and got back about 1k x 4 = 4k from takaful. All in all, I count my monthly payment offset with the dividend that I get, but I gained almost 7k from principal and takaful.

Yeah, I originally thought wanted to be safe that’s why I took 50 x 4, if I can’t commit then can cancel 1 or 2 loans and keep the rest. After 2 years got used to paying the commitment, so now I took 1 loan only lo.

You can do 10k x 20 also.