Of course

But in case there are, why not

Citibank gives selected customers 0% for 3 months. If you want a year long programme, get an Affin Bank card

Hey affin is kinda cool.. With 0% for 12 months, am looking for the nitty gritty details such as annual fee (free) and approval fee(havent found...)

They do have "Early Settlement Fee of RM250"... means I have to stretch the balance to 12 months ?

I think it's fine since it's 0% anyway It's just spreading your installment throughout a longer period without having to pay anything extra - no harm on doing that.

@clawhammer,
Except U probably think U haf much more cash to spend for that month and end up buying other stuff.

Ok, I've sorta browsed through the new rules. Yeah it doesn't seem as if it's going to be v good for those who's owing lots of $ to the bank but for those who remains to make prompt payment, the 20-day interest free period is still available

Trust me, there are more people owing the bank than those that doesn't It's a common problem even in countries like the UK.

@clawhammer,
I know! I suppose this is one of the measures taken to curb what's taking place in the US?! *grins* Ok Ok.. I'll let U people do all ur ranting cause I'm nice

Lte me put a simple illustration.
Say charge is 6% per annum which equates to 0.5% per month.
Balance transfer for 6 months.
RM5,000 transfered.
Min charge after 1st month = RM5,000*5% = RM250
One pays min amount thus leaving the balance RM4,750
2nd month = RM4,750+0.5% = RM4773.75 & min pay is RM238.69
3rd month follows.
......
So calculation goes on provided one doesn't swipe the card for anything else.

If one does do that....than a rather complicated calculation kicks in. Say same example with additional RM1,000 swiped.
Min charge after 1st month = RM6,000*5% = RM300
One pays min amount thus leaving the balance RM5,700
Now comes the complication. Say the payment one made 70% goes to BT and 30% goes to new swipe the equation would be:
BT --> 5,000 - 210 = 4,790 (interest = 4,790*0.5% = 23.95)
Normal --> 1,000 - 90 = 910 (interest = 910*1.5% = 13.65)
Total --> 4,790 + 910 + 23.95 + 13.65 = RM5,737.60 (Min pay = 286.88)
.........
3rd month
Say customer paid RM300 again
BT --> 4,790 - 210 = 4,580 (interest = 4,580*0.5% = 22.90)
Normal --> (910 + 23.95 + 13.65) - 90 = 857.760 (interest = 857.60*1.5% = 12.86)
Total --> 4,580 + 857.60 + 22.90 + 12.86 = RM5,473.36 (Min pay = 273.67)

-----------------
Notice the calculation on interest and how it is added back to the retail aka normal line which is being charged 1.5% or 18% per annum.

Disclaimer: This is only a simple illustration similar. Haven't really go into the depth of hierarchy of payment from different banks which usually 1st is to clear installment (EPP), 2nd interest, 3rd cash, 4th BT, 5th only principal balance.
Basically no one really realise that one is being charge the normal 1.5% on top of the BT interest rate as time drags by. Unless if one is able to clear up what he owes within the stipulated time frame than the bank wouldn't be able to earn much.

@b00n
Thanks for the calculation. I appreciate it . The debt is approx 2x of our salary, so we're thinking of putting it aside first without letting it grow 1.5% month. A 6 months 0% would be perfect - just need to find a bank that provides that

bare in mind that usually when 0% is offered, there would most probably be a one time processing fee (usually based on balance). If it's with interest, than most of the time processing fees are waived or kept at the minimal.

b00n, I think you have to find out more before concluding and the balance transfer calculation is different from one bank to other so your calculation is not correct for all cases. Some examples below:

Citibank
- Your balance transfer amount will be part of your credit limit and if you make purchases on the current month and when payment is made, it will first offset your finance charges/fees, balance transfer outstanding then purchases

HSBC
- Everything the same as Citibank BUT it will offset your finance charges/fees, purchases then only balance transfer outstanding (which makes more sense)

Hong Leong/Maybank, etc
- They open up a new "Balance Transfer" account within your credit card and you are subjected to pay a minimum amount based on the outstanding. Whether you make purchases or not, it has no correlation here.

As for the 0% interest balance transfer, your statement is also not true because in the case of Citibank, it is ZERO charges and no early settlement but for certain banks, they might. Hence as I've mentioned, it is all case by case basis and depending on the bank

Good to know that Shouldnt that be FULL payment instead of PROMPT payment (which can mean anything from the $25 min payment to the full amt)? (the HSBC http://www.hsbc.com.my/1/PA_1_1_S5/content...erest_rates.pdf announcement is beating around the bush)

clawhammer.....trust me as I'm in the banking industry.
The term "offset" doesn't really meant "offsetting" all of your balance.
In every bank, there's this payment hierarchy model which I've illustrated. Mostly according to this:
1st is to clear installment (EPP), 2nd interest, 3rd cash, 4th BT, 5th only principal balance.
Which you've shown HSBC is different.
i.e. A higher percentage would always go to Installment i.e. EPP first. Than another percentage goes to Interest, than cash so forth.

One example whereby during my younger days when I'm still naive...I took out cash advance. I basically phone in to ask RHB before I took asking them would they offset my cash advance first and their reply is YES. Thus the next day, I basically paid up my cash advance which I still left some outstanding balance in there. When the monthly statement comes, I was puzzled with the interest as it's extremely high.
I basically call them up and my answer received is as I explained above. A higher percentage goes to clear my cash advance (not all). Than some left over percentage to clear my other retail outstanding. I basically feck them up saying that the previous officer told me otherwise. Thus I asked them to tell me what is my current balance and immediately I paid off everything.

As for the case with HLB, does one pay to 2 separate accounts or only paying to one. If one pays only to one....high possibility it would work as per my illustration also.

This post has been edited by b00n: May 27 2008, 02:36 PM

I'm also working in a bank, I own credit cards and I make IT systems for the bank Do you think I can be wrong on the business rules part? Apart from that, I use balance transfer services as well. I was talking about the main 3 types of expenditure, not inclusive of easy payment scheme. Even if it does, it varies from bank to bank and there is no doubts about it.

In order to clarify, why not you call the customer care number of HSBC and other banks then let me know. Alternatively, you can browse through the terms and conditions in their website to have a thorough understanding. Do you think I could be wrong when I've used the services before?

As for your example of the "Cash Advance", it doesn't matter which one it offsets first because the finance charges for "Cash Advance" is calculated on the day of the transaction itself.

If you have RM1,000 outstanding today and lets say you take RM1,000 cash advance, the interest will be based on 1.5% per annum of RM2,000 from today onwards. As such, why would it matter if you pay RM1,000 to offset your retail or cash advance?

RM2000 - RM1000 Cash Advance = RM1000 + 1.5%
RM2000 - RM1000 Retail = RM1000 + 1.5%

It's the same thing

Ugh.. All this mathematical equations are giving me a headache

@ceo684,
It's applicable for prompt payment; the tiered interest rates are applicable for those who pay promptly. The only difference is for those who doesn't pay the entire full sum, of which interest rates are then calculated on a daily basis from date of transaction based on either 15%, 17% or 18%.

Current interest rates are also calculated on daily basis now @ 18% per annum. I like to know if the interest rates are calculated after the 20 interest-free day or from date of transaction for now.

Also, I made a mistake. All banks start implementing this regulation from 1 July 2008 and not 1 June 2008

Citibank starts 1st June 2008 confirmed

@clawhammer,
I thought it was 1 June 2008 until I checked out the banks' website on this tiered interest rates. I got this off Citibank's site :

"Citibank credit cards are designed with benefits that allow you to enjoy and live life to its fullest. As such, effective 1 July 2008, Citibank will introduce a new Tiered Interest Rate Structure on retail purchases in line with the latest guidelines by Bank Negara Malaysia."

---Added---
Another issue with Citibank came up this afternoon when I was trying to log onto my online account to make bill payments. Apparently my Clear Visa Card account has been shut down / closed. Here's the gist of the story:

1) i needed to pay bills
2) i couldn't log in to my citibank online
3) i called called customer service
4) they tell me this account i'm logging onto has been closed / shut down
5) i tell them it's not possible because i just used my card tis afternoon
6) they tell me it can't be cause my account is shown as closed in the records but i ask them to check anyways
7) they tell me there is a record of a transaction going through this afternoon through this closed account
8) they got confused and put me on hold whilst they got their manager to speak with me
9) i wanted to know the reason for this account to be closed, and why the physical credit card was usable if the account is closed
10) she explained the platinum visa card offered to me will override my existing visa card cause it's a higher tier
11) she explained the physical credit card of the closed account is still usable for the next 90-days
12) she couldn't explain why i wasn't informed about the card being an upgrade, that my RM should have told me

Now I wonder what's going to happen if I decide not to want the Platinum Card *grins*

This post has been edited by tinkerbel: May 27 2008, 05:46 PM

VERY VERY BIG MISTAKE...... they deserve to lose a customer like u .

@yewkhuay,
I've sorta decided I'm going to decline this Platinum Card Citibank offered. Will just need to let the bank officer know when she calls me tomorrow.

everyone wants a platinum card but u gonna reject it?? hahhaa