Hubby forwarded an article to me and I realized I have not taken all factors into consideration.
6. When we pay installment, there is a portion that goes to interest and principal. What I didn't factor in my previous entry is the potential gain on the interest portion. With ASB loan, that interest portion goes to the bank. If we deposit the fund ourselves to ASB, for e.g. RM200 per month, at the end of the loan tenure (we didn't take the loan. just assuming the same period of time) we will get more despite not having a lump sum amount in ASB to begin with.
7. Another thing about ASB loan, there is ASBRTA (much like MRTA) which will pay the bank the amount you still owe them if you die and your next of kin will get the total ASB amount invested via loan. Only after you DIE! If you're the only breadwinner of the family and you don't have any other savings and life insurance, that will probably make sense. Otherwise there is no point. The insurance paid could even be used as investment in your ASB account.
There you have it. I think NOW all issues have been considered. Thanks to hubby :)
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