I received a text message from CIMB Bank a couple of days ago which says that we could obtain ready cash at 3.55% per annum and get a FREE multi-purpose bag upon acceptance. No minimum income is required. Just pledge our CIMB Fixed Deposit or investment products.
I was curious what this was and thought that it was a new investment product. I called up my home branch after checking there was no information that matches this on the CIMB website.
According to the person in-charge, this is a credit facility that we all know as "OD against FD." Aiya, how come they failed to mention this in the text message? Also, they should provide a contact number for us to call should we have questions but they did not even provide something as basic as this!
Anyway, the rate 3.55% was obtained from (Base Lending Rate minus 2%) and the current Base Lending Rate is 5.55%. To be frank, this "interest" on OD against FD is very attractive. When we pledge our FD to this account, we are able to obtain 100% overdraft and still continue to reap interest on our FD as usual.
This means that if we are enjoying 2% interest on our FD, we only have to pay 1.55% interest per annum (3.55% minus 2% per annum) on whatever overdraft we have used. I think this is an excellent housing or car loan.
I was curious what this was and thought that it was a new investment product. I called up my home branch after checking there was no information that matches this on the CIMB website.
According to the person in-charge, this is a credit facility that we all know as "OD against FD." Aiya, how come they failed to mention this in the text message? Also, they should provide a contact number for us to call should we have questions but they did not even provide something as basic as this!
Anyway, the rate 3.55% was obtained from (Base Lending Rate minus 2%) and the current Base Lending Rate is 5.55%. To be frank, this "interest" on OD against FD is very attractive. When we pledge our FD to this account, we are able to obtain 100% overdraft and still continue to reap interest on our FD as usual.
This means that if we are enjoying 2% interest on our FD, we only have to pay 1.55% interest per annum (3.55% minus 2% per annum) on whatever overdraft we have used. I think this is an excellent housing or car loan.
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