Malaysia Financial Blogger | Financial Freedom Ideas | imDavidLee.Com

How to Calculate Loan Interest Monthly Rest and Daily Rest?

If you have purchased house before then you may hear that the home loan is calculated on monthly rest and another is on daily rest. But, nowadays most banks calculate your mortgage interest based on daily rest. Have you even heard people saying that daily rest loans are more cheaper? If you do not know what this means, then you really need to understand how it works.

Here are my brief explanations.

i) Monthly Rest

Your loan interest for the current month will be calculated based on the previous month’s outstanding balance (which consists of principal and interest not paid, if any).

The Advantage of Monthly Rest

You do not have to worry about making installments at a certain date, as long as the payment comes in before month end.

Example: For a RM100,000 loan at 4.05% interest per year, monthly rest for a 30 years loan. The monthly installment is RM481, paid on the 20th of the month.

Month 1
Outstanding loan amount: RM100,000
Interest charged: RM481
Monthly capital repaid: RM481- RM337.5 = RM143.50
Outstanding loan at month end: RM100,000 - RM143.50 = RM99,856.5

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EPF Death Withdrawal

Most of the time, we are highly urged to name our nominees because the process of withdrawing EPF savings will not be as simple but may be more time- consuming. When there is no nominee, the EPF will pay the savings of the deceased member to the next-of-kin. He or she may apply to withdraw the deceased member’s savings by producing the following documents:

* Member’s death certificate
* Applicant’s identification card
* Letter of Administration which is produced by the High Court
* Documents that verify the applicant’s relationship with the deceased
* Marriage certificate
* Children’s birth certificate (if any)
* Personal savings account passbook

Payment will be made to the next of kin and is subjected to the member’s total savings as follows:

i) Member’s total savings is less than RM2,500
- All of member’s savings will be paid in full.

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Paypal vs Google Checkout: Which is better?

The Internet gives us so many windows of opportunities to make our life much easier. Nowadays, all kind of Internet business transactions and shopping have been revolutionized by the Internet through online payment services such as Paypal and Google Checkout.

Similarities Between Paypal and Google Checkout

Both are free and easy to set up. Both also require credit card verification in order to get your account working.

Both Paypal and Google Checkout quite similar in the sense that they can be used by sellers, merchants and buyers to sell, trade, or pay for certain items or services.

Paypal vs Google Checkout

Paypal is now owned by Ebay. Google Checkout is an online service provided by Google Inc. It was opened to the public since June of 2006, and was a free service.

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Malaysia Latest Car Loan Interest Rates

Last Saturday my friend told me that he bought a national car 3 months ago and his car loan interest rates was 4% for 7-year loan tenure. But, mine was 3.5% (5-year loan tenure) only. I still remember last year for 7-year tenure loan interest rate should be 3.65%. Thus, car loan interest rates in Malaysia had been increased. I think this is following the recent increase in the Bank Negara Overnight Policy Rate (OPR) in March.

In year 2009, when the OPR was at a historical low of 2%, the borrowers used to pay only up to 2.85% interest rate for a new foreign car. That’s the reason I can have the lower loan interest rate for my car.

Latest Car Loan Interest Rates

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How Much Can Withdraw from EPF Account II for Purchasing House?

Based on the EPF retirement plan, money accumulated in an EPF savings account II can only be withdrawn when members reach 50 years old, and they may allow to withdraw only 30% of their EPF, members who are 55 years old or older may withdraw all of their EPF.

EPF Account II Withdrawal at Age 50 Years

EPF allows you to make one shot withdrawal at the age of 50 years. In the other words, you are allowed to withdraw all your savings in Account II in order to help you prepare for your earlier retirement.

There is no restriction on how your money going to use. But, it is advisable that you use the money wisely and do not spend the money away, else you may not be able to achieve the kind of retirement life that you wished for.

Applications to withdraw can be submitted 6 months before reaching age 50 years. And, payment will only be processed after you reached 50.

Eligibility for Withdrawal:

You can withdraw your savings in EPF account II to finance the purchase of a house. If you obtained a full housing loan (100%), you are eligible to withdraw as much as 10% of the price of the house or the balance available in Account II, whichever is lower.

If you purchased a house by cash, you are eligible to withdraw as much as the price of the house with an additional 10% of the price of the house or the balance available in Account II, whichever is lower.

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