Let’s Compare our ASB Plan

The last post about ASB is getting too long. So here I dedicated a post for visitors’ ASB/other investment plan. The main purpose is to share and discuss about ones’ method. If we got enough examples, we might know which one is better. Here I list some example from some readers.

Duration= 20 years
Monthly Payment= $157 + 100 extra investment
1) loan method –> Balance after 20 years: $155,726.08
2) Conventional –> Balance after 20 years: $149,149.98

Difference = $6,576.10 (4.409% increase in 20 years)

Duration= 10 years
Monthly Payment= $115 + 100 extra investment

1) loan method –> Balance after 10 years: $39,411.00
2) Conventional –> Balance after 10 years: $38,474.00

Difference =$937.00 (2.435% increase in 10 years)
Now it’s your turn. Grab this calculator and post what you got. Or you could just give the detail and I will calculate for you.

  1. #1 by azr on February 26, 2007 - 3:30 pm

    50000k@20yrs@366/mnth@BLR-0.49@return(6.5+1.0)@no additional deposit – 211438

    366/mnth@return(6.5+1.0)@20years – 205480

    Difference – 5958

    The difference is tiny, BLR is increasing and taking loan is such a bad idea but I took it anyway on the ground that ASB is not like any other investment, especially secured. Plus I can’t discipline myself enough to set aside 366 a month for ASB and i I do I usually procrastinate because 366 seems like cheapskate 🙂

  2. #2 by ebs on April 18, 2007 - 10:08 am

    Just stumble upon your informative website, as I was searching something useful about ASB. There have been debate about loan vs saving method. Is there really a significant difference (profit) between the two methods? The idea of taking a loan is just leceh for me. If the saving method is better than I just have more than enough reason not to take a loan for ASB

  3. #3 by Irwan on April 18, 2007 - 11:17 am

    Dear EBS,

    In my experience experimenting with different method posted by our readers here, I can say that Loan could give more return than conventional method (sometimes with higher interest, it can be lower than conventional method). However the extra is not worth the freedom that you lost by having to pay monthly payment for the loan.

    Like in the examples above, the first case only get 4.409% increase in 20 years, which is 0.220% per year.

    So to answer your question, there is no significance different between using loan and conventional method.

  4. #4 by ebs on April 18, 2007 - 12:19 pm

    Dear Irwan,
    Personally, would you go for conventional method then?
    Btw, I think you are very helpful and your site is excellent

  5. #5 by Irwan on April 18, 2007 - 1:37 pm

    the pleasure is mine.

    Yeap, personally conventional method is my choice. But then, I won’t put all my saving there, maybe around 5-10% for the sake of diversity. Most of my investment is under Ittikal and other mutual fund from Public Bank.

    However, I categorized myself as aggressive investor. thus, that justify my action there.

    To check you risk profile, go here

  6. #6 by azr on April 20, 2007 - 10:51 am

    Hello guys,

    It’s good that people are investing (with exception of Swisscash and the likes which are unhealthy). And I opted to loan to discipline myself plus I don’t think 370 would deprive me of my freedom. Plus I am very conventional. But to one his own 🙂

  7. #7 by Irwan on April 20, 2007 - 11:06 am

    absolutely agree.. there best way to invest is the one that nicely suit yourself.

  8. #8 by arw on June 21, 2007 - 3:32 pm

    hi there,

    you have a very informative website here. i would like to add my opinion regarding your ASB calculator. the dividend segment has been added, but as i understand, the divident payout is based on the average monthly balance that you have in the account and not on the total value. perhaps you can made some adjustment (dont ask me the formula, i have no idea about this LOL)
    working towards a better ASB calculator.. KUDOS to you man for having this educational website.

  9. #9 by Irwan on June 21, 2007 - 3:56 pm

    thanks for your kind words. the calculator already accounts for minimum monthly balance, not the total value. thanks again for your concern.

  10. #10 by Caroline on July 2, 2007 - 3:54 pm

    Hi Irwan,

    I find your site is interesting. Ok, i just can’t figure out what’s the benefit of taking up a loan for ASB???

  11. #11 by kkchow23 on July 3, 2007 - 1:54 am


    The only reason for taking up loan is unless the loan interest (BLR) is not high. If the dividend and bonus can’t cover the interest, then we’ll be in a losing end rather than profiting anything.

    Just like calculations made by Irwan and azr, the benefit is rather small and it’s quite risky as well.

  12. #12 by Irwan on July 3, 2007 - 6:50 am

    Hi Caroline, with the current rate, it’s indeed more profitable if you take loan for ASB investment. And from the average, you could gain 0.2% more profit per year than using your own money.

    However, with that 0.2% advantage, you lose the freedom to invest (in 10 or 20 years) anywhere except in ASB (where else the people feel comfortable other than the so called government-protected investment).

    And I must say, doing this for all but 0.2% gain is something beyond me. It’s also good to note that the 0.2% advantage could be vanished erm.. say next year, or next next year. imagine having to worry about that for over 20 years…

  13. #13 by Arip on September 6, 2007 - 2:17 pm

    Hi Irwan,
    Kudos on the website mate, its quite informative. Like many who posted here, I’m currently considering taking a loan for ASB, one offered by Maybank. The rates start at something like BLR – 1.5 for the 1st year then BLR-1 for the rest, or something like that. I dont have the figures at the moment (typing out of coffee bean).

    Anyways, I’ve been running some calculations over the funds i currently have as well as using your ASB calculator (really nifty btw). My plan is to take a RM100k loan for 20yrs, with a monthly payment of about RM750 or so a month.

    With a starting capital of about 140k and an estimated return of 7% a year, I reckon that i could make somewhere in the neighbourhood of 320k by the 4th year. That would be about 80k on top of my starting capital and the loan that i took. By that time i probably wouldve paid the bank something like 36k for the loan, which if invested conventianlly wouldnt really amount to much in a matter of 4 years.

    I suppose if the income from ASB outwieghs the loan instalments then things should be fairly ok. The bank manager i talked this over with suggested a 200k loan and that i reinvest my existing capital in ASW2020 or Didik, but i realized it wouldve negated any returns i wouldve made and i had to rely on the other funds for growth. Plus i think the loan is a pretty decent form of life insurance, all things considered. Another valid consideration put in earlier but one of the commentors is the opportunity cost, and the fact that the loan ties down your finances.

    Anyways, thats just a plan. If anybody has critiques or found flaws, pleasepleaseplease comment! I need to get feedback b4 i commit to it! Hehehe. Cheers!

  14. #14 by fazli on November 22, 2007 - 8:32 am


    I am quite new in investment idustry..i am now working as a stock dealer. i am also a parttime unit trust agent (public mutual). In my opinion it is better u guys apply for personal loan and invest in other unit trust rather than ASB. ASB is just giving out 7-9% of profit. As far as i am concern most of public fund is giving more than 15% average for 3-5 year. Moreover this year where economy are quite ok and the share market are doing good, some of the fund is giving out more than 40%. Why should everybody invest in ASB. Typical bumi’s…of course they provide islamic fund. As the above comment u guys are talking about opportunity cost, and the fact that the loan ties down your finances. If u invest in public u can withdraw it anytime u like..

    huh..i am new. Correct me if i am wrong.

  15. #15 by reezsal on November 26, 2007 - 3:55 pm

    tahniah saudara irwan kerana banyak mbantu mberi penerangan tentang pelaburan.Wish i could mail in english like you’ll..just can read not write..takpelah i’m learning insyaallah.
    saya telah mbuat pnjaman asb maybank sejak 2006 sebanyak 70k..la ni saya rasa ramai yang kata pulangan yang diberi tak banyak spt yg dipromosi dulu. like last year rasanya dividen tak sampai 8%.masa kita nak ambikloan dulu wakil maybank kata mgkin cik tak perlu bayar utk tahun seterusnya..and sekarang nie nampak gaya public mutual punya ut boleh bg pelanggan mrk more than 11%.sikit punya beza dgn maybank.what do you think?rasa mcm nak jual je about 20k dpd 70k tu..calculator yg saudara sediakan 2 tak mbantu saya sgt sebab saya kot yg tak reti guna..anyway please respond dan segala pandangan saya dahului dgn ribuan terima kasih.

  16. #16 by -azr- on November 26, 2007 - 4:34 pm

    Helo Reeszal,
    You should take into account the charges charged by Public Mutual, for every new unit 6.5% is applicable. This is where ASB differs to other unit trusts, ASB has no such charge.

    In order for PM to match the return of ASB, PM needs to give out at least 13.5% per year (most do exceed this amount). With 11% a year with other unit trusts, you are actually in the losing end for the first year.

    Hopefully this will help.

  17. #17 by Juleng on December 13, 2007 - 12:28 pm

    Hi Irwan…

    Need your professional advise on my asb loan.
    So sekarang loan saya ialah 15000.monthly payment is 112.00p/m
    the interest charged on me is 6.75%.the prob now is why does the interest charged on me fluctuate every month…on oct the interest is rm85.28 and on nov rm82.38.I have no extra investment that i put in the account every month…so the question: between me and the bank siapa yang akan untung lebih…saya betul tak faham…and kenape interest naik turun every month..

    • #18 by amdin on May 12, 2008 - 6:44 am

      my 2cent opinion, tengok ar.. kalu bulan tuh 15 hari ja.. faedah nye mungkin RM40.50 kot?? refer balik kat agreement document n perati betui² dier ada tulis BLR BLR BLR atau KPA KPA KPA.. tuh sbb fluctuate. Nie dah jadik biasa bila amik loan, n yg penting tak cam roller coaster.

  18. #19 by Irwan on December 13, 2007 - 1:16 pm

    hi there,

    it’s not my profession, so you aren’t gonna get professional advise :p.

    I could only think one reason why it change

    If you have set an automatic payment and the value maybe more than you should pay. If you pay extra, this will reduce the amount that you have to pay each month. Actually, I’m not sure about this also. but as long it’s lesser than you expected, you shouldn’t worry.

    after all, you could always call your bank to ask about this. that’s as far as i could help. maybe other visitors could help you further.

  19. #20 by adymfi on October 20, 2008 - 9:12 am

    Mana-mana topik tentang ASB investment ada je ulat-ulat Public Mutual ni. Kalau takda komisen mesti diaorang ni tak promote dia punye unitrust. Sebab apa ulat-ulat ni asik buruk-burukkan ASB loan scheme? Sebab diaorang ni tak dapat apa-apa profit daripada skim ni. Cuba kalau PNB bagi komisen kat ulat-ulat ni.. sure heboh unitrust yang lain kena kondem..

    yang ikhlas;
    lu fikir lah sendiri…

    • #21 by Mohd Basir Ahmad on October 21, 2008 - 1:33 am

      betul tu. kalau takde gaji & perks, Najib pun tak nak jadi PM.
      CEO PNB pun tak nak kerja kalau takde gaji. Baik balik Pasir Puteh.

  20. #22 by aron on August 5, 2009 - 5:28 am

    encik irwan,,saje ni berumur 23 tahun..
    saya tak kesah la ape orang nak kata pasal asb ni..
    tapi saya wat loan asb sebanyak rm30k dalam masa 20..
    walaupun asb tidak memberi dividen yang terlalu tinggi..tapi sekurang2 nya i hasil dari dividen tu mampu untuk saya memiliki sebuah rumah yang agak selesa.
    melalui calcutor yang cik irwan sediakan dengan jumlah pnjaman rm 30k selepas 20 thn tanpa di usik dividen tu..jumlah wang boleh meningkat sehingga hampir 150k.dan sepanjang saya bekerjasetakat ini,,tiap2 bulan saya mendisplin kan diri saya untuk menyimpan wang sebanyak rm 300 sahaja di asb..bagi saya walaupun mungkin asb ni tak mampu membuat kan saya jadi kaya..tapi sekurang kurangnya ia mampu membuatkan saya hidup selesa di hari kelak.terutamanya untuk memberi pendidikan yang sempurna pada anak saya nanti..saya pun bekerja sebagai penjawat awam..jadi amat memudah bagi saya untuk melakukan pinjaman peribadi bagi menambahkan lagi wang simpanan asb..sekadar berkongsi pendapat.terima kasih

  21. #23 by kingv6 on January 14, 2010 - 12:15 pm


    Need advise here..
    Which is more profitable, Option1 or Option2?
    Is the Dividen & Bonus calculation the same for both options?

    ASB loan: rm50k
    Loan tenure: 25 years
    Monthly inst: rm263

    Manually deposit into ASB book: rm263 (every month)
    Duration: 25 years

    Awaiting reply.

  22. #24 by mr..desperate on February 9, 2010 - 4:29 pm

    please email me all about maybank asb loan..

  23. #25 by remo on March 31, 2010 - 7:07 pm

    hey everyone.not sure if this is still active but i was wondering if let’s say i were to take up a 200k maybank loan and invest it in asb,will i still be able to manually deposit money into asb every month since the 200k is just a ‘sijil’..anyone have a clue?thanks..

  24. #26 by borhan on April 17, 2010 - 10:15 pm

    hello, i have a question. lets say ive made a 50k loan for 20 years. if 5 years along the way, i decide i want to make a bigger loan, say rm200k for 10 years. am i allowed to cancel the current one (50k for 20years)?

  25. #27 by mizz wonder on May 24, 2010 - 10:59 am

    hi there…

    lets say i made 20k for 10years…
    at the end of 10years…
    how much total amount i will get…

    (1) if I’m not using yearly dividend

    (2) I’m withdraw yearly divedend

    *any idea??

  26. #28 by Akhiimaredha on December 18, 2010 - 9:15 am

    hi irwan…

    im planning to do ASB loan ..am i suppossed to take a long year to pay or just take the minimum year that i can get??what benefit if im taking 25 years of loan??is that benefit r for me or for the bank???i dont understand about the conventional and loan method..

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