Balance Transfer

Balance Transfer is a way to reduce financial burden.... however, the bank always seems to outsmart the consumer by manipulating the way customer perceive the deal.

RHB for example.... i have been con by them for the 6% BT plan.... it seems that i am able to save 6 % per year of interest for 1 year. IT"S A LIE.... the 6% is fixed rate. It is equivalent to about 12% "REDUCE INTEREST".

There is VERY LITTLE saving by transferring to RHB.

HSBC is offering a 6% for 6 months which is a better deal.

EON Bank is offering a 5% flat rate for a 12 month installment.

MBF offers 0% for 12 months.

Anything that BANK is conning us is the way how the "Balance is transfer". Different Bank have different way. Just as you though you are saving, indeed you are not.

RHB Bank will put your Credit Transfer amount into your deposit account.... let say, you BT 10k, your account will show 10K is utilized (with low interest), then, as times go, you go and swap 8K and pay 5K into your account. the 5K will be utilized to pay the "lowest interest" amount, meaning your BT amount. the 8K you just swap is subjected to maximum interest without the 20day grace period because you have not settle the full amount.
And you will be charged 13.5% interest on 8K and 6% (flat rate interest) on your 5K. You end up defeating the purpose of BT.

No saving at all....

The only way to save on BT is.... stop using your card that has a low interest on it. just pay the minimum amount and settle the full amount as soon as the BT low interest period has used up.

Spend smart and do your part.

Norm'C