How Bank Negara’s Reduction In Overnight Policy Rate Affects Malaysians’ Pockets

(Image: The Sun)

*The commentary below is given by Hann Liew, CEO of RinggitPlus.

Bank Negara Malaysia’s (BNM) Monetary Policy Committee (MPC) announced yesterday a reduction in overnight policy rate (OPR) by 25 basis points, from 3.25 per cent to 3 per cent.

According to BNM, the OPR cut is intended to spur monetary accommodativeness and counter slow economic growth amid growing global uncertainties.

While we see these as issues of national concern, at RinggitPlus we have been analysing how this cut will affect Malaysians in their everyday lives.

What does it really mean for the pockets of Malaysians

At this point, we can expect several ways this change will affect how and when people borrow and save money.

Banks in Malaysia will generally move their deposit rates and lending Base Rates in line with moves in OPR, so a cut in OPR will be generally followed by a cut in those rates, which means lower interest rates for both savings and loans.

So, in short, good for people looking to take out loans, and not so good for people looking to save money.

Both credit and savings products such as home loans, car loans, fixed deposits and savings accounts will be affected, although not immediately, and this is a window of opportunity – especially for savers.

The following are some tips for Malaysians to get ahead, before banks begin rolling out this change to their consumers.

Good for borrowers

There are two considerations to make when thinking about loans in the face of this OPR cut. First, does the loan product have a variable or fixed rate? Second, are you an existing borrower or are you looking to borrow in the near future?

Car and personal loans are typically fixed rate loans, which means the interest rate for the loan does not change throughout the period of the loan.

Current borrowers on fixed rate loans will see no change as a result of this OPR reduction by BNM.

However, if you are looking to take out a new personal or car loan, it may be prudent to wait until the banks readjust and reduce their interest rates on these products over the next few weeks.

Home loans, on the other hand, typically have variable rates. This means that the interest rate can fluctuate over the course of the loan period.

As a result of this OPR cut, we expect home owners with existing loans to be paying roughly RM20 less on their monthly installments for every loan amount of RM100,000, once the changes are reflected onto the banks’ respective Base Rates.

Save now, before new rates take effect

Conversely, a lower OPR and subsequent adjustments in banks’ own internal rates, means lower interest rates on savings products such as current and savings accounts, and fixed deposits when the banks start rolling out new rates.

As banks begin to roll out this rate reduction through to their fixed deposit products, we will be seeing adjustments downwards in deposit rate promotions for consumers to capitalise on.

Therefore, if you have the means to deposit, it might be wise to do so immediately before the interest rates begin to drop.

For the good of the country

While the decisions made by our government, or in this case, our central bank, are in the interest of the country as a whole, they may not be easy to understand.

Here’s where we, at RinggitPlus, will do our best to make understanding these changes simpler, with the hopes of empowering Malaysians to make smart choices to maximise their money.

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Hann Liew

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CIMB Stops Issuing New Prepaid Cards From 1 July, Discontinues Kwik Account and Lazada Prepaid Mastercard

CIMB has announced that it will stop issuing new prepaid cards starting from today, 1 July 2022. As such, the bank is also terminating two related products, the CIMB Kwik Account (which gives you the option to get a prepaid card) and the CIMB Lazada Prepaid Mastercard card.

In its announcement, CIMB stated that customers should take note that both the CIMB Kwik Account and CIMB Lazada Prepaid Mastercard card will cease to be valid upon the expiry of their accounts or on 30 November 2022, whichever is earlier. In the meantime, cardholders may still continue to use their cards until the stipulated date.

CIMB also clarified that customers will not need to manually cancel or close their accounts as the process will be automatically carried out once the accounts expire – or on 30 November 2022. However, those who wish to close their accounts ahead of either date may do so online via CIMB Clicks.

Aside from that, cardholders who still have any credit balance in their CIMB Kwik Account or CIMB Lazada Prepaid Mastercard card can also transfer all the balance to their preferred savings account, following these steps:

Step 1: Log in to CIMB Clicks
Step 2: Click on Pay & Transfer
Step 3: Select DuitNow/Transfer Money
Step 4: Transfer all the available balance to your preferred savings account
Step 5: Confirm the details and complete the transaction

Meanwhile, if you do not manage to transfer the available balance to your savings account before the account closure, you may contact
CIMB’s customer resolution unit
 for refund purposes.

In its
FAQ
, CIMB also shared additional info on how it will treat the cash rebates and cashback amount that are to be awarded to its CIMB Lazada Prepaid Mastercard cardholders. Specifically, those with accounts that close on 26 November onwards will receive their last cash rebate for their previous month’s spending on 25 November. Meanwhile, for those whose accounts close on or before the 25th, the last cash rebate will be on the 25th of the previous month, for the previous month’s spending.

For context,
CIMB Lazada Prepaid Mastercard
 cardholders are eligible for cash rebates for transactions that are charged to their cards (capped at RM25 per card). In the original arrangement, all cash rebates earned were scheduled to be credited to the cardholders on the 25th day of the following month.

Finally, CIMB commented that cardholders who wish to substitute their soon-to-be-discontinued prepaid cards may apply for CIMB Octosavers Account-i (with a debit card) as an alternative. They may also consider signing up for the
CIMB e Credit Card
 to take advantage of the various deals offered to the cardholders.

(Source: CIMB [
1
,
2
])

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Nur Adilah Ramli

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Google Announces Virtual Cards For Chrome & Android, And Google Wallet App

Google kicked off its two-day annual developer conference, Google I/O yesterday, revealing several new products and services that it expects to roll out in the future. Among these include the introduction of virtual cards in Chrome and Android, as well as a new Google Wallet app.

The launch of virtual cards on Chrome and Android is essentially aimed at offering another layer of security for your payment information, as it will hide – or disguise – your credit or debit card number when you make purchases on the web.

“When you use autofill to enter your payment details at checkout, virtual cards will add an additional layer of security by replacing your actual card number with a distinct, virtual number. This eliminates the need to manually enter card details like the CVV at checkout, and they’re easy to manage on Google Pay – where you can enable the feature for eligible cards, access your virtual card number, and see recent virtual card transactions,” the senior vice president of Core Systems at Google, Jen Fitzpatrick explained in
a blog entry
.

(Image: Google)

Aside from that, every virtual card generated can only be used for one specific transaction, although you also have the option to use it for recurring transactions in the case of a subscription. This feature is slated to be launched for users in the United States first – in the summer of 2022 – with Google working with financial service providers Capital One, Visa, and American Express to do so. Meanwhile, support for Mastercard will arrive later, and this feature is also expected to be provided for other regions eventually.

As for the new Google Wallet, this app will allow you to store things like your credit and loyalty cards, digital IDs, vaccination cards, travel passes, digital keys, and more. You’ll also be able to make payments in selected stores via Google Wallet, on top of enjoying various other conveniences, such as getting reminders and updates related to items you’ve saved in your Wallet. For instance, if you’ve saved your boarding pass for a flight in your Google Wallet, it will notify you of any delays or changes to your flight.

That said, the roll-out of this feature will differ depending on your location. Users in selected markets may see the existing Google Pay – Google’s payment feature – get updated to become Google Wallet. Meanwhile, in some other markets, Google Pay will continue to exist alongside the Google Wallet app, with Google Pay being used primarily for payments and money management and Wallet to store your payment and non-payment assets. No specific date for the launch of Google Wallet has been provided as of yet.

(Image: Google)

Both of these features are not necessarily revolutionary or new – Samsung Pay has been using virtual card number generation (dubbed
tokenisation
) for several years now. The South Korean tech company also announced its own
Samsung Wallet
 earlier this year, with functions similar to the Google Wallet. However, thanks to the sheer size of Chrome and Android users, Google’s new products will expand the amount of users who get to enjoy the enhanced security features especially at a time when online frauds are prevalent.

(Source: Google [
1
,
2
])

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Alex Cheong Pui Yin

Alex Cheong Pui Yin

Previously covered recruitment-related stories and had a short stint as a copywriter for the property industry. She subsequently developed an interest in investment and robo-advisors.

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MOF: OPR Cuts Have Boosted Malaysia’s Economic Recovery

(Image: Bernama)

Deputy Finance Minister II Mohd Shahar Abdullah has noted that the reduction in the overnight policy rate (OPR) has boosted the country’s economy by lowering the cost of borrowing and stimulating domestic consumption.

According to the minister, various main economic indicators showed that Malaysia’s economy has been gradually recovering since April, following measures undertaken by the government and Bank Negara Malaysia (BNM). He also said that the recovery process is expected to continue in line with the recovery of the global economy and sentiment.

Mohd Shahar further elaborated on how the OPR cuts have helped ease the public’s cashflow. “As a simple example, if your 30-year housing loan totalling RM350,000 at an initial interest rate of 4.50%, and with the 125 basis points cut in the OPR this year, your monthly repayments will be RM1,523 compared with RM1,773,” he said during a parliament session, adding that the RM250 freed in this scenario can be saved or spent, with the latter helping to stimulate the country’s economy.

(Image: The Edge Markets)

Mohd Shahar also said that the OPR cuts this year will continue to support the economic recovery process. In 2020 alone, BNM had reduced the OPR for four times – in
January
,
March
,
May
, and
July
 – in a bid to help the country’s economy bear with the impact of Covid-19 and the movement control order (MCO). In total, the central bank has reduced the OPR by 125 basis points, before deciding to
maintain it in September at 1.75%
.

Aside from reducing the OPR, BNM had also taken other steps to boost the country’s economy. This is in line with the Bank Negara Malaysia Act 2009, which provides the central bank with the autonomy to fulfil its mandates of promoting monetary and financial stability.

(Image: Malay Mail)

“BNM had also announced a lowering of the
Statutory Reserve Requirement (SRR) ratio
 by 100 basis points to 2.00% in March and May 2020, as well as the flexibility to banking institutions to use Malaysian Government Securities (MGS) and Malaysian Government Investment Issues (MGII) to meet the SRR compliance,” said Mohd Shahar.

To clarify, the
SRR
 is a monetary policy instrument used to manage liquidity in the market, where banking institutions are required to reserve a certain balance in their Statutory Reserve Accounts (SRA) in accordance to their eligible liabilities. With a lower SRR, it means banks do not need to reserve as much money, allowing them more funds for loans and other uses.

(Source:
The Edge Markets
)

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About THE AUTHOR

Alex Cheong Pui Yin

Alex Cheong Pui Yin

Previously covered recruitment-related stories and had a short stint as a copywriter for the property industry. She subsequently developed an interest in investment and robo-advisors.

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    darren

    8 months ago

very insightful, credits to the author

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Plan Your Finances and Make Your Financial Dreams A Reality!

It All Starts with That First Step

The bigger your dreams are, the longer and harder the journey will get to realise them. But you need to begin somewhere and take control of your life to achieve your lifelong dream, whether it’s to provide a bigger and comfortable home for your family, or accumulate wealth and expand your business for your next generations, or send your children to a good university, or even experience the different cultures and places in the world yourself.

It all begins with the first step, and if you’re finding it hard to achieve your dreams on your own, don’t be afraid to get financing from affordable and trusted personal financing such as
BSN MyRinggit/i Personal Financing
.

Now that you know the easy 3 steps to achieve your financial dream, go ahead and start realising your dream today!

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Sign Up For An Alliance Bank Credit Card - Get Free Reebonz Credit

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Inexpensive (or Free!) Things You Can Do to Aid the Dengue Fight

The Dengue scourge is apparently back with a vengeance and newspapers have splashed the statistics all over their front pages. It’s not that it ever left; but it does have it’s peak periods and low periods mostly based on the weather. It’s now,
according to reports, at an all-time high
.

Dengue is a threat to our health and well-being; and to our wallets (lost productivity, medical bills) but most importantly; it’s become a matter of
life and death
 for society’s most vulnerable (young, old and those with other medical complications).

Fortunately, there are many inexpensive ways you can join the fight. You may think such small efforts by one or two may not have much effect but it is when everyone gets together to do their part, that is where we will truly reap the benefits. We promise, these won’t cost you the better part of your salary.

Clean Regularly

Keeping the compound and home clean as well as free of stagnating pools of water means less breeding grounds for mosquitoes. It doesn’t take much; if you do need to have pools of water (in a pond or for plants), take measures to either include the right fish in your pond, using the oil method to prevent breeding, or simply sealing all water containers tight. You can find heaps of good articles
online on how to do this
.

Littering also causes drain clogs and stagnant water, increasing the breeding grounds outside the home. It’s surprising how many Malaysians still think littering is OK. It’s costing us our health so perhaps it’s time to rethink that.

None of these efforts cost you anything but will make a difference if we practise it collectively.

Get Involved in Community Clean-Ups

Many resident community groups practise periodical clean-ups and they can always use another helping hand. Find out if there are any groups in your area and volunteer! It’s just a bit of your time to keep your neighbourhood cleaner and that much safer from the mosquito menace.

The effort might be a wee bit more on your part if you don’t already have a community group and would need to start one but it’s not such a bad thought if it could help keep your
taman
 dengue free.

Report Potential Breeding Grounds or Request Fogging

If you’ve noticed a particular construction site suddenly spawning an influx in mosquitoes or other pests, let your local council know. The same goes for unclean eateries and housing renovations that may become (if they aren’t already!) potential breeding grounds.

Sometimes there may be houses in an area that are abandoned and potentially creating optimum conditions for mosquitoes to get inside and breed undisturbed. If you do notice such houses in your neighbourhood, inform the local councils. They will be able to come by and give the area a once over or contact the owners.

The council will also know if more regular fogging is required in an area so it helps to give them a buzz when you suspect a health hazard nearby.

Consider Both Natural and Chemical Repellents

Most people already have a favourite repellent they depend on at home. Perhaps you often use the spray, electrical or coil repellent religiously at home. Some others prefer the natural method; such as keeping particular types of plants or burning essence of lemongrass in the home.

Whichever method you employ, perhaps it’s worth switching it up or using a combination of the two. Sometimes a spray may not get all the suckers and you probably don’t spray at hourly intervals.

the same with simply using natural methods. If the plants on your lawn didn’t help the open windows at the back; spraying or electrical repellants may do the job.

Some of these items may cost a bit but instead of going hard using any one method fanatically; switching it up may make it easier on your pocket. Can’t afford an electric mosquito killer in every room? Perhaps rooms you don’t use a lot could just be sprayed and kept shut.

These are just suggestions and it will be best to tailor the methods depending on the layout, size and location of your home. For example, homes with bigger lawns and more windows may require more attention than say, a 800 sqft apartment. You can find more ideas on inexpensive repellent options on our sister site, Savemoney.

Taking a holistic approach when considering your home’s mosquito repellent needs doesn’t mean a lot of costs but helps keep the threat at bay. Whilst we don’t recommend going crazy with the repellent, it’s always better to practise prevention techniques than cure!

Do you have any other tips to help Malaysians collectively fight dengue without costing an arm and leg? Let us know.

Gotong-royong photo from Selangorku.com; lemongrass from
bonnieplants.com
.

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Diana Chai

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4 European Travel Spots with One-for-One (or Close!) Exchange Rates with the Ringgit

Wanderlust is a beautiful thing. Some do it to bring them closer to a country’s cultural aesthetics while others travel for therapeutic soul-searching. Whatever the reasons, their costs certainly cannot be ignored.

Especially at a time when the Malaysian currency is plummeting without certainty, most travel plans have come to a sudden halt or shifted to more affordable destinations – most commonly around Asia.

Don’t frown just yet because there always is a way to reinvent the wheel and make it spin a different direction. In this case, just look for destinations in Europe that don’t use Euros and have currencies with a one-for-one exchange rate with the Ringgit (or close enough). The biggest spend to worry about would only be the plane ticket, the rest feels just like spending in Malaysia!

We’ve come up with a list of 4 countries that possess those traits and just could be your next dream holiday destination. So put those currency exchange worries aside and let’s get to it!

1) Poland

RM1 = 0.95 Zloty

Cup of coffee cost:
 6 Zloty

Return flight:
 Kuala Lumpur to Warsaw: RM3,000++

Perched on the Eastern divide of the European continent, Poland has, since joining the European Union, become one of the most sought after tourist destinations in the region for its rich cultural heritage and stunning landscapes.

The nation’s capital, Warsaw, owns some of the best sights in the world; including ancient city walls, palaces, churches and squares. One of the highlights of this city is its architectural wonder in the form of places like the Ostrogski Palace and Nozyk Synagogue, just to name a few.

The city of Krakow however, is considered the country’s cultural capital with attractions like Tatra Mountains which draw the border line between Poland and Slovakia. It is highly popular for winter and summer sports where tonnes of activities like skiing and boating are available.

If you’re looking for a little time travel, try Poznan on for size as it boasts one of the most gorgeous
Renaissance old town
 dating back to the times of ancient Polish royalty. Or take a humble peep at the scars of World War II at the UNESCO endorsed infamous Nazi concentration camp in Auschwitz.

2) Czech Republic

RM1 = 5.78 Koruna

Cup of coffee cost:
 39.50 Koruna

Return flight:
 Kuala Lumpur to Prague: RM2900++

A landlocked country in Central Europe, the Czech Republic sits behind the borders of Poland, Germany, Austria and Slovakia. Its position on the map looks a hay cramped, making it packed with architectural treasures and mountains clothed in lush forests.

Its capital, Prague, is decorated by hundreds of attractions that will make the casual tourist gawk. For instance, the world-famous astronomical clock, known to the locals as the Orloj, which is the third oldest of its kind in the world and is the oldest one still in operation. The components to this medieval wonder tell the position of the moon and sun in our skies and is outlined by Gothic detail.

The Prague Castle is also another historical attraction that holds wonders. It is the world’s largest ancient castle by floor measurement that dates back all the way to the 9th century when it was the dwelling place of Bohemian kings and Holy Roman emperors. Its facade and build truly is breath-taking.

Just north-east of the capital city sits the Bohemian Paradise. Living up to its name, this place is a protected landscape that is perfect for hiking and biking. If you love the idea of strolling through picturesque European sandstone formations and mountains blanketed with the morning dew, this UNESCO endorsed site is the place to be.

A little known town called Telc with a population of only over 6,000 people is also worth a visit while you traverse the spectacular Czech Republic. It is the best preserved of all the Bohemian and Moravian Renaissance towns and at one glance, it feels as though you were in a typical European town of olde.

3) Romania

RM1 = 0.96 Lei

Cup of coffee cost:
 7.40 Lei

Return flight:
 Kuala Lumpur to Bucharest: RM2,800++

With its borders outlined by 5 other countries that include Bulgaria, Serbia, Hungary, Ukraine and Moldova; Romania is known to be one of the more enchanting countries in Europe. Very much like Asian countries, this nation is deep-rooted in cultural heritage and is blessed with naturally beautiful countryside areas.

In the Transylvania region you will find a landscape of medieval castles, towns, dark forests and snowy peaks. Sounds like a setting for a horror movie doesn’t it? Right you are because the ever popular Dracula’s Castle sits atop a hill and is commonly known to the locals as the Bran Castle, which operates as a thrilling museum these days.

A little south in the same region is an iconic town called Sibiu and its horizon is worthy of a postcard backdrop. Its primeval old town build is the main attraction here and was awarded the accolade of European Capital of Culture in 2007. Enjoy some of the local food specials in cozy restaurants tucked all along its cobblestone paved streets.

For a journey into the souls and culture of the Romanians, make your way to the nation’s bustling capital city, Bucharest, and you will find the Dimitrie Gusti National Village Museum which by far is one of the largest museums in the world simply because it is outdoors. The village contains over 270 peasant farms, houses, churches, sheds, stables and so much more.

Fancy a trip to the seaside? Worry not because the Romanian region of Dobrogea is a coastal province dotted by Greek and Roman ruins and a shoreline that opens up to the Black Sea. A tonne of resorts to match your preference are up for the taking with a picturesque view for company.

4) Denmark

RM1 = 1.60 Krone

Cup of coffee cost:
 32.70 Krone

Return flight:
 Kuala Lumpur to Copenhagen: RM2400++

Once the home of land raiding Vikings and arguably the most expensive destination in our list, Denmark is one of five proud Scandinavian countries tucked high up in the northern region of the European continent. Danish people are proud of their ancient heritage and have evolved in all aspects of life with similar tenacity to become one of the best-preserved cultures in the region.

Take a glimpse into the rich Danish viking tradition at the recreated viking village and museum where an armada of preserved ships from way back when are exhibited. Further west of the island in Slagelse remains the once mighty Trelleborg viking ring castle and reconstructed long houses.

All these just hours away from the country’s capital, Copenhagen, where the medieval city of Centrum resides. It is the historical epicenter of the capital city and its streets are compactly lined with church spires, spectacular historical buildings, narrow alleys and shopping districts. If binge shopping is what you’re looking for, you’re in luck! Stroget is one of Europe’s longest premier shopping districts.

Over at Odense however, Denmark’s third largest city, lies more historic evidence of the viking age, which its people in modern times hold close to their hearts. Other than the vikings, this city is also famously known to be the birthplace of the world-famous fairy tale writer, Hans Christian Andersen, who’s brainchildren include
The Ugly Duckling
,
The Snow Queen
 and
The Little Mermaid
. Be sure to pay Ariel’s statue a visit here too!

Denmark also is home to yet another world-famous household name, Lego. The Legoland in Billund is the largest and oldest of its global franchise and guarantees an incredible experience with the entire family. Catch a glimpse of life-size Lego constructions of Star Wars, pirates and other nostalgic characters.

Our research has shown that Denmark along with other Scandinavian countries may have a close value to the Ringgit but can be pretty pricey to get around in. If you’re willing to splurge and live a little – the tourist experience, we can guarantee you, will certainly be worthwhile.

Time to Begin Your European Adventure!

We understand how the flight ticket prices can be a tad expensive, but think about it for a minute, that’s about as big as your spending in your European country of choice is going to be. The rest are almost one-for-one in terms of currency exchange – it’ll feel almost as affordable as home.

If you’re thinking of making a couple of stops across these European vacation hot spots, have no fear because we’ve got just the tips you need to
explore all of Europe on a thin wallet
.

In fact, an awesome
travel credit card
 just might be the thing you need to get more from travel expenses – check out our neat little
comparison widget
 and pick one that works best for you. Now go out there and make some memories, folks!

Have you been on a European adventure that’s just as affordable as the destinations we’ve listed up top? Share with us in the comments section below – everyone’s eager to hear it!

Speaking of affordable places, why not participate in our
Travel Getaway Campaign
 and get a
free
 return flight ticket to places like
Singapore
?

*Exchange rates are correct as at the time of writing and are subject to usual currency fluctuations.

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Austin Victor

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China’s Alipay, WeChat Pay Now Accept Selected International Credit Cards, Including Visa & Mastercard

(Image: Ant Financial)

China’s popular mobile payment apps, Alipay and WeChat Pay, both announced that they have enabled support so that visitors can now link international credit cards to these payment apps, including Visa, Mastercard, and Discover. This means that you’ll have an improved cashless payment experience as you pay for purchases and services just like a local while travelling across China.

In a statement, Alipay – which is operated by Ant Group – said that users will be able to link Visa, Mastercard, Diners Club, and Discover cards to its platform – after which they can then pay for purchases with Alipay as they travel within the republic country. Meanwhile, WeChat Pay allows the linking of Visa, Discover Global Network (including Diners Club), JCB, and Mastercard cards.

Tencent, who owns WeChat Pay, also shared a
detailed guide and FAQ
 on how to link international cards to its mobile payment platform. Key details include a user’s transaction limit and applicable fees. Specifically, there is a spending limit of 6,000 renminbi (RMB) per transaction, as well as a cumulative limit of 50,000 RMB and 60,000 RMB per month and year, respectively.

As for fees, WeChat Pay charges a transaction fee of 3% for any payments that exceed 200 RMB; otherwise, the 3% fee will not be applicable. It is uncertain if these transaction limits and fee apply to Alipay as well. Exchange rates, on the other hand, will be determined by the card organisation and issuing bank.

This latest update is a significant step forward for Alipay and WeChat Pay, both of which have been pushing for the acceptance of foreign credit cards since a while back. China’s tight regulations have posed some challenges to their efforts; however, in 2019, both of the payment giants received permission to allow the use of foreign credit cards on their apps. That said, only select Chinese merchants were allowed to process the cards.

Now, overseas visitors to the country can expect to enjoy a much better cashless payment experience, especially given the fact that most Chinese shops and restaurants generally prefer to accept mobile payments these days, instead of credit cards or cash. Prior to this, visitors often had to resort to cash payments as you must have a mainland Chinese bank account and local mobile phone number in order to sign up for an Alipay or WeChat Pay account (although there was an
Alipay Tour Pass
 that you could previously enable).

For Malaysians in particular, this development ultimately translates to a wider range of cashless payment options when we travel to China as even before this, we were already able to make cross-border cashless payments in the republic country through
Touch ‘n Go (TNG) eWallet
. TNG eWallet had partnered with Alipay+ to become the first Malaysian e-wallet that can be utilised for payments in China.

(Sources:
CNN
,
TechCrunch
, Tencent [
1
,
2
],
Mastercard
)

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About THE AUTHOR

Alex Cheong Pui Yin

Alex Cheong Pui Yin

Previously covered recruitment-related stories and had a short stint as a copywriter for the property industry. She subsequently developed an interest in investment and robo-advisors.

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5 Ways GO by Bank Islam Mobile App Makes Modern Islamic Banking Convenient

Technological advancements have made it possible for us to access virtually anything with only our smartphones or tablets. As such, why should Islamic banking be any different?

In 2019, Bank Islam launched its very own mobile banking app, GO by Bank Islam. Over the past two years, the app has evolved to become more user-friendly with five new features that make day-to-day banking more convenient.

Like most conventional banking apps, GO by Bank Islam allows you to make deposits, transfer money, pay your bills, and carry out other financial transactions. However, some new features of the app will make modern Islamic banking more convenient; let’s take a closer look at what these five features are:

1. Completely Shariah-compliant

Like all Bank Islam’s products and services, GO by Bank Islam provides the convenience of digital banking transactions that are efficient, secure and most importantly, adhere to the tenets of Shariah.

Customers can be assured that each service offered via Go by Bank Islam are 100% free from activities prohibited by Shariah, including riba’ (interest), gharar (uncertainty) or maysir (gambling).

2. Authorise transactions above RM10,000 with GO Secure

Formerly known as Transaction Signing, GO Secure is an authentication method to authorise transactions initiated via Bank Islam’s Internet Banking platform or GO by Bank Islam app.

With GO Secure, all GO by Bank Islam users can now initiate and authorise third party transfers up to RM50,000 conveniently on their smartphones or tablets.

Other security features available in GO by Bank Islam app include biometric log-in with Quick Touch (fingerprint) or Face ID, strict sign-in procedures, secure protocols for sensitive information such as passwords and transaction information, and more.

3. Carry out your donations / Zakat digitally

Sometimes, small good deeds such as charitable donations can slip our minds in the hustle and bustle of our daily lives. As such, e-Sadaqah (donation), one of the more recent features added to GO by Bank Islam, makes it easier to tap into our generous spirits. e-Sadaqah allows you to donate directly to Sadaqa House, as well as other NGOs, orphanages, and mosques, and more, so users can conveniently contribute or fulfil their Zakat obligations digitally.

For those who are unfamiliar, Sadaqa House is Malaysia’s first Islamic charity crowdfunding platform launched by Bank Islam in 2018. The platform aims to deliver an inclusive, positive, and sustainable impact for Muslim and non-Muslim communities.

4. Link your Tabung Haji account in just a few taps

GO by Bank Islam also makes it easy for you to save for future pilgrimages with an option to link your Tabung Haji. By linking your Tabung Haji account, you will have full access to your Tabung Haji account balance on GO by Bank Islam.

Not only that, but you can also conveniently carry our transfers from your Bank Islam account to your Tabung Haji account and vice versa – all within the app. If you have children, you can link their Tabung Haji Account to your app for easy monitoring.

5. Register for Hajj conveniently on your phone

Last but not least, with GO by Bank Islam, Hajj registration is a breeze. With only your smartphone or tablet, you can register yourself or carry out a group registration for up to 10 people. All you need is their Tabung Haji account number and ID number to facilitate the process. Once that’s done, you can also check on the registration status and, when applicable, print out the Hajj Registration Slip from the GO by Bank Islam app.

***

Be it day-to-day banking transactions or specific activities such as Tabung Haji account access, GO by Bank Islam offers the ease of conveniently carrying out financial transactions within the comfort of Shariah compliance, all in the palm of your hand.

If you’re already a Bank Islam account holder, why not download the GO by Bank Islam app here and experience the convenience of modern Islamic banking firsthand.

Google Play:
Download GO by Bank Islam here

App Store:
Download GO by Bank Islam here

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The Frugal Foodie Guide to Getting More For Less

If you’re a foodie or well, maybe just Malaysian in general, the idea of a truly scrumptious meal should be enough to put a great big smile on your face. But if your smile is slowly turning into a frown, it may be the result of your efforts to save money while skimping on good food.

Why torture yourself? Instead, try making use of discounted dining deals. It really is possible to #GetMore food for less money, if you know how to cleverly take advantage of the numerous deals that abound every day.

Get ready, we’re firing up the grill and showing you how to save big with discounted dining.

What is Discounted Dining?

Well, it’s any promo that lets you eat nice meals in participating restaurants for less. This is done through the use of discounts, one-for-one offers, cash vouchers and cash back rebates among others. And while it can be overwhelming to sift through abundant dining deals online or elsewhere, it could be well worth the effort if the discounts are satisfying enough to help you save more.

To really take advantage of such promos, you’ll need to learn to distinguish between the good, the so-so and the bad.

Here is what you need to know to make the most of dining discounts:

Finding Good Offers

How do you locate truly meaty offers? Here are three of the most common ways:

1)
Loyalty Cards
 give you points for the money you spend, and once enough points are accumulated you can use it to redeem special discounts and promos.

Signing up for membership is usually free but not always, as some cards like the
Pizza Hut Privilege Card
 will cost you RM45, but promises over RM300 in possible savings.

Will you really save that much? That will depend on your pizza habits, so ask yourself how often you would actually use the card and more importantly, can you easily recoup the card’s purchase price? We suggest that you do the math and consider carefully before paying for membership.

2)
Credit Cards
 usually provide dining offers that require you to pay with your card to redeem. However, you would obviously need a credit card (or debit card) to get in on these deals. Fortunately, we can help you find a
great credit card
 that keeps you supplied with delicious dining deals all year round.

For your convenience, we’ve also compiled the
latest dining promotions
 on offer with selected credit cards, so you’ll never have to miss out on tasty, lip-smacking deals again.

3)
Online coupon sites
 are probably where you’ll find the greatest bulk of offers generated every day. However, some sites, especially ones that offer flash sales are counting on the impulsive buying habits of online consumers and less so on offering good deals.

Group Buying sites post deals with what they claim to be super low discounts, and while some may be genuine, others that seem too good to be true, could in fact be duds in disguise. Take a good look at the terms and conditions as well as having a quick look at the restaurant’s regular menu if one is available online for comparison sake. Sometimes, restaurants offer separate ‘menus’ for coupon diners that are either vastly reduced in portion size or with cheaper ingredients. The only way to know if this is what is happening – is to find out if the offered items are on the regular menu in the first place.

A good way to avoid dud deals is to look for outright ‘cash voucher’ deals such as those that say ‘pay RM40 for an RM100 voucher at ABC Restaurant’. Read the terms and if you are able to use this voucher on most anything on the menu – you’ve got a better deal in hand.

Special Considerations for Online Dining Offers

Even with credit cards and loyalty programmes, reading through the terms and conditions of related offers is a must. However, you don’t usually have to worry much about the promotion’s legitimacy especially with reputable merchants. On the other hand, discounted dining offers from coupon sites could be a little shady at times.

In fact, some online deals are so restrictive that they are low on value even if the discounts appear enormous. If that is the case, you would be losing out instead of saving more. The best way to make sure you’re really coming out on top is to read the fine print.

These are the typical terms applicable to coupon site offers that require your attention:

a. Additional fees and charges

When deciding if an offer is really worth it, be sure to check if the price is inclusive of taxes, service charges and surcharges. Work out the final payable amount to evaluate if you are actually paying less or the same.

As a general rule for group buying sites, prices are not inclusive of taxes and service charges (unless stated otherwise). However, with some cash voucher deals, you may able to use it to offset additional fees.

b. Redemption periods

There is usually a validity time frame attached to any deal, therefore, before you buy, make sure you know when you plan to use it. You could end up wasting money if you can’t use it in time or if you intend to redeem before the redemption period begins.

It might be compulsory for you to book in advance for some deals, and you can expect that reservations will amp up towards the last few days of the promotion. You might end up completely missing out if you wait too long to make reservations, so try to book as early as possible.

c. Menu restriction

Some restaurants will place limitations on what you are allowed to order while others may provide a different menu for your specific discount.

Do call ahead to find out what your choices are on the special menu, so you can decide if it is something that you’d actually enjoy eating.

Also, if the terms are unclear, do clarify, especially on important details like the restaurant’s halal status. Your discounts will be rendered wasteful instead of worth-it if you can’t eat the food.

So now that you know how to scrutinise online discounted dining to save more, here are a few bonus tips to really keep you ahead of the game:

1)
Beware of fake deals
: It is actually possible to find somewhat bogus deals even on reputable sites. These promotions basically imply a certain discount, but in actual fact, you are being charged the same amount as if you were a regular paying customer. Check the restaurant’s website for price guides to give you an accurate reference and always perform a quick search online to help you find better deals where you could be saving even more.

2)
Review service
: Unfortunately, certain eateries have been notoriously rude to discount-dining customers. It’s not worth the savings if you’re going to have a bad experience. Look for real reviews online regarding the restaurant’s atmosphere and service towards discount-dinners.

3)
Go where you know
: Discounts for restaurants that you already frequent can be the most lucrative of all because you are probably going to spend money there anyway, so why not eat at a place you love, for less? Plus there’s less risk involved – you know the food, the environment, and you may even know the staff.

Staying Objective with a Discount Mentality

Discounts are a way of life, but don’t let it dictate the way you save or spend, especially with food. Similarly, refrain from buying into offers that you don’t really want as you’ll end up spending more instead of saving.

If the promo does not directly give you valuable savings, then just skip it. Instead, only accept deals that you hunger for. Now go grab a bite!

Did you like learning how to #GetMore when dining in this article? Follow our #GetMore hashtag on your favourite social media channels as we bring you more tips on how you can get more for your money in everything from travel to shopping and dining until the close of 2015. Who wouldn’t like to #GetMore for their money?

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The Pros and Cons Of Buying Term Life Insurance

Ideally, you should have your own medical and life insurance (you shouldn’t depend solely on your employee insurance coverage) as soon as you enter the workforce. Reason being, you need to have more monetary coverage for all your financial commitments including your student loan, car loan, rent or mortgage loan, home bills, helping your parents, and if you’re married, supporting your family.

After paying off all your commitments, it doesn’t leave you with a lot of money to pay for life and medical insurance policies, especially if you’ve just started working or are earning a middle-range income. This is where a term life insurance policy comes to your rescue, as it’s the cheapest way to have a basic life insurance coverage in the event of an untimely death. But is it suitable for you and your finances? We’ll explain what term life insurance is and its pros and cons for you to decide on your own.

What Is Term Life Insurance?

Term life insurance is sometimes known as the most affordable and simplest life insurance product, and is designed specifically for those who are seeking temporary coverage over specific financial commitments – whether it’s a debt, a loan, or as a final means to support a family after passing into the void.

In a nutshell, a term life insurance policy provides death and total permanent disability (TPD) coverages from natural and accidental causes for a specific period of time (a term) without any added cash or investment values. This means if you’ve purchased a term life insurance policy with a coverage of RM100,000, the amount will stay the same throughout your pre-specified term – or until it expires.

If a policyholder dies before the term is over, the beneficiary – usually the parents, siblings or a spouse – receives the predetermined death benefit in full. However, if the policyholder dies after the term is over, neither you nor your beneficiary will receive anything. Learn more about
term life insurance and how it works here.

The Pros

Lowest monthly or annual premiums

Term life insurance is usually considered the cheapest form of life insurance there is. Depending on your coverage amount, these days you can get term life insurance for lower than RM20 a month – that’s just a couple of hundred Ringgit per year! Of course, these depend on several other factors such as your age and lifestyle habits, but the fact is that term life insurance is an affordable option to Malaysians. Higher coverage amounts will cost you more in premiums, but it offers bang for your buck considering the peace of mind you get knowing there is a safety net if you’re no longer around to provide for those you care for.

The inexpensive premiums make it especially appealing to young working individuals who are just starting to develop their financial security or young parents who are looking to safeguard their family’s future.

Fuss-free application process

Term life insurance policies are generally easy to purchase. Most insurance providers offer it online, where you can purchase it after answering a series of personal and medical-related questions (honesty is the key here, you don’t want to end up with a revoked policy due to personal information discrepancies). What’s more, most term insurance policies don’t even require you to go through a medical checkup – you certainly get maximum convenience here.

Flexible yet straightforward

One of the biggest appeals about a term life insurance policy is that it’s open to most everyone who is under 65 years old and in good health. Some insurance providers even set their policy eligibility to as young as 16 years old to encourage the younger generation to purchase insurance coverage.

Its simple, straightforward nature also adds up to its many advantages; people from all ages and background can understand the product easily without the need to research on confusing legal terms.

The Cons

Less comprehensive coverage

By its very nature, term life insurance does give you a slightly less comprehensive level of protection when compared to whole life insurance. For starters, you may not know whether the term you have selected is sufficient. It’s hard to predict the future, especially when the future lies 15 – 30 years ahead. Of course, you can always renew your coverage when the term ends, but by then premiums could have increased or you may face difficulties if you have been diagnosed with any health problems along the way.

While some term life policies allow you to add on optional riders like critical illness coverage or accidental death cover for more holistic protection, do note that most term life insurance plans do not come with any cash value. Therefore, if you are looking for insurance coverage that comes with cash value or investment features, you are better of considering a whole life policy.

Premium considerations

While term life insurance policies can be quite straightforward, there is still some flexibility in terms of how you pay your premiums. There two kinds of term life insurance – yearly renewable term life and level term life. With yearly renewable term life, your premium increases after each birthday, which means you could have started out with an inexpensive premium but later on find that it has become slightly out of your budget.

If this is an issue for you, opt for a level term life insurance policy instead which will offer you a fixed premium rate for the length of the policy period which can be anywhere between 10 to 30 years. Of course, this requires a higher level of commitment compared to the more flexible yearly renewable terms, so make sure to have a think about which option you prefer.

Is Term Life Insurance The Right Product For You?

There’s no hard and fast rule when it comes to choosing the best life insurance coverage, it all depends on how much you’re willing to pay and what your financial needs are in the long term. The best thing to do is to identify all your current financial commitments, and from there try come out with an estimate to how they will amount to in the next 15 – 30 years. From there, you can begin to pinpoint the amount of coverage you need, and whether whole or term life insurance policy will suit you better.

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4 Reasons Why You Should Start Learning To Invest In The Global Markets

In the past, global investing has not always been something that seemed readily accessible to Malaysians. Expensive transaction fees and high starting capital made investing in foreign markets inconvenient, but technological advancements are beginning to bridge the gap between Malaysian retail investors and global markets.

According to Focus Malaysia, Malaysians had shown
keen interest in global tech stocks
on an investment portal with US-based semiconductor company Advanced Micro Devices (AMD) – a popular stock – having recorded a 114% increase in trading in April last year.

Branching out to global markets can be seen as advantageous to your portfolio as diversifying across asset classes, currencies, and markets may help reduce risk when it comes to investing. Even so, trading in the global markets comes with its own risks and challenges, so investors must do their due diligence and research before investing.

But, if you’re looking to diversify your portfolio and explore investment opportunities, here are four reasons why you can consider taking your investments overseas.

1. Easier And Cheaper In The Digital Age

It seems like people have not only been indulging in newfound hobbies like baking during the pandemic but also dedicating their free time at home to researching and trading stocks. Investopedia said that many people have used extra time in 2020 to
create and control their own portfolios.

Malaysians have been able to invest remotely and access the US and other listed securities via various secured online platforms for many years. However, more recently, the advent of online brokerage platforms has made it easier and cheaper for investors to open new accounts and invest directly through their smartphones.

For example, the Employee Provident Fund’s (EPF) very own online investment platform, EPF i-Invest, also allows its members to conveniently gain overseas investment exposure at reduced charges.

2. Putting Your Eggs Into Multiple Baskets

As mentioned earlier, investing in a foreign market may pose some challenges but it may help investors diversify by spreading out their risk. By investing in markets in different countries, you have less to worry about if one country’s stock market performs badly, as opposed to putting your full basket of eggs in only one country.

These days, we’re no longer limited by the location we’re based at, and with technology advancements, we can invest in foreign stocks that have high growth potential.

The value of diversification should not be undermined. In fact, according to the Employees Provident Fund (EPF), the EPF’s overseas diversification strategy has helped add value to its
overall performance last year.

As of the end of June 2020, EPF’s investment assets stood at RM929.64 billion, of which 30% was invested in overseas investments. In the second quarter of the year, 39% of the total gross investment income recorded was contributed by the EPF’s overseas investments.

3. Access To More Quality Companies

Investing globally also helps you tap into the potential of companies not listed in your local bourse. There are over 900 companies listed on Malaysia’s exchange but there are
over 41,000 companies listed globally
with a combined market value of more than US$80 trillion.

Some of the most sought after stocks today are multinational tech stocks like Apple and Microsoft which are listed on the New York Stock Exchange (NYSE) in the United States.

Malaysians are already recognising the potential of opening up their portfolio with overseas investments such as
 global tech stocks
. According to Focus Malaysia, nine out of the top 10 invested stocks by Malaysians in April last year on an investment portal amid the pandemic were technology companies such as AMD.

4. Possibly Better Returns

Lastly, owning foreign stocks will not only help you diversify your portfolio and hedge against risk, but also allow you to tap into the growth of economies aside from Malaysia’s economy. During a stay-at-home economy, technology has been an integral part of our daily lives with this seemingly to have translated to its performance in the markets.

As seen in the chart below, the US stock markets especially the Nasdaq 100 have shown tremendous growth in the past year. This is followed by the S&P 500 which tracks the 500 largest publicly traded companies in the US. In comparison, the US market strongly outperformed the other indices over the past decade.

Source: TradingView

***

While investing in global markets can help diversify one’s investment portfolio, a good combination of technical knowledge, experience, and skills are required to maximise opportunities.

One way to equip yourself with the right knowledge is to learn from an established academy, such as Beyond Insights that has been around for 13 years. You can now register for Beyond Insights’ online seminar titled,
“Global Investing Made Simple”

for free and learn how to trade in the global stock market with just four steps from founder Kathlyn Toh. Having coached nearly 5,000 students from all walks of life – business owners, financial controllers, accountants, doctors, stockbrokers, full-time traders, housewives, college students, and even retirees since 2008, Beyond Insights is an award-winning investment and trading education provider.

Find out more about Beyond Insights’ upcoming webinar here.

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How to Know if a Supplementary Card is a Good Idea

A supplementary card can be a financial helper to those who aren’t in a financially stable position to get their own credit cards. But while this is a boon for the potential supplementary card holder, as the principal cardholder, you’re the one who will face all the risks and responsibilities.

Let’s go through the scenarios for when it would (or would not) make sense to provide someone you care about with a supplementary card:

It Is A Good Idea…

When Someone Close to You Needs Emergency Credit

If a member of your family is not creditworthy (e.g. your child, retired parent, or unemployed spouse) but requires convenient access to cash, for instance, when travelling abroad, you might be right to give them one. After all, a supplementary card can help provide travel and medical insurance, emergency assistance, as well as other benefits accessible only by credit card.

When You Want to Combine Reward Points

Most cards allow you to accumulate your spending on both primary and supplementary cards. This should help reach minimum spending requirements for loyalty points and cash back rewards much quicker.

When You Want to Track Household Spending

Using a supplementary card to pay bills, buy groceries, and other family expenses can help you track your expenditures more efficiently. All outgoings will come under one statement which you can constantly monitor through online or physical credit card statements. It makes budgeting and managing your finances a much simpler task.

It Is
Not
 A Good Idea…

When You Are Giving it to Someone With Poor Money Management Skills

If the person to whom you are giving the card isn’t good with money, you could be setting yourself up for huge bills. While it’s true that you can set a lower credit limit, if the cardholder goes on to take out a cash advance and not pay it promptly, you’ll be liable for the interest rates
on top of
 the cash advance sum. This is not a situation that will end well.

You Are Worried About the Added Risk and Responsibility

If the supplementary cardholder loses the card or becomes a victim to online credit card fraud, you could be held accountable for their negligence. Even if it’s for a close family member, taking out a supplementary card would present you with great liabilities.

You Don’t Want to Pay More Fees

Depending on the card, you may need to pay annual fees for your supplementary credit card in addition to the principal card. In some cases, total excess fees might be high enough to negate the cash rewards. This is especially true if the card won’t be used very often as fee waivers usually require minimum swipes or spending.

What to Do After You’ve Decided

If you’ve chosen to forgo giving someone a supplementary card but still want them to have safe access to cash – get them a debit card instead. You can transfer money to the account as and when it’s needed.

However, if you
have
 decided to provide a supplementary card to someone, we recommend that you try these safety tips before you hand over the card:

Have a strict agreement on what the card can be used for i.e. “just for groceries” or “emergencies only”.

Set a low credit limit.

Register for an online account so you can check your statements regularly (at least once a week).

Look for cards with no annual fees, in addition to other favorable terms.

Sign up for card protection alerts.

Lastly, if the supplementary cardholder has no prior experience with credit cards or is unaware of how to safely use a credit card, you’ll need to play teacher. School them on the best credit card practices and how to avoid fraud cases. If you aren’t sure yourself, here’s a
list of articles
 to help you and your supplementary cardholder up to speed on the subject.

To get the best deals on principal and supplementary credit cards, make sure you shop around first. Need an easy way to review card benefits and terms? Just head on over to our credit card
comparison page
 and start exploring!

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How to Sell Collectibles

There are no limits to what people enjoy collecting for the sake of a hobby and others collect to make a living out of it. There are people who collect Coca-Cola cans from around the world, stamps,
old Malaysian Ringgit notes or coins
, watches and all sorts of novelties.

If you enjoy collecting, there may come a time you would want to sell these items. Let us take you through and show you how to make money off of your collection.

Appraise its Value

First and foremost when you are intending to sell something of this nature, you should get the real value of it. Not knowing the item well enough could put you at a disadvantage, particularly if you are negotiating.

Research online or join forums with similar interest. People on these sites would be able to point you in the right direction or have information on a good place to get a formal valuation on the item you have. In most cases, the easiest way to gauge what the market is willing to pay for the item is, going online to auction sites such as eBay. It will not guarantee the exact value but you would have a slight indication on how low or high the price range should be.

If you were in possession of an old Rolex and would like to sell it off, it would be recommended that you go to a Rolex service centre to know the condition of the watch, including the internals. They should be able to give you a rough indication of what it is worth and how much it would cost if it isn’t in tip-top condition. This allows you to know how much discount (if any) you should give your item. Alternatively, you could check with antique or pawn shops that buy these items to see what prices you may fetch.

Where to Sell?

Once you have established how much your item is worth, you now have to decide on your point of sale. This determines how much you make in the process. If you would like to sell it quickly, you may have to sell it to a shop which specialises in the field. Bear in mind, they will not give you the full value of the item as they have to resell it after that for a profit and you could very well see a significant portion of its value getting knocked off.

If you have the patience to do some research and sell the item yourself, you would probably get a better return on your investment. Your points of sale could include friends or groups on Facebook, Instagram or even Twitter. If you prefer not to mix business with friends, then you could try posting it on auction sites. Putting it online also no longer limits you to the borders of the country you live in. You may sell the item to the world if there is a demand for it elsewhere.

The problem with selling your item online is that people tend to be rather apprehensive as there are many fakes who try to pass off as the real thing. If you are willing to invest a little more, send the item for authentication by a recognised third party organisation that is able to provide certification. For example if you were intending to sell old Malaysian Ringgit banknotes, send it to
Paper Money Guarantee
 where they will grade it and certify it. Bodies that are recognised worldwide would provide you better credibility, as well as make it easier should you want to sell it to a buyer overseas.

Be Fair & Realistic

Selling an item does not only depend if the item is genuine or not. While it is the most important aspect, condition of the item plays an equally important aspect when determining how salable the item may be. A rare RM2 banknote won’t have a special price tag if it has been through the washing machine via your pocket back in 1996. It is important to be realistic and do some research to ensure you sell your item for a fitting price.

What kind of items do you enjoy collecting? If you have any interesting stories or tips on how to sell these treasures, tell us in the comments below.

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Digital Investing - Is It Right For You?

If you’ve thought about entering the stock market in the past year, chances are you’ve probably heard about Rakuten Trade. The digital equities broker has been making waves in the news over the past few months — first with
its record 11,000 new signups in March last year during the MCO
, and later with the
announcement of its maiden profit after being in operation for less than three years
.

If you are unfamiliar with the online trading platform, here’s a little background.

Rakuten Trade provides the services of a traditional broker but with the added accessibility of being completely digital. So, sign-ups, deposits, trades, withdrawals, education, and rewards are carried out without any face-to-face engagement required.

Even with these conveniences in mind, you might be wondering if choosing a digital platform like Rakuten Trade over a conventional broker is the right choice for you. So, we’ve identified five types of traders that would find Rakuten Trade’s features appealing.

So whether you’re an Independent, a Deal Seeker, a Jet Setter, an Online Rookie or a savvy Digital Guru you’ll probably find Rakuten Trade quite appealing. But if none of these personalities speak to you, there’s always room for a 6th personality waiting to be discovered on Rakuten Trade.

Sign up here for a FREE trading account.

Disclaimer:

This advertisement has not been reviewed by the Securities Commission Malaysia. As a reminder to readers, any investment involves risk as such any trading done on Rakuten Trade is at your own risk. We advise investors to read and understand the contents of the disclosure document or any relevant agreement or contract before investing;

understand the risks involved in relation to the product or service; compare and consider the fees, charges and costs involved; and make your own risk assessment and seek professional advice, where necessary.

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Why You Should Do Business With More Than One Bank

It’s true that one
could
 lose on interests if their savings are split between banks. But this does not have to be the case, in fact, having multiple accounts could actually earn you better interests in addition to other perks.

Here are the reasons why you might want to consider having more than one bank account:

1. Protect and Secure Your Savings

If all the money you earn goes into one account – the very same account that you pay bills and shop online with, you might be facing a security risk. More so if this account is attached to a debit card which you utilise often since these tend to have lesser protections than credit cards.

It might be a good idea to have a separate account for your online banking and debit card uses, for which you can easily deposit funds every month for these purposes alone. This might protect your big bucks from cases of fraud or identity theft where only a portion of your money is vulnerable, leaving your main account secured.

2. Avoid Banks From Dipping into Deposit Accounts to Offset Borrowings

If you have a loan with a certain bank as well as a savings account or other deposits with them, they may have the ‘right to set-off’ what you owe them. You could end up losing more than just your savings if you default on loan payments or credit card bills.

For instance, the bank could liquated the deposits you have with them, even ones that have not yet reached maturity – meaning you may incur penalties and lose interest earnings on top of your diminished savings.

3. Maintain Deposit Insurance Coverage

If your savings and deposits (e.g. fixed deposits, savings and current accounts, etc.) are very healthy, it might make more sense to spread your money to maintain insurance coverage for your funds.
PIDM
 only covers “up to RM250,000 per depositor, per member bank”, and this amount is inclusive of the principal amount and its interest earnings.

On the other hand, you will be covered if you divide your money to remain below the threshold by depositing in different banks.

4. Reach Separate Saving Goals

If you want to save for a special occasion or project, keeping all your money in one account may not be an effective way to reach your savings goals. This is because you would have to monitor the account as a whole without the ability to quickly track dedicated savings.

Opening a separate account for a single purpose might be a better way to accumulate your savings. What’s more, you can set up an automatic deduction from your primary account in another bank to your ‘special’ higher interest savings account every month to save more successfully.

5. Enjoy Better Perks

All bank perks are not created equal, some may actually be better than others. Bank A may offer higher interest rates for savings while Bank B offers enhanced terms for fixed deposits. Also Bank C may have credit card promos that are more your speed or offer attractive loan packages that interest you.

Thus there is no harm in shopping around and comparing the benefits of different banks, just remember to keep track of all your accounts. Don’t allow them to go dormant and reach a negative balance as this might appear in your credit report.

Do you have only one bank account? Don’t miss out on better rates and terms, see what the others offering for
savings
 and
fixed deposit
 accounts. Let us know if you have anything to add to this article in the comments section down below!

Image credit: Rob Pongsajapan’s
photostream

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Standard Chartered Friend Get Friend Get Motoring

Standard Chartered Credit Card – Friend Get Friend Get Motoring

Sign Up a Friend or Family Member and Get Free Touch ‘n Go Top Ups

Here’s an offer from Standard Chartered that will have you blasting down the Highways for the New Year. Get a friend or family member to sign up for a Standard Chartered Credit Card and you’ll be given a
Referral Bonus Touch ‘n Go Top Up
.

Sign up between 1 and 9 folk and you’ll get a RM50 Top Up, 10 – 19 folks for a RM70 Top Up, work your charms on more than 20 folks and you’ll get RM100 on your Touch ‘n Go.

If that sounds hard consider that Standard Chartered is currently
offering a minimum of RM300 Cash Back with every new Credit Card.

So, what are you waiting for?
Sign Up Now
.

Terms and Conditions Apply

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RM100 E-Wallet Credit To Be Disbursed To Recipients In Fourth Quarter Of 2023

The Ministry of Finance (MoF) has revealed that the recently announced RM100 e-wallet incentive will be distributed to eligible Malaysians in the fourth quarter of 2023 (4Q23). In other words, recipients can expect to receive the e-wallet credit sometime between October and December.

In a post on Twitter, MOF also shared that it is currently ironing out the details of the initiative with its stakeholders, but did not mention which e-wallets will be involved. It reiterated as well that the initiative is expected to benefit more than 10 million recipients from the B40 and M40 income group.

KREDIT E-TUNAI SEBANYAK RM100 KEPADA SEMUA RAKYAT DEWASA MALAYSIA YANG BERPENDAPATAN RM100,000 SETAHUN DAN KE BAWAH
#MalaysiaMADANI

pic.twitter.com/OrTBe18vi1

— Ministry of Finance🇲🇾 (@MOFmalaysia)
August 1, 2023

Announced by Prime Minister Datuk Seri Anwar Ibrahim just last week during the launch of the
Ekonomi Madani
 framework, this
latest e-wallet incentive
 is set to benefit individuals who earn an annual income of RM100,000 or less. The prime minister also said that this new incentive is inspired by the success and impact of previous e-wallet credit programmes, with the most recent being the
eBeliaRahmah programme
 for youths.

Meanwhile, other similar initiatives that have been rolled out in past years to encourage the use of e-wallets include the
e-Tunai Rakyat
,
ePemula
, and
eBelia
 initiatives. In addition to the e-wallet credit allocated by the government, e-wallet service providers that participated in these previous efforts also provided additional perks – such as discount vouchers – to benefit the recipients.

(Source:
Ministry of Finance
)

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Alex Cheong Pui Yin

Alex Cheong Pui Yin

Previously covered recruitment-related stories and had a short stint as a copywriter for the property industry. She subsequently developed an interest in investment and robo-advisors.

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LIAM, MTA Announce Flood Relief Measures From Life Insurers And Family Takaful Operators

(Image: Channel News Asia)

The Life Insurance Association of Malaysia (LIAM) and Malaysian Takaful Association (MTA) have announced a list of relief measures to assist individuals who were affected by the recent severe floods.

In a joint statement, LIAM and MTA said that thousands of people have been displaced from their homes due to the catastrophe and may face difficulties in paying their insurance premiums on time. As such, life insurers and family takaful operators have agreed to provide a range of assistance for them, specifically:

Extending the timeline by a few extra months for policyholders to pay their premiums and contributions
Restructuring the payment modes from annual to monthly basis
Extending the grace period (usually 30 days) to a longer timeframe for payment of premiums and contributions
Reducing or waiving the interest charges for policy loans and policies under the Automatic Premium Loan option
Waiving the printing cost for the replacement of insurance policies, takaful certificates, and medical card

Note, however, that these aids will also be subject to the individual terms and conditions from each insurer and takaful operator, so policyholders are encouraged to seek for more details from their agents.

The president of LIAM, Loh Guat Lan said that both associations deeply sympathise with all flood victims in this difficult time, especially with their homes damaged and livelihoods disrupted. “Our member companies are committed in providing the necessary support to affected families so that they can have the peace of mind to know that their insurance needs are taken care of,” she said.

The chairman of MTA, Elmie Aman Najas also chimed in with a similar sentiment, commenting that the flood has taken its toll on the family, business, and wellbeing of the victims. “The flood have resulted in the evacuation of many victims from flooded areas to safer grounds mainly causing the family to lose contact with their family members, losing business, and some even lost their loved ones in the floods, and it is timely for the industry to play their role and responsibility in helping the victims,” he said.

Policy and certificate holders who wish to contact their respective insurers or family takaful operators can check
this list by LIAM and MTA for the official hotlines and contact details
.

Aside from LIAM and MTA, the General Insurance Association of Malaysia (PIAM), too, has offered aid to affected individuals in the form of a
one-off subsidy of up to RM500
 for the clean-up of vehicles that were directly affected by the recent floods.

(Source:
LIAM
)

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Alex Cheong Pui Yin

Alex Cheong Pui Yin

Previously covered recruitment-related stories and had a short stint as a copywriter for the property industry. She subsequently developed an interest in investment and robo-advisors.

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HLB Implements Emergency Lock Feature, Cooling-Off Period To Improve Online Banking Security

(Image: The Star)

Hong Leong Bank (HLB) is introducing two new features to beef up its online banking security against financial fraud, namely an Emergency Lock function and a cooling-off period. Both features are set to come into effect starting from tomorrow.

The Emergency Lock function is essentially a “kill switch” that can be activated when customers suspect that they have fallen prey to scams, or if their HLB Connect access has been compromised. Once triggered, all new transactions on HLB Connect will be blocked, with the exception of scheduled instructions or recurring transactions that were set prior to the activation.

However, customers will still have access to their HLB Connect account on the website and app to view their account balance. Similarly, their credit and debit card transactions, too, will not be affected when this feature is triggered. After activating the Emergency Lock, customers are also required to contact HLB at 03-7626 8899 to make a report, as well as to get further advice from the bank.

The Emergency Lock can be found on both the HLB Connect app and the HLB Connect Online website. For the HLB Connect app, customers will see the Emergency Lock immediately on the login screen. Meanwhile, those who wish to activate the feature through the HLB Connect Online website can do so by clicking on the “Security Reminder” tab (located at the top right corner of the page).

Aside from the Emergency Lock, HLB is also implementing a cooling-off period that will take effect when customers install the HLB Connect app and enable AppAuthorise on a new device, and when they increase their daily transaction limit on HLB Connect. Essentially, this means you will only be able to authorise your transactions using AppAuthorise or tap into the new transaction limit after the cooling-off period is over.

On its website, HLB did not specify the length of this cooling-off period, noting only that “the duration of the cooling-off period will be shown to you” during the process. Meanwhile, customers who are going through the cooling-off period after requesting to increase their daily transaction limit can still continue to transact like normal within the existing transaction limit. Also, if you make another request to increase your daily transaction limit before the first cooling-off period is over (after submitting a first request), the timer will reset, and you will be required to wait it out all over again.

These two new security features for HLB’s online banking services are in line with Bank Negara Malaysia’s directive for banks to implement
five additional safeguards against financial scams
, as well as the government’s recent call to
introduce “kill switches” as another security measure under Budget 2023
. Other security features that HLB had also put into place prior to this include its
AppAuthorise feature
, which substitutes the need for one-time passwords (OTP) via SMS to verify transactions, as well as limiting each user’s access to HLB Connect app to only one device.

(Source: Hong Leong Bank [
1
,
2
])

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Alex Cheong Pui Yin

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Previously covered recruitment-related stories and had a short stint as a copywriter for the property industry. She subsequently developed an interest in investment and robo-advisors.

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Standard Chartered Also Revises Cashback Terms For JustOne Platinum Mastercard, Effective 1 February

In addition to the revision for the Liverpool FC Cashback Credit Card, Standard Chartered is also revising the terms of its other popular cashback credit card, the
JustOne Platinum Mastercard
.

The revision will effectively streamline the cashback you can earn from the three categories: Auto Bill, Petrol, and Online, and introduces a cashback cap of RM20 per category, per month. However, the cashback tiers remain the same, which means you still earn a maximum of RM60 cashback with RM2,500 spending in the three categories.

Before 1 February 2021

After 1 February 2021

Cashback on Auto Bill, Petrol, and Online transactions

Cashback on Auto Bill, Petrol, and Online transactions

(No changes)

Cashback capped at RM60/month, but cashback for Online is capped at RM30

0.2% uncapped cashback for other retail transactions

Cashback cap of RM20/month per category

0.2% uncapped cashback for other retail transactions

Cashback tiers for Auto Bill, Petrol, and Online:

5% cashback for monthly spending between RM1,000 – RM1,499, capped at RM12

10% cashback for monthly spending between 1,500 – RM2,499, capped at RM28

15% cashback for monthly spending of at least RM2,500, capped at RM60

0.2% cashback for other retail transactions with minimum monthly spend of at least RM1,000

Cashback tiers for Auto Bill, Petrol, and Online:

5% cashback for monthly spending between RM1,000 – RM1,499, capped at RM12

10% cashback for monthly spending between 1,500 – RM2,499, capped at RM28

15% cashback for monthly spending of at least RM2,500, capped at RM60

0.2% cashback for other retail transactions with minimum monthly spend of at least RM1,000

(No changes)

Currently, the cashback is pooled between Auto Bill and Petrol (RM30), and a separate pool for Online (RM30). The new cashback revision will see an individual cashback cap for each category but with a lower cap of RM20, which means you’ll earn cashback for up to RM133.34 spending per category at the 15% tier.

With no changes to the spending tiers and total cashback, the maximum effective cashback rate still stands at a respectable 2.3% – BUT you’ll need to spend at least RM2,500 per month just like before. The effective cashback rates for the lower spend tiers are unchanged as well at 1.2% (RM1,000 – RM1,499) and 1.87% (RM1,500 – RM2,499).

All things considered, the changes are
not as huge as that on the Liverpool FC Cashback Credit Card
, but it’s likely that if you own either card, it’s time to tweak your credit card strategy come 1 February 2021.

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Pang Tun Yau

Pang Tun Yau

A seasoned tech journalist who now focuses on his other passion, Pang is a firm believer in old-school DCA and optimised spending.

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5 Travel Hacks For Buying Cheap Flight Tickets

Flight tickets can make up a huge part of your budget for a holiday. However, with a little effort on your end, it’s more than possible to reduce the cost of flight tickets or get more value out of it no matter your destination. Making the right choices and paying less for your flights will go a long way towards making your overall trip expenses more manageable – so here are some tips on how to get the best value when buying flight tickets.

1) Make Use Of Your Credit Card

Credit cards come with benefits, and you should be making full use of yours especially when it comes to travelling. For example, something as simple as using your credit cards to book your flights can give you complimentary travel insurance for your upcoming trip.

But, the main benefit of using your credit card to buy flight tickets is to rack up rewards points or earn cashback which reduces the overall amount you effectively pay for the tickets. Credit card enthusiasts will always prioritise using an air miles credit card when buying high-value items like flight tickets. Air miles credit cards are credit cards that allow you to earn air miles, either directly or through the redemption of credit card points offered via their rewards catalogue. In turn, these air miles allow you to redeem free flights in the future, or upgrade your economy class seat to a business class one. The theoretical returns these credit cards offer are very high, which is why there are passionate communities of credit card users whose goals are to rack up points to fly business or first class for free.

Moreover, unlike
cashback credit cards
, air miles credit cards do not have earning caps, which is why they are the best choice for making big purchases like buying flight tickets. That being said,
cashback cards
 are fuss-free with immediate returns, so if you do not have an air miles credit card, you should definitely use one to get a small but sure return on purchasing your flight ticket.

Another type of credit card that is favoured by seasoned travellers are those that offer you
free airport lounge access
. These credit cards will gives you free access to comfortable airport lounges which would normally require an entrance fee or a membership. As each entry into an airport lounge can cost over a hundred Ringgit, this is definitely a valuable credit card perk for travellers. Some cards offer both attractive air miles earnings rate with lounge access, such as the
Maybank 2 Premier
 or the
AmBank World Mastercard
, making them very popular choices for those who qualify for them.

2) Take Airline Frequent Flyer Programmes Into Account

While most budget travellers take the cheapest flights, some seasoned travellers prefer to fly with their preferred airline where possible because it brings them more value in the long run. It may sound counter-intuitive, but for frequent fliers, it pays to be loyal to one airline instead of simply choosing the flight that is the cheapest. This is because most airlines have their own loyalty programmes, rewarding you in the form of air miles for every flight you take with them.

While each full-service airline offers its own frequent flyer programme (such as
Malaysia Airlines’ Enrich
 and
Singapore Airlines’ KrisFlyer
), the airlines also fall under different airline “alliances”, which are groups of airlines that cover a larger network of routes with less overlap (benefitting all airlines in the alliance). As you rack up air miles and unlock higher tier statuses, you also unlock higher tiers in the alliance as they are normally tied to one another. For example, the
Enrich Gold tier
 is the equivalent of
oneworld’s Sapphire
 – you enjoy Sapphire perks when you travel with a oneworld alliance airline if you are an Enrich Gold member. Plus, you will still earn Enrich miles when you fly on a
oneworld alliance airline
!

The miles you earn can be used to redeem free flights or offset part of a flight’s price. You can also use your air miles to upgrade your seat up to a higher class. So, depending on your preferences, the miles you earn lets you fly more…or fly in style. And, with a good air miles card, you further accelerate the rate at which you earn air miles, which is why a free business class flight is more than realistic.

Obviously, it’s easier to accumulate a sizeable amount of points if you make it a habit to fly consistently with one airline. Although there are a few factors at play, being able to claim a free flight would usually give you more value for your money in the long run than saving a hundred ringgit or so flying with a few different, cheaper airlines. However, taking flights isn’t the only way that you can rack up air miles – as you’ll see when we move into our final point.

3) Buy Flight Tickets During Sales

Before buying flight tickets online were a norm, physical travel fairs were a must-go if you wanted to get cheap air fares. The bi-annual MATTA Fair is the most popular of these fairs, known for offering discounted flights, cheap travel packages, and flight-and-accommodation deals. Although you can still get some good deals from the MATTA Fair and other travel events, these days it is just as easy to find flight discounts online.

AirAsia is known for its cheap seats for BIG Members during its seasonal sales. The AirAsia BIG Sale, which lasts about 2-3 days, sells tickets as cheap as RM12 for flights during the stipulated travel period – which is usually about 5 months from the booking window. Meanwhile, the monthly AirAsia Final Call offers big discounts when you redeem flights with BIG Points for immediate travel. If you don’t have enough BIG points for redemption, you can always top up the balance with cash.

Other airlines also have their own promotions and sales. However, like with AirAsia, you may be restricted to last-minute flights or have to book far in advance, so be prepared to be flexible with your travel dates. Remember, the sales are out there – you just need to know when they are happening! Social media or signing up for email alerts with different airlines are probably your best bet for keeping track of any promotions offered.

4) Make Use Of Travel Aggregators

Outside sales periods, it’s easier to compare prices when your options are all in one place. A good flights aggregator like Skyscanner or Google Flights lets you search for the cheapest flights, with options to filter through different factors like flight duration, departure time, transits, and airlines.

These search options are important as they’re the key to finding a cheap flight ticket. For instance, certain airlines are known to be pricier than others. Flight prices also fluctuate depending on the time of the day, week, or season. And if you’re open to layovers and longer journeys, you will have more choices besides just opting for direct flights. Using an aggregator will allow you to play around with these selections and compare prices more easily.

Moreover, some companies like Expedia and Traveloka (and even some airlines) offer bundled deals so you get cheaper prices if you book your flights and accommodation together. You can even add on airport transfers and other travel experiences to your booking to get cheaper prices in this manner.

5) Look Out For Hidden Expenses

Although flight aggregators are useful tools, avoid getting carried away with the low prices advertised when you haven’t yet read the fine print. This is especially important when it comes to budget airlines. While the price of the flight ticket itself may be temptingly cheap, you need to take into account things that carry additional fees like check-in baggage, seat allocation, and using your credit card to buy your flight tickets – most budget airlines have these charges, so be extra careful when you’re purchasing.

So, when comparing prices, make sure to take all the extra charges into account. Let’s say you wanted to choose Budget Airline A because the flight fare was RM180 cheaper than Airline B. However, Budget Airline A charges you RM160 to check in baggage, RM10 to sit next to your partner, RM15 for an in-flight meal, and RM10 for a blanket. Meanwhile, Airline B provides all of these extras for free. In this scenario, you would end up paying more for a flight on Budget Airline A despite the cheaper fare price.

In a similar vein, don’t be overeager to book a flight that departs in the wee hours of the morning just because it is cheaper. Public transportation options may be a bit scarce if you need to get to the airport by 4a.m., which means that you might be forced to pay extra to get a taxi instead. Although this may seem like a menial consideration, paying attention to small details like these will help lessen your travel expenses overall.

Look For Both Cheap Prices And Good Value

You’ll notice that although cheap prices are great, they shouldn’t be the only factor that determines how much value you can get from your flight ticket. So, go ahead and look out for flash sales and the best travel deals, but don’t forget to take into account things like hidden charges, credit card perks, and loyalty programmes when deciding which flight ticket is the best choice for you. And if you’re on the look out for a good travel credit card, make sure to use our
credit card comparison tool
 to make your search easier!

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