If ASB Pays 5.4% in 2024, This Is the Return You Actually Get

Assume you take ASB financing for Amanah Saham Bumiputera (ASB) of RM 200,000, with a monthly commitment of RM 988. You end up with a net return of RM 2,375. If you invest in ASB without any financing, the net return you get is RM 350.

These numbers come from the actual calculation in the Excel file below:

The gap between ASB returns with bank financing and returns on your own savings comes down to these factors:

1. The promotional financing rate the bank gives for the first 3 years: 4.2%.
2. A return assumption of 5.4%.
3. A management fee assumption of flat RM 702 a month for 12 months.

This is not me encouraging anyone to take a bank product. But it is worth a conversation.