ASB..........FD

Since it's already known to many that we can no longer use ASB to pledge for overdraft purposes, I was thinking of using Fixed Deposit instead....

I was at the bank the other day signing some document for my ASB loan, and I took the opportunity to enquire about pledging the FD for O/D purposes.

First and foremost, we all know that the FD return is low. Seriously low. About 3% if I'm not mistaken.

Secondly, the bank will give you 1:1 for the overdraft. So if you have RM30k in your FD, you can pledge the amount for your od.

Third, why would anyone wanna do that? Well...for some and for me, OD has helped me a lot in 'enhancing' my financial being. It has helped me in diversifying my investment. So, I was just thinking, if I have some cash to 'spare', I'll put it in FD and then pledge it for OD.

To be honest, my OD account is not ''big'' but it is enough for me to use to spread my investments and my risk in different baskets.....

Hence, I believe, by 'expanding' my OD, I could have some 'ready' cash with me at any one time.

I've yet to determine whether to go ahead with this small 'project' of mine or not.....

Let's see how it goes lah....