Category Finance & Investment

Benefits of Using a Credit Card to Pay Your Insurance Premium

June 10, 2017 Finance & Investment  No comments

Are you paying for an insurance premium on a regular basis? If you do, then how do you pay for it? In Malaysia, most insurance companies accept payments through banks. But let’s admit it. Not everybody has the time to go to the bank. Sometimes, locals banks even have long queues where you will have to wait for an hour before it’s finally your turn to deposit money. The quick fix? Pay insurance premium by credit card. Here are some benefits of doing so:

  1. It’s Convenient Your bank can arrange automatic deduction using your credit card. Setting up automatic payments also guarantees that you do not miss paying your premiums. This can be very helpful especially if you are the type who tend to forget deadlines for bills. Most insurance companies only allow a maximum of a 30-day grace period for you to pay your premium. If you go past the grace period, then it is possible that your policy will lapse. The insurance company has the right to terminate your policy due to excessive delay in payments.
  2. It Saves You Time Because the premium is automatically credited to your account, you do not have to head to the bank or spend time on online banking. It is also easier than writing out a check and driving to the post office to mail it.
  3. It Saves You Money This is by far the biggest advantage of paying your insurance premium through credit card. Most insurance companies offer discounts for paying an entire premium up-front.

Take note that you will not earn rewards by using your credit card to pay for insurance premiums. You may want to ask your bank about this. At OCBC Malaysia, payments to financial institutions and insurance companies are excluded in online transactions or those that were covered with cashback rewards. However, your biggest reward here is the convenience. If you are interested in paying your premiums via credit card, feel free to make an arrangement with your bank.

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Why You Need to Have a Credit Card in Malaysia

May 14, 2017 Finance & Investment  No comments

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For an extended period, many Malaysians opted not to own a credit card. The trend starts to change nowadays, with a constant rise in the usage of credit cards in Malaysia. If you’re on the verge of applying for one but still not sure of its benefits, read on for its many advantages that plain old cash simply don’t have.1

  1. They are faster and more secure

Transactions are much more secure, swift, discreet, and organized than ever with a credit card. And if it’s lost or stolen, you can simply call your bank and report it. The bank will deactivate it right away. Then, you can simply go to the bank and replace the card.

  1. They make large transactions more practical

This is both a small, yet a huge advantage at the same time. One that cash cannot easily match. In the past, you’ve made significant transactions with the use of written cheques to ‘manually’ transfer funds to the beneficiaries. But these have their problems. Mainly, you need to write down sensitive information on a cheque – information that could easily be used to perpetuate fraud.

  1. They have less risk of causing additional costs

Aside from the problem of data theft we’ve mentioned above, using cheques often has a risk of additional costs. If you don’t have the necessary funds in your account to cash a cheque, you face a bounced cheque. This often results in fees you have to pay in addition to having a voided transaction. Finally, you have to wait several days for the cheque to be verified and approved.

  1. They are more versatile Credit card transactions are instantaneous. The moment you input your card number, card expiration date, security number, and cardholder name, you’re done. There’s no waiting for verification or approval.
  2. They can be a solution in case of emergencies

With a credit card, you have the option of overdrawing on your account to make transactions you can’t afford to miss. Be advised that this isn’t a desirable option, and you will be paying it off with interest. But it can be a valuable safety net in emergencies. And you have the option of setting up measures to prevent any overdraft from occurring at all.2

Conclusion

Credit cards have much in the way of versatility and grace that you can benefit from. From the increased security, the swiftness of transactions, efficiency, and convenience, credit cards offer advantages that neither cash nor cheque can match. They make paying bills, installment plans, debt, and purchasing expensive items much easier. If you want a peace of mind and an easier time handling money and expenses, it may be time to consider applying for a credit card.

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Do You Really Save With Cash Rebate Credit Cards?

April 9, 2017 Finance & Investment  No comments

This is a kind of question that almost every credit card holders ask themselves now and then. Usually, when using your credit card, you delegate the financial transaction to your bank instead of using your own cash. After using it for quite some time, you would be able to earn reward points and cash rebates.

 

Cash Rebates and Credit Card Reward Points – What’s the Difference?

There are fundamental differences between cash rebates and credit card reward points. These systems were created to encourage credit card holder to use their cards more often.

 

Reward Points

Basically, the credit card reward points are a non-transferrable and non-refundable bonus that you get for using your credit card for your financial transaction. For instance, you used your credit card for your groceries, pay your bills online, pay for your dinner in a restaurant, or buy movie tickets. You will receive a point or two for doing so. The points are then stored in your personal account. You will get the benefits of the reward points in the form of free air miles, hotel discounts, and other exciting freebies that your bank offers at the moment. Since the points are non-transferrable and non-refundable, you won’t be able to convert it to cash.

Reward Points

 

Cash Rebate

The cash rebate, on the other hand, is a good way of getting back a percentage of what you spent using your credit card. It’s like a refund for every certain amount that you spent. Most of the credit card companies offer as much as 2% cash rebates every month. This may not seem like a good idea at first because you need to use your credit card more often. However, as time goes by, you’ll be able to reap the benefits of your cash rebates.

If you have earned enough cash rebates, you can use it to pay for your petrol, get discounts for your appliances purchase. Since the rebates are actual cash, there is no limit to what you can do about it. You can also get a cash rebate as a sign-up bonus.

Cash Rebate

 

In Conclusion

So, can you really save money with cash rebate? The answer is definitely yes! As long as you are responsible with the way you use your credit card, you can absolutely save money and use it for other purchases. If you are looking for the best cash rebate credit card in Malaysia that offers cash back percentage, you can compare their benefits online. Better yet, contact a financial advisor and meet him in person to get your questions answered.

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A Plan for Successful Investing: 5 Tips

August 8, 2014 Finance & Investment  No comments

There are daily news stories about the crisis in personal finances. From soaring debt to bankruptcies to poor retirement planning, it’s easy to feel pessimistic. Regardless of the nationwide state of affairs, however, your financial security depends in large part on your personal investment plan. Keep these simple tips in mind and you’ll be well on your way to investing success.

 

 

 

Budgeting

It’s impossible to achieve investment success if your day-to-day finances are a mess. Begin with a realistic budget of income and expenses. This allows you to understand how much money you can set aside for investments and for the ever-important “rainy day fund”. Most experts agree you should save three to six months’ worth of expenses in easily accessed emergency savings before you begin long-term investmenting.

 

Discipline

In your budget, set a figure for regular investment contributions and stick with it. Don’t quit when your budget gets tight. Investment contributions should be one of the last items to compromise when your expenses get out of kilter.

 

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Diversification

You’ve heard the old saying, “Don’t put all your eggs in one basket.” When it comes to investing there’s no better advice. Allocate your money among several asset classes. That way, a bump in the road for one part of the economy, one industry or one company won’t sink you. Your money should be split between cash, fixed income (bonds and government securities) and stocks at a minimum. You may also want to consider precious metals, commodities and real estate, but the key is diversification.

 

Cost Consciousness

It’s very easy to lose significant returns through high investment costs. Personal advisors can be expensive and they most often fail to beat broad market performance, so the use of mutual funds is a great place to start. Unfortunately, many such funds also have high management expenses and fail to outperform the general market over time. For these reasons, many investment experts agree that using low-cost exchange traded funds (ETFs) and similar instruments that carry low administrative costs and that track a particular market or index are a great, cost-effective alternative.

 

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Composure

The best investors keep emotion out of the equation. You have a lifetime to work at building wealth, so the daily ups and down of the markets have very little bearing on your long-term success. Keep tabs on your investments, but don’t watch them by the hour and avoid making snap, emotionally based decisions.

There are a number of recommended books that provide additional detail on successful personal investing. The strategies they discuss and these tips are time-tested proof that steady, disciplined, well-diversified investing can help most anyone achieve their financial goals and the wonderful peace of mind that goes with them.

 

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3 Money Tips to Help You Save for a Long Term Goal

July 30, 2014 Finance & Investment  No comments

When it comes to saving money, it’s not so difficult with a proper plan in place. You just need to be smart and know good ways of managing your money. If you have a long term goal of buying a car or a home, what you do now can ultimately affect what goes out later. Here are a few tips to help you save money.

Learn how to budget your shopping. When it comes to buying groceries, not only get coupons from your local paper, but see if you can get a savings card. You can normally apply for these free of charge. It’s an excellent way to save money and you can get some great deals especially on store brand items. You don’t always have to go for items that are name brand. Also, you can buy in bulk to save money on frequent shopping trips.

When you go to work, make sure you pack your lunch. Spend sometime during your weekend and set up a few meals that you can take with you during the week. This way you can save a lot of money and eat healthier. That trip to Starbucks or a lunch at a restaurant or fast food place can easily zap your pockets. You can ultimately save 50 to 100 dollars a week. It’s okay to treat yourself every once in a while on a paid Friday. However, don’t make it a habit because it’s much harder to save money.

You also have to be realistic about your goal. If you are saving up for a car, it may take a year or so. You also have to be realistic with the car note. How much will it cost to make a down payment? How much can you save on a monthly basis? Put your disposable income in a savings account or a special place where you won’t touch it until the time of purchase. Are you looking for a brand new model or can you deal with a model a bit older? These are all questions you should consider before going through a major purchase.

Learning how to save money and meet expectations certainly builds a level of discipline. You always want to make sure that you can handle the budgeting and it doesn’t affect your basic expenses. Take it slow and decide what the best plan of action is for your goal.

Next: China Sonangol

 

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Private Equity Firms are Thinking about Offering Products to the Average Joe

April 14, 2014 BusinessFinance & Investment  No comments

Are major private equity fund organizations really responding to ordinary people? The answer is undeniably yes. Certain equity firms which traditionally have only catered to clients with portfolios of a minimum of five million dollars are now considering a down-market trend of accepting clients with $50,000 to invest. Many persons with 401(k) plans represent the market where equity fund managers may better diversity their holdings.

When reviewing the number of 401(K) plans that are representative of the market; and wherein ordinary individuals may reap the benefits of such funds—the number is enormous.

Many well-known equity firms are still working out the kinks in developing products for the individual investor: however, once this is accomplished a great many private equity companies are stating they will be very pleased bringing on this type of new-style investor to their portfolio. The target market of new investors represents approximately a 3 trillion dollar market, and is right for a recovering economy. It is correct to say, bringing on the individual investor is a good approach in broadening investment objectives as it pertains to the private equity fund organization which has, once again, traditionally catered to clients with a minimum of one million dollars to invest; or held five million dollars in assets. Such an approach brings fresh cash into the fund company’s investment mix.

 

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Traditional-styled investors with a huge cash outlay have been reluctant to invest more money so the individual investor has been on the mind of the equity manager. Individual retirement plans have generally been a good investment for fund managers. There is a strong reason behind the equity manager’s interest: ordinary 401(K) plans will continue to grow at a rate of six percent and will surpass corporate pension funds by the year 2016. The projection is made by research firm Cerulli Associates based in Boston, Massachusetts.

One traditional equity firm has initiated a fund specifically geared toward the individual investor. A High Yield Alternative fund with a minimum investment of $2,500 has been offered with an option to withdraw money daily. Another fund with quarterly liquidity has been offered to the individual investor who has a minimum of $25,000 to invest. The funds described invest in bank loans and high-yield bonds and are the first individual funds offered by one company in particular. The structuring of these funds is similar to that of a mutual fund.

Read the next success investment story by Alain Fanaie

 

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