HOME LOAN VS FIXED DEPOSIT · MALAYSIA

Pay down your home loan or put it in FD?

Compare the financial return and the liquidity you keep. Flexi loans can save similar gross interest while giving very different access to your cash.

✓ Loan progress✓ Financial return✓ Liquidity comparison
YOUR LOAN POSITIONHome loan

Original loan RM 500,000

Loan progress 8 of 35 years

Current balance —

Extra cash RM 100,000

KIRA RUMAH

Compare return and flexibility.

The loan type changes access to your money more than the gross interest-saving maths.

1 · YOUR ORIGINAL HOME LOAN

Same gross interest saving, low liquidity

RM
Optional. Include any fee you expect to pay during this comparison.
RM
years
% p.a.

2 · WHERE ARE YOU TODAY?

years
LOAN PROGRESS—
——
RM
Use your actual bank balance if your rate changed or you previously made extra payments.
CONTRACTUAL INSTALMENT USED—
Estimated using entered rate—

3 · EXTRA CASH VS FD

RM
% p.a.

WHY THE INTEREST SAVING CAN BE THE SAME

RM100,000 offset is still RM100,000 offset.

If the same amount reduces the interest-bearing balance for the same time, gross interest saving is similar. The key difference is liquidity, redraw rules and fees.

TERM / NON-FLEXI

Low liquidity

Extra cash becomes principal repayment. Strong debt reduction, but getting the money back generally requires refinancing or another facility.

SEMI-FLEXI

Medium liquidity

Extra payment reduces interest and may be redrawable, but bank requests, redraw fees or conditions may apply.

FULL-FLEXI

Higher liquidity

Cash parked in the linked account can offset loan interest while potentially remaining accessible, subject to the bank's terms and account fees.