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8 Exploitable Loopholes to Use on Banks in Malaysia

Updated 19 Nov 2019 – By Loanstreet


Most people would describe banks as bloodsuckers, sharks, predators, daylight robbers, etc. But did you know that there are certain loopholes in the system which you can use to turn the tables on banks? Once you learn these, you’ll NOT only prevent them from milking your money but even take money from banks in ways that you probably shouldn’t!

Here are 8 loopholes you can exploit:


1. Reload your e-wallets using a credit card to EARN cashback

FYI, some banks considered e-wallet reloads as online transactions, while some put it in the "others" category. So, if you have credit cards that offer cashback benefit, why not take this advantage to reload your e-wallets to earn those extra monies? Some of the credit cards that offer cashback when you reload your e-wallets are Standard Chartered, OCBC and Public Bank. The rates may differ depending on the amount spent and treatment from one bank to another. 

Having said that, not all banks give cashback rewards for e-wallets like Maybank. So be sure to keep your eyes on the rewards that your credit card offers.


2. Use your credit card as a charge card


Thanks to monthly billing cycles of credit cards and payment grace periods, depending on the day of the month you make a transaction, you can enjoy 15 to 50 interest-free days just by using your charge cards/credit cards. It’s like buying something, but only paying 50 days later! 

So instead of using cash for all your transactions, use your charge/credit card if possible. Just remember to pay it off in full whenever the statement is due!

READ: Between Credit Cards, Debit Cards and Charge Cards

 

3. Use reward/cashback credit cards

As if 15 to 50 interest-free days aren’t good enough, using a cashback credit card essentially gives you a discount on ALL the transactions you make via credit cards. For those who prefer reward cards, you could say reward points count for a cash equivalent.

Bonus Tip – Pay your monthly bills as late as possible using credit cards

Most phone and utility bills have a 30-day grace period. Paying them with your credit card on the last possible day stretches the total number of payment-free days for you to 45 to 75 days. 
 

4. Cancel and reapply credit cards just before one year

Most banks today offer to waive off the annual RM25 Service Tax if you apply for a new credit card with them. Exploit this by cancelling off your existing cards just before the one year to ensure you never have to pay any more taxes on your credit cards.
 

5. Put money into chequing account at the last minute

Current accounts are typically non-interest bearing accounts used for issuing cheques. Transfer money into the chequing account only when you are expecting a cheque to be drawn on your account. Just remember to make sure there are sufficient funds when the cheque is cashed to avoid the RM50 to RM100 penalty!

 

6. Pay home loan instalment as EARLY as possible in the month

If you have a housing loan, pay the instalments as early as possible in the month before the due date to save on interest payable. This is because mortgages in Malaysia follow the daily rest on reducing balance interest calculation.


7. Pay your car loan & personal loan instalment as LATE as possible in the month

On the contrary, do the opposite when paying your car loan and personal loan instalments. Pay it only on the due date for the month. This is because car loans and personal loans repayments follow the simple flat-interest calculation method.
 

8. Use comparison sites like Loanstreet to find the best product fit

Whether you're on the look-out for a home loan, home refinance, a personal loan, or a credit card, you no longer need to walk into banks to listen to one-sided sales pitches. In Loanstreet, we offer you quick and user-friendly tools such as the home loan comparison tool, home loan refinancing comparison tool and personal loan comparison tool. Exploit these tools to find the best products for your needs!

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