##RBBT loan

Posted on by tiger40490 rendered_on [ Thu, 6 Mar 2025 ] 19:09 UTC

See also simplify: cashflow juggle

SMP=StatementMinimumPayment

— todo: Final payment is special and high-stake. Better set up reminders a month before 6M anniversary

  • MB: 5 Aug 2024, better pay off before flying out on 2 Aug
  • HSBC: 2/2 ~ 2 Aug 2024

— 2 May misstep.. I made an honest, ignorant mistake when I removed citi mobile app (along with the “token”).. 12H lockout. In the cool light of day, impact was very small. (less than $8 interest charged). This kind of mistakes are hard to avoid and will happen many times. We can’t pre-empt these mistakes.. we can only learn afterwards.. a training fee.

FBFs are also minor missteps, though less forgivable

— RBBT [reduc`bal balance-xfer] .. experiment of juggle ^ arb
The juggle … is the monthly payment commitment

The juggle is a lot  worse than EGA or TimeDeposits. Therefore, it took me a lot of courage to take on this juggle.

  • risk: late payment or insufficient payment,
  • .. Before going overseas, better pay in advance
  • .. if very sick, I need to immediately pay off 100%
  • .. if I pass away suddenly, then wife need to pay off these two loans immediately. Banks will send letters to request immediate payment.
  • secondary risk: sys2 overload .. stress, distraction

— 0%LIR loans.. The additional profit margin is small, but the risk is real. Poor flexibility. No parachute (escape-pod). Unlike RBBT, I can’t FPP entire loan whenever I find it uncomfortable. FPP would need due diligence [calculation]

Example: Maybank deal 1.28% upfront cost. 6M FPP would (roughly) double my EIR to 2.6 ppa. If you FPP after 3M, then EIR would be 5.1 ppa.

==== HSBC Ploc RBBT. aaron.h.m.chung@hsbc.com.sg 66580908.

TnC: https://www.hsbc.com.sg/content/dam/hsbc/sg/documents/personal-line-of-credit-personal-term-terms-conditions.pdf

  • The date displayed for each debit or credit is the posting date, not always equal to transaction date. When you make a payment from EGA, posting date could be T+1 or T+2.
  • int posted 24~26th. Better pay SMP after that. Single monthly payment.
  • $75 late fee

int calc eg:

  • 24 Jul $86.99: [10Jul-23 Jul] 14D/365D * 1.68 ppa * 135k ≅ 86.99
  • 24 Jan 8D/365D * 1.68 ppa * ADB 116k ≅ 42.95
  • 24 Feb [2/2 – 23/2] 22D/365D * 1.88 ppa *135k ≅ 153.00
  • 25 Mar [24/2 – 24/3] 30D * 1.88 * 131.1k = $202.58
  • 24 Apr [25/3 – 23/4] 30D * 1.88 * 127.4k ≅ $197
  • 24 May [24/4 – 23/5] 30D * 1.88 * 123.7k ≅ 191
  • 24 June [ 24/5 – 23/6] 31D * 1.88 * 120.1k = 191.77
  • 24 July [ 24/6 – 23/7] 30D * 1.88 * 116.6k = 180.2
  • 24 Aug [ 24/7 – 31/7 ] 8D * 1.88 * 113k = 46.5

==== Maybank tele-sales (Freddy Wong 62980671). Technically, this is known as a “fund transfer” loan from credit card account.

  • payment towards RBBT is always posted on a business day, even if you make immediate payment (from a MB acct) on a non-business day. Therefore, to maximize deposit interest, it’s financially advantageous to make final payment on a business day.
  • LIR-arb: 1.5 ppa over 6M * 100k quantum = $750 interest gain.

— calc engine:

  • Core principle: EOD runningBalance * 2.5 ppa/365 = daily accruedInt
  • daily accruedInt is added up to a “finance charge” and added to runningBalance (“posted”) right after statement date. Monthly compounding.
  • payments (from YoungStarz) always hits the runningBalance immediately, even on weekends. Verified online:)

Eg of 24 Feb statement: runningBalance is 56k for 5 days. Daily accruedInt is $3.836/day. $3.836 x 5 = $19.18 is added to runningBalance right after EOD 24 Feb, so statement balance is 56019.18. This is the new runningBalance until a payment hits.

24 Oct:  2.5 ppa * 30D/365D * ADB $68.3k ≅ 140.07
24 Nov: 2.5 ppa * 31D/365D * ADB $67k ≅ 142.22
24 Dec: 2.5 ppa * 30D/365D * ADB $65.8k  ≅ 135.18
24 Jan: 2.5 ppa * 31D/365D * ADB $64.6k  ≅ 136.98
24 Aug: 2.5 ppa * 7D * 65k = $31

— monthly paying .. If you fail to make the SMP (2% of runningBalance as of 24th) by the due date, regardless of the shortfall, lateFee of $100 applies. LateFee is the only penalty.

As soon as you notice the statement and iFF you can avoid EGA, you should pay the SMP. Otherwise do it on payroll date. Do not pay before statement date.

Final due date follows loan approval date! You must pay off the loan by that date. Do not rely on statement. Instead, pay off 100%  a few days before the 6M anniversary.