and the OD adventure begins...

finally, after waiting for more than one month and countless follow-ups with CIMB bank, my OD (OverDraft) money is available in the account, ready to be utilised!!!



i kicked-off my od-asb journey last month. after hearing so many amazing stories of people getting their personal finance in order and being rich using this technique, i finally decided to give it a go. so far i have five friends who had actually started, some of which already seen the effect within four months of doing it. cerita kawan atas kawan atas kawan tu tak kira laaa. setakat cakap kosong sumer orang boleh buat. hahaha.

over-draft is a facility given by a bank for us to 'over-withdraw' money from our account. this facility is useful due to the fact that the interest charged is low and it is on daily rest (at blr-1.65%, it is super low compared to credit card's at 18% annually!). to get this facility, a collateral is needed, the most common is asb certificate, hence the term od-asb!

the first task was to get the od money available in my account. i chose cimb bank because the branch is close by, plus i already have an account with them. but the pros will advice to use rhb bank, the main reason being higher margin (95% of collateral value compared to 90% offered by cimb). i went through the following steps to get the od facility at cimb.

0. save some money in asb account. this can be from monthly savings or else, apply personal loan and put the money in asb.
1. convert asb money into certificate at any pnb office. rm10 fee has to be paid per certificate. the certificate must be in multiple of thousands. so tak boleh laa nak convert rm10200. for cimb, minimum value for an application is rm10k. less than that, bank tak layannnnn... this step took less than 10 min (waiting time in queue excluded).
2. surrender the certificate to cimb. fill in od application form, current account set up form (because the od uses current instead of saving account), and a few other forms. pay rm160 for the processing fee.
3. wait to sign letter of offer from the bank. then sign the letter of offer. the letter took two weeks.
4. wait for money to be available in the current account. cimb will also give a cheque book too for our usage. normally two to three weeks is required. but in my case it was five weeks!!! sabar je laa.

once the money is available, od-asb cycle begins. macamana nak buat? apa faedahnya? entah laa labu. tak berani nak citer selagi tak try sendiri. but as i go along, will try to update as much as possible. insyaallah!

od-asb fun facts.

1. the interest is charged daily. example:
withdraw 10k for 1 day at blr-1.65% = 5.5-1.65 = 3.95%
the interest will be = 3.95% x 10k x 1/365days = rm1.08 per day.
for a year, the interest will be rm395 jer... murah tu!

2. lazy technique: withdraw rm10k, put in asb at the start of the year. assume dividend 8%, we will get rm800. minus the rm395 for the od interest, we'll get rm415 for free!

3. use the od money to pay off personal loan, credit card, car loan, etc. savings in terms of difference in interest charged.

4. roll the od money to do business, as capital to purchase something and sell it at higher price. so we don't need to use our asb saving as capital. dividend asb still jalan, modal business pun ada!


5. the advance technique involves additional usage of credit cards. the idea is to maximise spending on the "free" money offered by cards, at the same time reducing the interest charged by the od. complex wooo! tapi dah ramai yang berjaya. micro-managing your money. a lot of steps involved. but that's story for another day....


sapa2 yang banyak hutang and tak nak pikir banyak, pecah kepala, terikut ajaran sesat, can go to otai od at azizcfpx.com. attend his seminar and he will give detail, personalised guideline. all we need to do is to follow the instructions given. i want to try on my own first. it this does not work out, i will definitely give him a try.


my initial target now is to use this facility to save 45% of my take home pay every month, and i'm giving myself a six month window to do this. harap2 berjaya laa hendaknya. will definitely update the process later once i get better at it.


go od-asb!


*for more reading material, just google "od asb credit card". tons of articles on this matter.

7 comments:

suria said...

hi juri..kod pun sibuk nak buat but if we take islamic overdraft the returns still good ke tak dpt byk?

JuRi said...

hi su!
not many banks are offering. maybank has one, but i think the rate is higher and still BLR-based. plus the cannot use ASB as collateral. kena guna rumah/tanah/unit trust. oh, the margin given also a bit lower.

nanti try research lagi, kalau ada, definitely will write about it!

JuRi said...

hi su!
not many banks are offering. maybank has one, but i think the rate is higher and still BLR-based. plus the cannot use ASB as collateral. kena guna rumah/tanah/unit trust. oh, the margin given also a bit lower.

nanti try research lagi, kalau ada, definitely will write about it!

BeautifulMindLife said...

sepatah haram aku tak paham. baik ko terangkan kat aku secara mendalam nanti.

JuRi said...

ok ok, no hal.

bila dah expert dan ada result sebagai bukti, baru laa best bercakap! hahahaha.

BeautifulMindLife said...

Orait....dah untung, cerita sama aku...kalau rugi, consider that this conversation never happen hahahaha....

JuRi said...

itulah pasal. harap2 menajdi laa projek ni. kalau gagal, kena gi serah diri kat en aziz. biar pro jer yang guide, lagi sonangggg!