OPR? What's that?
This year sure is starting out with a bang. This very first quarter we've had lots of NEW things happening in Malaysia and the world. From bugs that afflict us health wise, to bugs that afflict our government, so many things are happening. In hope of encouraging our economy, The Overnight Policy Rate (OPR) has been set 25 basis points down (0.25% for us normal readers).
What does this all mean? In simple terms, lower interest rates for borrowing (flexi rate loans) and lower rates of return for Fixed Deposits (FD).
How does this affect our daily lives? Well, first of all, the good news, your home loan rate will be reduced! (see below, thanks iproperty.com for the info)
THAT'S GREAT NEWS! But on the other hand, the returns of fixed deposits will reduce too:
And we Malaysian's LOVE our savings, especially predictable return ones.
Well the good news is, there are always alternatives that can get you a better return, and maybe it's time now to explore possibilities.
You don't have to max out the risk for potential returns. You may consider contracted returns ideas (example 10% over a period of 24 months) or cash flow accounts that allow easy withdrawals, with an estimate return of 3.45% per year. Or if you are willing to look into a portfolio of funds, taking a balanced approach may get you more potential returns long term by investing now.
Just because things don't go according to plan all the time, doesn't mean you have to get thrown off track. It could just be a time to reconsider option, and make yourself happy by sorting out your financial plan to adjust for changes:
Let us help you with that, do get in touch with our licensed financial advisers and we'll work out a plan with you today!
Get in touch with us through our Facebook, or drop us a line at our website and we'll talk it through with you.