If you or your child is attending school, you have a few ways to pay for it. University education can be incredibly expensive today. While the most desirable option is a scholarship that covers all, or most, of your university expenses, scholarships are not available to everyone. Alternately, scholarships might not cover all of your expenses. This means that you will need to make other arrangements to pay for education. Another options is paying for tuition out of your pocket or getting a loan. If you don’t have the money needed, you’ll need to get a loan. Even if you do have the money necessary, you might want to get a loan so that you don’t have to empty your bank account.
A fixed deposit bank account is a type of account in which there is a predetermined amount of money that you have to deposit in the account. You then pledge to keep the money in the account for a certain amount of time. The deposit will then accrue interest. Banks like fixed deposits because it makes it easier for them to know how much money they will have to work with. If they know exactly how much money you will deposit and how long it will be there, they’ll be able to better make investments in their own business. Therefore, they will pay higher interest rates on fixed deposits, which is why customers often like fixed deposit account. They have long been part of retail banking in Malaysia.
Fixed deposit bank accounts have just recently entered the education loan realm. Many banks are coupling education loans with fixed deposits. They will promise to double the amount of your pledged fixed deposit in the form of your education loan. For example, if you pledge RM10,000 in a fixed deposit, you can then get a RM20,000 education loan. The fixed deposit will also accumulate interest along the way.
There are many different ways to choose a repayment plan. If you have a job lined up right after university, then it might make sense to immediately begin paying your student loan. If you’re not sure or if you take a while to find a job after graduating, you might want to delay payments. Many banks will allow you to pay only the interest on the loan for the first few years after university. That will give you some space to begin earning a living before you start paying on your loans in full. There are also ways to renegotiate how long your payment plan is. If you need more time, you can stretch it out for lower payments. If you get a job that’s better than you anticipated, you can shorten it.