Do you need urgent cash? Or you you need cash now that you can only pay back in 6 or 12 months later?
I am sure in our life we ever need a cash, sometimes it's urgent, but sometimes not so urgent but we can have it earlier and pay it 6 or 12 months later. One of the solution that is available at this moment is fund transfer or balance transfer facility from the bank. Current some banks offer a good promotion of fund transfer or balance transfer. Among other things are:
- DBS Fund Transfer with 0% interest
- HSBC Fund Transfer at 1.88% p.a. for 6 months*
- Citibank balance tranfer
Those are some of the available options in the market today.
Now, the question is how to choose the best and the most suitable for me? Below are simple guide can be used to consider when choosing the fund transfer facility:
Consider not only the interest and processing fee
Interest and processing fee are two cost component of fund transfer. Combination of the two will determine the overall interest that we need to pay. To make simple, calculate total cost for both interest and processing fee, and take which one give much lower. In this simple calculation, money value over the time is not factored it. For example, Fund Transfer 1: Interest to pay $100, processing fee $80. Option 2: Interest to pay: 20, processing fee 200. By comparing those 2 with simple method, option1 pay less 'overall' interest.
Take the amount of fund transfer within your capability
What it means here is to take the amount of the fund transfer within your capability to pay within the period determined. For example, if you can pay back 10,000 within 6 months, then it is advised to take 10,000 for the fund transfer. with this, you can pay fully the fund after 6 months where the interest is still within the promotion period. If you pay more the the period of promotion then normal interest which usually quite significant high would be applied.
