14/07/2020
All bank also got charge interest, just different is compounded interest or accrued interest. For now only HSBC and OCBC is accrued interest all others is compounded.
**Differences between Compounded interest and Accrued interest**
*Accrued*
For example, a RM500k loan with RM2500 installment/month, probably 1800 is interest (assuming newly completed property, new loan), outstanding 490k after a year. During 6 months period, total interest probably around 1800x6 = 10,480. If the interest is not compounded during these 6 months, banks will add in this amount to principal after the 6 months.
*Compounded*
While if the interest is compounded, after April, bank will add 1800 to 490k, they May need to pay interest based on 491,800, then June will need to pay interest based on 493,606 etc... Means every month they will add the interest to principal to compound it