Credit card interest rate to reduce by 31 March 2009

The Association of Banks in Malaysia (ABM) has just announced today that the interest rates for credit cards will be reduced by between 0.5% and 1.5% for Tier-1, Tier-11 and Tier-111 credit cardholders while late payment fees will be slashed to a minimum of RM5 and a maximum of RM75 effective 31 March 2009.

Interest rates for Tier-I credit cardholders who promptly settle their monthly minimum payments for retail purchases for 12 consecutive months will be reduced to 13.5% per annum from the current 15%.

For Tier-II cardholders who promptly settle their minimum payments for 10 months or more in a 12-month cycle will also benefit as the relevant interest rate will be reduced to 16% per annum from the current 17%.

Cardholders who don't fall within the 2 categories and who are generally termed Tier-III cardholders will see the interest rate for them come down to 17.5% per annum versus the current 18%.

The present late payment fee of a minimum of RM10 or 1% of the total outstanding balance, subject to a maximum of RM100 will be revised to a minimum amount of RM5 and a maximum of RM75.

This will not have any effect to good paymasters who settle their credit card bill in full payment every month, which is a very good financial discipline allowing them to enjoy 0% interest for at least 20 days, as they will still remain free from any interest charge. For Tier-I cardholders who never default their payment, they will enjoy one of the lowest credit card interest rate in Asia at the rate of 13.5%.

I would advise that although the interest rate will be reduced soon, you should never get yourself into Tier-II or Tier-III, as the compounded interest rate is still very high.

Electricity tariffs to reduce slightly from March 2009

Malaysia government has just announced a cut in electricity tariffs effective 1 March 2009.

Under the plan, tariffs will be cut to 31.31 sen per KWh from the current 32.5 sen. Domestic users will enjoy an average 2.54% cut in electricity tariffs, while commercial users will pay 2.7% less in electricity bills. Other major reductions include a 5.0% discount awarded to industrial users' bills.

Major beneficiaries will be industrial users that use a lot of electricity, such as the steel and aluminium millers. Savings to the domestic and commercial users seems to be minimal, although better than nothing.

Convertible car seat for infant and young toddler

Car seat is necessary for you to carry your child in your car, and the child is not yet tall enough to use the seat belt of the car. It will provide protection to the child in case of collision.

I bought a convertible car seat for my son and has been using it since he was more than 1 month old until now (2 years+). I think it can still be used until he reaches 3 years old. The convertible car seat can be rear-facing as well as front-facing.




Here are some common senses about car seat that I would like to share with you:

• If your car has air-bag for front passenger, the car seat should be installed at the back seat and never be installed next to the driver. This is because the air bag might hurt or suffocate the child. It is even more dangerous if the car seat is in rear-facing position, imagine what will happen when the air bag blown out.
• The child should be rear-facing at least until he/she is 1 year old and also his/her weight has already exceeded 20 pounds (9.1 kg). This is because the neck bone of infant is still very soft and easy to break. With the child lying down securely, the rear-facing car seat will provide support and protection to the head and neck of the child in case of collision.
• Switch to front-facing when the legs are too long for rear-facing position.
• Consider a convertible car seat which can be rear-facing as well as front-facing, so that it can be used for a longer period (until 3-4 years old).
• You should change the car seat to booster seat for older toddler, until he/she can use the car seat belt without the booster seat, which is when the shoulder belt can rest against his/her chest and not the neck or higher position.