An
all-in-one account allows you to have a
savings or current account (or even a fixed
deposit account in some circumstance), where
no interest is paid to such account but
instead the credit balance thereof will set
off your loan principal before the interest
on the loan is calculated. Therefore less
interest is charged to your loan. This
account will enable you to cut the interest
costs substantially or even totally if you
have a substantial credit balance in your
saving or current account.
The
advantage of an all-in-one account is you
can redraw from your saving or current
account as and when you like without
penalty. The all-in-one account attracts a
higher interest rate and charges a small
monthly fee for the maintenance of the
all-in-one account.
:: Pros
The interest rate “earned” on your savings
or current account is the same as that
applied to your loan account. This is higher than you could earn on the savings account or even the fixed deposit account.
