So the trick is just to pay more, but if the interest is calculated on a daily basis, then doesnt it make more sense to pay more "daily " to decrease interest earned on the bond?
If you are paying extra money towards you bond and it's not an inconvenience to you, you can certainly pay daily. But if it's your standard repayment, you are simply paying the same amount divided by 30. It's easier to pay on pay day because you'll pay again 30d days later. Hope that makes sense.
Hi Sebolelo, Thanks for this content. I'm a new subscriber 😊. A quick one though...what do you say to people who make multiple repayments towards bond p.m with the understanding that, interest will always be calculated on the new lesser principal amount? By so doing, saving on interest. I would like to hear your take on that.
Hi Xolani, thanks for subscribing. 🙂 It's better to set it up as a once-off debit order. Remember you will be making payments every 30 days... So it doesn't make a difference when the 30-day cycle begins. eg) If you pay extra on the 6th - 30days later will be the 6th. If your debit order goes off on the 25th - 30days later will be the 25th. I always recommend a once-off debit order of the total amount.
Thank you ma’am for this. Sharing such important information with us for free. ♥️
Thank you. I'm so glad you appreciate it. Stay tuned for more.
So the trick is just to pay more, but if the interest is calculated on a daily basis, then doesnt it make more sense to pay more "daily " to decrease interest earned on the bond?
If you are paying extra money towards you bond and it's not an inconvenience to you, you can certainly pay daily. But if it's your standard repayment, you are simply paying the same amount divided by 30. It's easier to pay on pay day because you'll pay again 30d days later. Hope that makes sense.
Thank you 🙏
Totally my pleasure.
Hi Sebolelo,
Thanks for this content. I'm a new subscriber 😊.
A quick one though...what do you say to people who make multiple repayments towards bond p.m with the understanding that, interest will always be calculated on the new lesser principal amount? By so doing, saving on interest.
I would like to hear your take on that.
Hi Xolani, thanks for subscribing. 🙂 It's better to set it up as a once-off debit order. Remember you will be making payments every 30 days... So it doesn't make a difference when the 30-day cycle begins. eg) If you pay extra on the 6th - 30days later will be the 6th. If your debit order goes off on the 25th - 30days later will be the 25th. I always recommend a once-off debit order of the total amount.