Quarter Million Deal by Affin Bank
[For in-depth review on deposit contest, refer to 'cash, Gold & Diamond' earlier post]
The smallest anchor bank and the lowest profile bank in Malaysia, Affin Bank is a much stronger bank now then it was 2 -3 years ago. By any measurements, through its aggressive radio and print advertisements, the Quarter Million deposit contest has raised the profile of the bank. The contest itself however, is the least ‘attractive’ in view of its high ‘entry’ cost and number of prizes.
- Quick Facts First
Contest period: 1 Apr to 30 Sept 07
Total number of prizes: 31
Total prize money: RM125,000
Prize : 1 x RM100,000 grand prize; 5 x RM5,000 monthly prize
How and What
The contest is opens to current and saving individual accounts (Islamic and conventional). Initial deposit requirement is RM2,000. Subsequently, participants have to maintain an incremental monthly average balance of RM2,000 (IMAB - a deposit ‘top-up’ scheme). The IMAB is anchored prior to the commencement of the contest i.e. March. For new account, the MAB base is zero. MAB is defined as the aggregate credit balances for the month divided by the number of days in that particular month. Every RM2,000 IMAB will be given one entry form. All together there are 5 monthly prizes of RM5,000 each (for 6 months in total) and 1 grand prize of RM100,000.
The Caveat
The prize money is 2X of incremental MAB & is subjects to maximum of RM5,000 for the monthly and RM100,000 of the grand prize. Example of monthly prize : If your MAB is RM2,000, you get 2 x RM2,000 and get RM4,000, not RM5,000; If you have RM11,000 MAB, you only get RM5,000 instead of 2 x RM10,000 (round up to nearest lowest number by RM2,000). Grand prize money follows the same calculation.
Bottom Line
Deal or no deal - RM12,000, that is the amount one needed to ‘save’ for the contest. By parting away RM2,000 every month, the possible returns at the end of 6 month is between 40 -800% - if you lucky to win any prizes at all. Giving there are only 31 prizes to be won, luck is the only thing you can counts on. But how about encouraging saving habit? Again given the RM2,000 IMAB requirement, the contest would probably more successful in generating short-term, ‘speculative’ fund transfer activities to Affin Bank than encouraging genuine saving behavior. Or one can argue that this is not the intention of the contest at the very first place.
Next : Cash Surpri$e- EON Bank