Why Paying Cash for an iPhone Might Be the Dumbest Smart Purchase You’ll Ever Make?!
Buying the new iPhone 17 Pro Max (Orange) at RM 5,999 feels like a statement — power, prestige, and performance in your palm. But before you swipe your card, there’s a smarter question to ask: should you pay cash or use a 0% installment plan (EPP)? On the surface, both cost the same. In reality, the way you pay can decide whether your money grows or just disappears.
Imagine you have RM 5,999 in your bank account. If you pay cash, the money leaves your account instantly. But if your company or bank offers a 3-year 0% EPP, you only pay RM 166.64 per month for 36 months. That means you can keep your RM 5,999 invested for the next three years — slowly withdrawing it to cover each installment — and earn returns from it in the meantime.
In Malaysia, platforms like Touch ’n Go GO+, Ryt Bank, and Versa allow you to earn daily interest while keeping your money fully liquid (you can withdraw anytime). For example, GO+ and Versa currently average around 3.4 – 3.8 % p.a., while Ryt Bank promotes daily-accruing interest of up to 4.0 % p.a. These platforms act like modern-day savings accounts that pay you a little every day — the perfect place to park your EPP cash buffer.
Let’s see what happens if you actually do that:
| Option | Payment Method | Platform Used | Average Balance | Estimated Annual Return | Total Return (3 Years) | Effective iPhone Cost |
|---|---|---|---|---|---|---|
| Cash Payment | RM 5,999 upfront | None | RM 0 | – | RM 0 | RM 5,999 |
| EPP (3 Years 0%) | RM 166.64 × 36 months | GO+ / Ryt Bank / Versa | RM 3,000 (avg) | 3.4 – 4.0 % | RM 306 – RM 360 | ≈ RM 5,639 – RM 5,693 |
So by using the EPP and parking your money in one of these daily-interest, high-liquidity platforms, you effectively save RM 300 – RM 360 compared to paying cash. It’s not life-changing, but it’s literally free money earned by being financially strategic — your money keeps growing every single day while you still get to enjoy your brand-new iPhone.
Of course, this only works if the EPP is truly 0 % interest and has no hidden fees or penalties (especially if you resign or change employers). And you must stay disciplined — the trick only works if you actually keep your money invested instead of spending it on other things.
In short: if your EPP has no fees and you’re smart about where you park your cash — in flexible, daily-interest platforms like GO+, Ryt Bank, or Versa — you get the best of both worlds: a shiny new iPhone and extra earnings every day. But if you prefer simplicity and don’t want to think about tracking investments, paying cash upfront is perfectly fine too. The key is simple — let your money work for you, even when you’re spending it.
Important: The information and opinions in this article are for general information purposes only. They should not be relied on as professional financial advice. Readers should seek independent financial advice that is customised to their specific financial objectives, situations & needs.
Published By:
Terrence Teh – Associate Consultant | Personal Finance & Cross-Border Planning (Malaysia–Australia)
I’m Terrence Teh, an Associate Consultant with FA Advisory, passionate about helping individuals and families achieve clarity, structure, and growth in their financial journey.
With a background in accounting, tax, and paraplanning for Australian advisory firms, I bring both local Malaysian insight and international financial planning expertise. I am currently pursuing the Registered Financial Planner (RFP) certification to deepen my knowledge in estate planning, retirement strategies, and wealth management.
I specialize in:
Cross-border planning for Malaysian families with ties to Australia (education, property, retirement, investments).
Insurance & risk management, including corporate employee benefits and group insurance.
Wealth accumulation & retirement planning, with strategies tailored to long-term growth and protection.
My goal is to make financial planning simple, structured, and aligned with your life goals, whether you are starting your career, expanding your family, or planning your legacy.
