financing.lk teamThe short answer
On a Rs. 125,000 watch, a "0%" plan with a 2.5% handling fee costs about Rs. 6,500 more than saving up for a year. It is worth it only if you need the watch now and never miss a payment.
Side by side
InstalmentsRs. 10,677 a month for 12 months
- Watch today
- Handling fee: Rs. 3,125
- Total: Rs. 128,125
Save upRs. 10,140 a month for 12 months
- Watch in a year
- Interest earned: about Rs. 3,300
- Net cost: about Rs. 121,700
The figures above assume a 2.5% handling fee and a savings account paying 5% a year. Try your own price and fee in the calculator.
When instalments make sense
- The plan is truly 0% and the fee is small
- You pay your card in full every month
- You need it for work, so waiting costs you money
Watch out
Miss one payment and many cards charge the full card interest rate on what is left, often above 25% a year. Some plans also add the fee to the first instalment.
There are 8 offers live on financing.lk right now, including instalment plans.
Try it with your numbers
Written by the financing.lk team. Not financial advice.