Overdraft facility

Well, I usually treat most callers courteously and give them a chance to say what they have to say (yes, telemarketers too). I just let them ramble off their script and then say I’m not interested. At least they did that part and sometimes I might learn new things.

Today, I received a phone call from a bank where I was having a fixed deposit (FD). The lady called to offer me the overdraft facility especially for me since I’m having a FD there. She explained the rates and also further added that it’s a minimum of RM10k which my FD is way less than that. Hence, she asked me to top up to the amount to “enjoy” this facility.

Firstly, yes I shouldn’t be putting in FD but it’s a small amount and I don’t know where else to invest in. The interest rate is only 2.1% now from 3.8% at one time. Yes, I tried unit trust (lose money) and no, I haven’t tried shares (not enough knowledge and $)

Secondly, IMO, if the person doesn’t even have the minimum amount, why ask them to top up and borrow more? Gosh! I mean it’s like telling you this:
“Hi, I’m going to lend you RM500k at this rate XXX. But you have to give me RM500k of your savings as a guarantee. Ok?”

Well, I didn’t let her explain the concept of overdraft to me but what I understand is like that. It doesn’t make sense to me. If I have the money, why should I borrow money from “myself” and let you charge me interest, processing fees, hidden charges? *Scratching head*

I googled it and noticed it’s suitable for business short of cash? Hmmm, but this specific bank’s offer to me is annoyingly senseless to me.

Anyone care to enlighten me the point of this facility for a single working lady like me?