Term Deposits - highest rate for 1 or 3 year terms?

• 

  Ndiddy on 16/10/2013 - 10:40

  +2

  Unless your concerned about interest rates fluctuating to the detriment of your investment I would personally be looking at high interest online savings accounts that will allow you to access your money readily.

  However some good info of what is out there in the market can be found here:
  http://www.ratecity.com.au/term-deposits/search

• 

  Baghern on 16/10/2013 - 11:14

  +3

  Yep, right now most savings accounts are paying more than term deposits

  Look at Commonwealth Bank Goal Saver, as long as you add $200 a month, you're getting around 4% interest. you lose it though if you don't put an increase of +$200 a month… ie no withdrawals more than what you put in.

  I guess because of the restrictions it doesnt appear in most comparison sites

• 

  yk300 on 16/10/2013 - 12:55

  +1 to the above comments.

  You are much better off with a high interest online savings account. For less than 4% pa, it is not worth locking your money. You are much better off with other forms of investment.

• 

  Adz81 on 16/10/2013 - 13:02

  Agree with the above… I'm getting >4% on an incentive saver, paid monthly (if I don't withdraw any funds for the month, otherwise, it's more like .5%)

• 

  congo on 16/10/2013 - 16:10

  OK Thanks.
  So term deposit "as of today" are not so great compare to high online interest accounts.

  Some online account have rates such as:
  - Rabodirect 4.51% for 4 months (< 1M)
  - ING 4.5% for 4 months (< 250K)
  - Citibank 4.4% for 4 months (< 500K)
  - UBank 4.31% (< 200K)
  - BankWest 4.3% for 6 month

  Does any have experience with Rabodirect or UBank?
  Are they safe?

  • 

    mparf on 16/10/2013 - 16:48

    +1

    I use ubank, very good in all my dealings with them.
    They're backed by NAB if that helps you at all?

    • 

      congo on 16/10/2013 - 16:49

      Thanks!

  • 

    Baghern on 16/10/2013 - 16:51

    Commonwealth Bank GoalSaver

    Earn a 4.05% p.a.* variable bonus rate on balances up to and including $100,000
    To qualify, you need to increase your balance by at least $200 a month (excluding interest) and make no more than one withdrawal per month

    https://www.commbank.com.au/personal/accounts/savings-accoun…

    The big clincer is there is no expiry date and most of us already have a comm bank account.

    I might have a look at ubank though

    • 

      cpho on 16/10/2013 - 20:46

      If you're interesting in CBA, then Rams is a better alternative. Same conditions, but higher rate at 4.31% starting Friday.
      I'd also bet that many banks will be downgrading their interest rate soon too.
      Keep your eyes peeled over these couple days as the US shoots itself. Banks may start to do weird things

• 

  Baghern on 16/10/2013 - 17:00

  Although if you put your money in a managed fund that followed the ASX300…

  The year to 30 September 2013, your growth would of been around 27%-28%… or the last 2 years 21$-22% p.a

  ^^

  • 

    congo on 16/10/2013 - 18:35

    +1

    True. But if there is a crash you could loss 90%!

    • 

      Baghern on 16/10/2013 - 23:11

      thats if you geared on geared… then again if u geared on geared you could of been up 100%-200%

      • 

        [Deactivated] on 19/10/2013 - 22:13

        Until the United States/China problem is fixed.
        Or Australia's full-time employment starts to rise, we are in for potential cuts to dividends.

        CBA is currently paying out over 75% of it's earnings, but if earnings drop, this could cause it to force a cut to the dividend. High payout ratios are unsustainable. I look for companies with 40-60% payout ratio as it means that they will have more funds left for growth. Also, their dividends are more likely to be maintained. I think telstra will be one of the first dominoes to fall, then the big banks, followed by the supermarkets under pressure from costco and aldi.

        Either way it's quite risky. I've lost quite a lot this year in some volatile stocks such as Buccaneer and some health related small caps, 10c to 5c.

        We haven't seen a black swan event yet. We haven't really gone into a depression, so it's quite strange.

        My current allocation is 30% bonds, 40% cash, 10% stocks, 20% platinum.

      • 

        Baghern on 19/10/2013 - 23:00

        Your problem there is you're in cash and bonds… the last 2 years has seen over 40% total increase in the equity market.

        picking stocks is scary, more a lucky dip. You're competing against super nerds.

        Managed funds are easy, it minimises your risk. Index funds are the laziest.

        I've got some of money in a poorly performing equity fund and its given me 20% for the last 2 years.

        I think its time we start looking at global markets though I feel we're capping.