If you had a lump sum of money say $25,000 how would you invest it to get the best return? Would you approach a bank, credit union or some other organisation?
Does anyone have experience with either? Hope you can help.
Thanks heaps!
High Interest Savings Account Vs Term Deposit? Help Please
AussieDolphin on 18/06/2015 - 21:25
Comments
I don't think People's Choice is the best option then! Thanks
You can join ING with an everyday account and then a savings maximiser.
Gets you 3.5% interest.
Been with ING for years and love it.
Hate those high interest online accounts. You withdraw even once a lose that entire month's high interest leaving you with 0.01 %. I took all mine out and am putting them into stocks. At least I get 5% return minimum from them and can hope for capital gain in a few years. Just leave the minimum that you think you may need at short notice in online accounts. The rest should go into better returns investments. People are removing their term deposits and savings accounts to invest in A-Reits eversince the last interest rate cut and looks like Mr Stevens is about to do another one.
Its difficult to answer your question , without knowing detail around your longer term goals and your risk profile. Your title suggests youre looking at holding this in cash so maybe finding a high interest is the way to go. You might find websites that do the savings comparison for you
Other options are buying shares like yu said. If youre not sure what youll need to do research or if your lazy you could look at putting it into an index fund (eg s&p100/500 or asx etc) or a managed fund.
If youre looking for a longer term investment … You may consider using your $25k as a deposit for an investment property …
Do you need this money or is this lump sum spare cash? You might want to make a non-concessional contribution to Super if you can wait many years to get its return. Or if you have a spouse not over the $11,000 earnings threshold, you could put $3K into her super and get back $640 rebate on your taxes.
$25K is not really that much money. Certainly not to a financial institution. You will not get any special offers by asking - just dump it in the highest interest online account you can find.
You could also look at investing in stocks / funds if you wish - more risky, potentially more reward.