Term Deposit Cash Management

Ltimchen214 on 24/05/2022 - 11:46

Hi guys, in current situation, what is the best plan to deposit my cash to gain the maxmium revenue?

Commonwealth has a 18m 2.25% term deposit available,but 18 month feels like a trap to me, as the interest rate is highly likely to raise in the next few month,
I assume the interest rate annually will raise higher than that later this year.

Also there are sml banks like AMP offers better rate but I have no experience with sml banks so it looks risky to me

Does anybody have a plan of Cash management at current situation and can share with us?
Or is there any good offer there I didn't found?

Financial

Comments

Jason Genova on 24/05/2022 - 11:54

+2

why would you lock away your money for X amount of time, rates are gonna go to the moon in the next 18 months
- Ocker on 24/05/2022 - 12:32
  
  +2
  
  Yep there gonna go higher, but not higher than 2.25% pa average over the next 18 months
  - avoidfullprice on 24/05/2022 - 13:52
    
    The average part is key in this comment
garetz on 24/05/2022 - 12:00

+4

Worst possible time to do a term deposit.
Seraphin7 on 24/05/2022 - 12:55

Locking up your money for 18 months … and cash management … are terms that don't really go together.

I would be plonking any excess cash in either online savings accounts or maybe 3 month TDs if you can can a better rate there.

But the probability is rising interest rates for the foreseeable future, so would not be doing long-dated TDs in this environment.
FujiFruit on 24/05/2022 - 13:13

Eg amp is 1.35%, Would it go up to like 4% in a few months?
toniyellow on 24/05/2022 - 14:40

Small banks are no more risky than big banks due to - https://www.apra.gov.au/financial-claims-scheme-0#

If you are under 35, the BoQ HISA is 3% and you are not locked into a term.
https://www.boq.com.au/personal/banking/savings-and-term-dep…
rektrading on 24/05/2022 - 17:02

2.25% - 5.10%

Term Deposit Cash Management

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