Hi OZBARGAIN Members
I have a certain amount of money (nearly a million dollar after the sale of my investment property) in my saving account with very lower interest rate. Before moving on to the next investment, I have that money for a short period of time (around 6 months to one year). Can you please advise on ways to give a good return on investment in the short term? AMP and CITI bank gives 1.35% PA and some other banks give 1.6% but with some conditions.
(Please note. I have been consulted once before here regarding the sale of my investment home. But I sold it last December when the price was at its peak)
Short Term Investment Option...
TAN on 14/06/2022 - 10:27
Comments
more on this:
1 - 250K limit is per bank per person, not per account
2 - Some banks have very strict daily withdrawal limit, like $20,000/person/day so bear that in mind if you use multiple banks and anticipate speedy withdrawal of fund.more on this, this guarantee is likely B.S. as banks will bail in your money in order to not go insolvent, thus not triggering the garuntee.
'Bail in'= euphemism for 'steal'.
Some T&Cs might mention this "Guaranteed guarantees, subject to X event". Well it's not really a guarantee then, is it?
For heaven sake, with this amount cut the middle man and go straight into government-issued paper.
Where do you think those banks parks their cash reserves?
The FCS is a scam where the gov takes taxpayers' money to pay for private banks and leaves the taxpayers and the poor with a massive debt bill.
AMP and CITI bank gives 1.35% PA and some other banks give 1.6% but with some conditions.
Are these just interest rates on savings accounts?
You're better off doing something like a term deposit. AMP do 1.9% and 2.9% rates for 6mth and 12mth rates respectively: https://www.amp.com.au/banking/term-deposit
Just wondering, when a savings account has interest calculated daily and paid monthly, vs a term deposit where is paid at the end of the term, does that narrow the gap between the interest rates due to compounding of the former? Or is that factored into the rate for comparison purposes?
How safe is Fundings?
They've been around for a while now, and we've invested with them for a year or so now, but 6% is high enough risk that I'd say probably best not to go all-in (as you would with the 1% from banks).
No open investments. Sigh.
As ever, consider your risk profile.
If these guys can offer you a return of ~6% (or better) when a bank is charging borrowers maybe 3.5% (so in other words they must be charging their borrowers 8%+), what is different about the business model?
Who are they lending the money out to at 8%+? Who is happy to pay 8%+?
But 50% on black and the other 50% on red.
What could go wrong?Zero
Could land on green 0 or 00.
Bitcoin while it's low. Buy a few Fiat trucks.
(insert emoji here)
Rektrading probably
.#Bitcoin isn't a short-term investment.
It's at least a 5Y timeframe.
If you want to make the most money out of crypto - you definitely want to short-term trade the swings. Can make a looot of money.
Holding long-term is risky AF.
Judging by the last month or so, I'd say holding short term is also risky AF
@MiguelSanchez91: I mean you could say that about virtually any asset at the moment though - I've only lost money on my ETFs this past month and they're meant to be stable/conservative and low-risk.
Bear market means anyone with assets suffers (unless you just hold cash).
Good job getting out of property market in time.
If you managed to time the property bubble, I wonder why are you asking for a financial advice here?If you want to preserver the capital, then long-dated government bonds would probably be the easiest option.
Short-dated will swing based on the cash-rate which will ultimately get much higher.Short term investment by definition means you are intending to 'cash in' (sell) the investment within the short term. In other words, you cannot hold onto the investment long term and will have to sell regardless of market conditions at the time. For example, the general recommendation for shares is a 5 to 7 year time frame because if the market drops you dont have to sell, you can wait for a few years and history says you will end up ahead (yes, day trading excepted; and 'history says' may or may not apply to this point in history).
Thus your options are either (a) you want to preserve capital and that is your no 1 aim or (b) you want to chase higher returns (and that is your no 1 aim) and dont mind potentially losing capital (keeping in mind the first point - that you do not have the ability to vary when you sell the investment by any great amount, hence cannot simply decide to keep the investment for 3 more years until it comes out ahead).
What is the outcome you wish to achieve?
ING up to 2.15% from tomorrow on their savings account (usual hoops and hurdles apply).
Others will likely be doing similar deals. Sniff around Macquarie, UBank, Suncorp, AMP, amongst others.
I'd be going down this road rather than TDs (or any other investment) in your circumstance.
only 100k and they make you do the dance to get it
Agreed, ING not what it used to be. There may be better offers out there (such as those noted), but that's about the rate I'd be looking for.
Also would suggest spreading it around a bit as others have noted above.
If keeping in bank, i would split the amount four ways into different bank to leverage the government 250k guarantees.
As to which investment, cant advise based on the liquidity you need.