AMP has upped their term deposit rates over a range of timeframes. At the time of posting these are the highest advertised rates on offer for interest paid annually.
Highlights are for deposits over $25,000 up to $5 Million.
| Term | Interest rate |
|---|---|
| 1 year | 3.50% pa |
| 2 years | 3.90% pa |
| 3 years | 4.15% pa |
| 4 years | 4.30% pa |
| 5 years | 4.40% pa |
If you want to park some of your spare money, this is an interest-ing option, pun intended.
Their rates are just 0.05% less for amounts less than $25K. My description text was just selective for brevity.
I think 5% is coming soon before end of the year.
I can smell another GFC is coming just like the 2008 one.
Will the AMP still exist 5 years later?
The current issues are not related to financial instability. It's inflationary because people have been given too much free money and capital prices are above what they are worth. So the government is encouraging you to not spend by increasing the interest rates so you save and leave the stock market which is overpriced. If it doesn't work then the stock market will likely crash and you are looking at next great depression. Inflation is more dangerous to an economy than a recession. Inflation can result in a deep depression which is hard to correct. But we have steered through many recessions over the last 50 years.
I don't think inflation will slow down in any time soon and recession is a sure.
Even if the Ukraine war ends, the land there is not suitable for growing food anymore.
Chemicals from weapons have contaminate the land.
Climate change is a consistence factor now, floods and heat waves every year everywhere.
Global food supply will keep going downwards.
Plus, China is going to invade Taiwan in 2023 if not end of 2022.
I am not going further on this but that's my view.
This will be another blow of the global economy
People have been borrowing money for too cheap and for too long.
Many who bought a home in the past 10 years, just don't deserve to be an owner
I mean in terms of their financial affordability, and both in the US and here in Australia.
Now the % goes up, these people will have to take the cost, possibly many can't repay their mortgage.
The same applies on business, too many zombie business nowadays. Time to kick some out.
But the chain reaction caused by these low credit quality home owners and business will be massive.
It's like someone who addicted to drugs for 10 years and it's painful when he stops.
I think a great depression is not avoidable but I hope I am wrong.
Plus, China is going to invade Taiwan in 2023 if not end of 2022.
Maybe not that soon but it definitely will happen. Most institutes report that they should be better prepared to do in the next 10 years or so. Just doesn't seem plausible at all to do it now as an amphibious assault is so much harder than the current conflict in Ukraine. Economy will freefall if it does happen.
people have been given too much free money
so you save and leave the stock market which is overpriced
retail investors are not the ones - or have the capital - that pumped the prices to what they are today. there's no brakes on this train.
If you remember back to GFC, we had high (normal?) interest rates going into it. This time we have ultra low interest rates.
Governments actually want "healthy" inflation as it can over time "inflate" their debt out. A lot of the blame also lays with governments worldwide post GFC who had loose and/or lack of fiscal policy, leaving central bank monetary policy as the only tool for the economy.
Latrobe has better rates
Apples with oranges. Latrobe doesn't offer a (cash) term deposit, it is a mortgage provider.
Is it safe like the banks?
It's not guaranteed by government, so no.
So what's the best plan of attack with term deposits? Invest now, or wait a couple of months as rates are almost certain to increase based on recent statements from RBA.
hedge your bets and open with 25% and repeat for the next 12 months
also if you need quick cash some will always roll out within 3 months
ING is currently 2.6%, the RBA is highly likely to bump another .50% on Tuesday. We could have high interest saving accounts at 3.1% by start of September and likely 3.6% by October.
0.75% most likely.
It is possible, however the most likely outcome is .50% at the moment.
0.75 would be the right call but the RBA has no idea what it's doing and will cater for the masses and go 0.5. The point of the rate increases is to shock the market. By doing it gradually it's not as impactful and you acclimatise the market to continue doing what it's doing and accept the increase as part of the package. For that reason inflation is likely to stick around for quite a while longer.
So even looked in for a whole 5 years and you still don't catch up to the 6% inflation.
That sucks
That's assuming inflation will be 6%p.a. for the next 5 years which is highly unlikely.
Inflation goes up quickly and comes down very slowly because prices are sticky. I'd say it will be an issue for at least the next 3-5 years.
Prices don't have to go down for inflation to go down. They just have to stop going up. If they did (stayed unchanged at their high rates for a year), then after a year the inflation rate would be 0%
@abc: If the total cost of the basket of goods and services goes down, yes that's deflation. However, prices of some of the items in the basket regularly go down but are generally more than offset by others that go up - so that's still overall inflation.
@bean_counter: Some inputs have to come down. For example, Oil and fertiliser prices cannot stay where they are. They must come down to stop inflation from continuing to rise.
@[Deactivated]: As I said, prices don't have to come down to stop inflation from "continuing to rise". They just have to stop going up. However, the reduction in prices of some items in the basket of goods and services will help offset increases in others.
Are you saying it'll be more then?
ksama0079 2 hours 21 min agonew
+1
It's not guaranteed by government, so no.
Not true,the government guarantees amounts up to $250,000.
Yes, AMP Bank is on the list of authorised deposit-taking institutions covered under the Financial Claims Scheme
For context, you're quoting a comment that was replying to "Latrobe has better rates"
La Trobe financial has a nice big warning on their site that:
"Please note: An investment in the La Trobe Australian Credit Fund is not a bank deposit."
Which as you can guess means it is not guaranteed, unlike the term deposits in this deal.
Perhaps it is time for the Australian Government Bank Guarantee to be increased above $250,000, to possibly $500,000.
Just like the old proverb, don't put all your eggs in the one basket. There's more than 90 institutions covered by the scheme and I believe you are covered for up to $250k in an eligible account with each. That's potentially more than $22M, which I suspect will be more than adequate for most Ozbargainers!!!
It's not that simple. For example, NAB, Citi Bank, Ubank, and 86400 are all now one deposit-taking institution and qualify for $250k in total.
Ifonlyiwasyounger - It was $1M when established in 2008 until 2012.
garuntee is worthless anyway.
Interesting times now, some home loan rates are still under 2%, very lucky for those on a fixed rate on a product with offset account.
you'd be mad to offset a rate that low given stable shares give dividend yields of ~4% fully franked, after tax on a 3% rate your breaking even tho, once upto 4% be sweet
I am interested in these interesting interests but I don't have $25K so I am not interested.