Hi all,
I have $500k from a property sale and I would like advice on what to do with it. I am currently renting and waiting to work out where we want to buy (hoping the market will fall a bit while we wait). As we are waiting to find the right property I would like the money to earn some interest while we wait. I need flexibility as when we find the right place we will need access to the cash.
Any tips/advice?
Split it between banks and deposit to their maximums.
With interests rates being what they are, why not savings?
We were in the same predicament. Parked it in NAB Reward Saver account. Earnt bonus interest no problems (just make sure you pay into it at least $1) and don't withdraw).
There is a period every month where you can effectively draw down from the account without impacting the interest.
NAB pay on the second to last banking day of the month.
https://www.nab.com.au/personal/accounts/savings-accounts/na…
For example, this month, the interest will come in on the 28th of July (sometimes it can be a little late, overnight). The new month starts on 1st August. That gap is your movement time.
If you find a place to buy, try and have settlement a few days into the next month, knowing when your interest will come in and the 24-48 hours it'll take to make the settlement transfer. Doing this, we banked another $1500 in interest.
high interest savings accounts (with 3 seperate banks to keep it under the $200k limit if you're so inclined)
Isn't it 250k?
Maybe leaving enough headroom for all that interest to roll in and still be under the limit.
Cheers, fair enough…but the rates aren't that good ATM. :)
Possibly, I was going of memory and don't store 200k in savings accounts to need to worry about the exact limit :)
Savings, they have limits deposit up to the max limit on each savings. There's a spreadsheet with the full list of savings here on ozb