Best Interest Rates for savings - $100,000 don't need to access until 2016

Lsph on 14/01/2015 - 08:48

Hi all,

Just been hunting for the best interest rates for long term deposits.

The best I can find is the ME account that can be seen here: http://www.infochoice.com.au/banking/savings-account/term-de… (up to 4.10%).

To give a bit of background, I have just purchased (paid deposit for) a block of land that won't be ready to build until around October 2016 - first home owner. I have about $100 000 in savings that I have in my wife's name for tax purposes and just looking for the best yeild until we need to use to pay for the land.

Any suggestions would be much appreciated. It seems the first home owner savings account is being abolished, so won't be much use.

Financial

Comments

  • lplau on 14/01/2015 - 09:44

    Term VS Flexible is what you need to decide.
    It may actually be better doing a regular savings account, as our interest rate is pretty much rock bottom, therefore it can only really just get better.

    However Term Deposits usually attract a lower interest rate than the flexible, this is only good if you see the interest rate is going to keep dropping (Highly doubt it will drop any further).

  • mehow on 14/01/2015 - 09:58
    +3

    ubank transaction is good, just need to deposit $200 each month

  • coolsteps on 14/01/2015 - 10:05
    +2

    try a citibank gold term deposit then get a preapproved platinum card (24months b/t at 0 % )$0 annual fee or signature credit card (200k invested or 50k term deposit and some proof of income) with 6 mths 0 % bal transfer for the wife without proof of income . then make a $1 purchase with the card to get your 60k points and pay it off and then ask for a self cheque of 80% of limit and invest with ubank for 6 months or 24 months for platinum card.

    • FiDad on 14/01/2015 - 16:05

      Are you sure that $0 annual fee card also comes with 60k bonus points?

      • coolsteps on 14/01/2015 - 20:28

        yes if your are a citigold customer and apply via a special form you can choose 50k for qantas or 60k citi rewards points for the signature credit card during activation

        • Hammando on 15/01/2015 - 11:03

          Coolsteps are you preapproved or they just waive the fee if you have $200k invested with citigold for the Signature? I couldn't find it on their website. Thanks

        • coolsteps on 15/01/2015 - 20:17
          +1

          @Hammando: yes if your are a citigold customer and apply via a special form ask your Manager. yes you are preapproved no proof of income required if you have deposits 100k for plat or 200k for signature and finally 250k for prestige but it comes with a $350 half annual fee then once you activate your selected card you can transfer all your funds out of the online saver from citibank if you like but you may get hit with an annual fee the following year if you aren't still a citigold client but just ask them to convert it for free for life current offers like veda before the anniversary.

        • Hammando on 16/01/2015 - 10:18

          @coolsteps: Thanks for the info!

    • AM1 on 15/01/2015 - 08:01

      Hi coolsteps, can you explain this little trick a little better and for a scenario where there is no existing debt/balance (anything to balance transfer to new card) and for 60-100k savings to earn decent interest on?

      • coolsteps on 15/01/2015 - 20:20

        make a $1 purchase and pay it off by online funds transfer from your other citibank accounts to first to get the points then 2 days after you called to activate card just call again and ask for a cheque to self for 80% of your approved limit for 0% for 24 months for platinum card and 6 mths for the others.

  • Almost Banned on 14/01/2015 - 12:42

    Risk v return is the constant issue.
    IF you want the safety of a bank you are looking at around 4.1%
    If, however, you are prepared to take more risk then you could look at something like mortgage backed securities which are offering around 7.5% - but again, without the safety of a bank.
    You could also take a bit of a punt and put it into something like an index fund and hope the market performs over the next year.
    Good luck.

    • danyool on 15/01/2015 - 13:53
      +1

      would not recommend taking a punt if definitely need the funds next year. You could have the same or more capital, or you could be down big chunks of cash if there is a market crash and you are forced to sell at a low point.

  • Mad Max on 14/01/2015 - 13:20
    -2

    Rabo premium has good interest rates

    • Gunther on 14/01/2015 - 13:27

      Rabo only paying 3.6%pa.

      Ubank is 4.02%pa

  • ujwols on 15/01/2015 - 16:21

    Give it to me at 4.5%

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