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Best account for interest short term

Discussion in 'Finance & Banking' started by Insight, 27th Mar, 2008.

  1. Insight

    Insight Brisbane Buyers Agent

    Joined:
    24th Sep, 2006
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    229
    Location:
    Brisbane
    I need a good place to park some cash short term.

    I would like a solution for capital, say some combination of a rolling cash investment with terms from 1-3 months. I'm as green as the grass in this area and don't even know where to start looking beyond say a 1-3 month term deposit with my bank. Interest isn't a huge concern, I guess the main concern is security of capital, low transfer fees as I would be moving it around a bit.

    Ideas?
     
  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Who do you currently bank with ?

    Online high interest savings accounts are as good as anything these days - often with interest rates as high as most term deposits (although if you are prepared to tie up the cash for 3 months+ should find a term deposit paying better).

    If you have NAB bank accounts, their iSaver accounts are very good (currently 7.05%) - with instant fund transfers to your other NAB accounts. ING Direct are still going well (currently 6.9% and can be linked to any bank account), although you can possibly get slightly better rates from some of the newer players (I've only use NAB and ING Direct myself).

    I generally find CMA and CMTs to pay relatively poorly - as much as 1 - 2% below the high interest online savings accounts.

    Have a look at InfoChoice > Home - they usually have good information there.
     
  3. Jen

    Jen Member

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    Rabo bank advertise on this site that they give 7.3% on call. Their account is a linked account. I have an account with them - easy to deal with
     
  4. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Ahh yes - check out:

    • 7.3%
    • 8.15% for 6 months or 7.75% for 3 months
    • 7.5% for as long as you don't make withdrawals
     
  5. Insight

    Insight Brisbane Buyers Agent

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    24th Sep, 2006
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    Brisbane
    Food for thought, will do some digging.

    I have a couple of banks at the moment, just looking for some shorter term options.

    You could ladder your three month deposits to help, say have them maturing one month after another to relieve the tie up issue.

    What about the treasury market? Or whatever is the equivalent of investing in US T-Bills.
     
  6. Old Mate

    Old Mate New Member

    Joined:
    16th Apr, 2008
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    Location:
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    If you have a savings account with Suncorp you can link a sub account to it which will earn 7.15%. it has free unlimited transactions over the internet or the phone and pays out monthly.