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Fixed Rate Savings Accounts

Discussion in 'Money Management' started by HOLLYWOOD, 2nd Sep, 2009.

  1. HOLLYWOOD

    HOLLYWOOD Member

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    Do they exist? I'm looking to invest a portion of money into a savings account with high interest (Hopefully 4-5%) but does anyone know if they are all variable? Or are there fixed rate savings accounts too? Any recommendations?

    Thanks! :)

    I think the only requirement is that I have access to it incase of emergencies otherwise it won't be touched.
     
  2. AsxBroker

    AsxBroker Well-Known Member

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    Hi Hollywood,

    You might want to investigate online savings accounts and term deposits.

    Cheers,

    Dan

    PS These may or may not be suitable for your needs, read the Product Disclosure Statements before making a decision.
     
  3. HOLLYWOOD

    HOLLYWOOD Member

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    I've been looking at those but as stated they all seem to be variable. Are there any fixed interest term deposits? Right now I'm with a Commonwealth Netsaver at a measly ~2.25% when I could be getting double that elsewhere but if I could lock in to a fixed interest rate rather than a variable it'd be much better.

    Suncorp seem to have some good savings accounts too, along with UBANK however they are variable I believe.
     
  4. AsxBroker

    AsxBroker Well-Known Member

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    Hi Hollywood,

    Online savings accounts are usually variable as you have access to your funds. Term deposits are usually a fixed rate for locking your funds away for a certain period of time. You should probably visit your local bank branch to discuss which meets your needs best, then you can hunt online to see what offers are available.

    Cheers,

    Dan
     
  5. HOLLYWOOD

    HOLLYWOOD Member

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    Great, thanks! :D

    What does it mean by " Interest Given: On Maturity "?
     
  6. AsxBroker

    AsxBroker Well-Known Member

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    That you will be given interest on maturity. Your obviously researching the fixed term deposit rates. Most headline term rates for 12 months or less will be paid on maturity though you can also ask for interest to be paid more frequently though you will probably be given a slightly lower rate of interest.

    Cheers,

    Dan
     
  7. HOLLYWOOD

    HOLLYWOOD Member

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    So if its a 12 month deposit then you only get interest once the 12 months is up, is that what you mean? I also saw others when I was browsing where some were paid daily or monthly but just had a brief look
     
  8. AsxBroker

    AsxBroker Well-Known Member

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    For a term deposit, yes that is what I mean.

    I stand corrected but as far as I am aware nobody pays interest daily (due to the sheer administrative work) but they do calculate it daily and usually pay monthly interest on a bank account.

    Cheers,

    Dan
     
  9. HOLLYWOOD

    HOLLYWOOD Member

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    Ah thats what it would've meant :) Ok great, thanks a heap!
     
  10. AlanM

    AlanM New Member

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    Dear Hollywood,

    For decent “over-the-counter” term deposit rates I suggest you checkout Bendigo Bank. Currently you will easily get your 4-5%.

    Good news for savers is that the cash rate will soon be on the up.

    Cheers
     
  11. AsxBroker

    AsxBroker Well-Known Member

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    I hope before rates go up the the stimulus packages are ceased, then we will get an indication of the health of the real economy which is being hidden by government stimulus.

    Stimulus withdrawal from December: Swan

    Cheers,

    Dan
     
  12. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    For an online account without many of the restrictions often placed on them and with good interest rates (5.11% currently) - check out UBank - A good place for money. Backed by NAB ... these guys are an online-only bank owned by NAB.

    Online account setup is very easy (no paperwork!). Can direct debit/credit funds in and out very easily (not just to a single linked account). Can even have your salary paid directly into it.

    Will be interesting to see what they do with interest rates - no indication that this is just an introductory rate, but that might just be clever marketing.