You can not decide whether to open a savings account or a high yield money?
While both are popular investment vehicles for Cash provides the relative stability and security when returns will, your choice on a number of factors, including your needs, saving targets and deadlines around them from. You want to be able to put your money in an emergency or quarantined to access constantly grow in the long term can?
Comparing the two, it is important to watch over the interest rates and consider the "real" rate of return if prices, inflation and taxes are taken into account.
Savings Accounts
What is a savings account?
Savings accounts generally offer higher interest rates to be used while accounts of daily transactions to provide invoices to be paid usually little or no interest. Savings accounts are designed to help you grow your wealth. Some functions like rewarding regular deposits (with a higher interest rate), while discouraging offer payouts.
Pros
Higher interest savings accounts, including savings accounts online that offer minimal or zero rates, which means you can easily access your money, enjoy higher interest rates than traditional accounts and to win over the compound interest on your savings.
What is compound interest? Unlike simple interest shall be payable at the end of a given period, accrued compound interest rates are regularly added to the principal or initial deposit, which each time calculated for a larger amount, the interest rates.
Usually required no minimum investment, so you can easily start it a savings account, a money account.
With a separate savings account will help you how far we come to keep track of your savings and in the fulfillment of its purposes. You can set up automatic transfers from your account transactions each day in your savings account.
Cons
The fact that it is easier to access their funds (eg a fixed-term deposit) can spend the temptation to increase.
If there is an introduction or owner attractive interest rate applies only for a short time, then it will probably be much slower.
They are at the mercy of variable interest rates very well in an environment of rising interest rates, but not so good when interest rates trending lower. You may prefer the guaranteed interest rate of a money offered.
What to look for:
The interest rate and the interest rate charged.
If appropriate, the duration of the introductory interest rate, and what is the interest rate that applies to the time the "honeymoon"?
If a minimum account balances or maximum required. The sanctions can be applied when the balance is outside of it.
Is there any bank charges?
Are you rewarded for regular or additional deposits and do not lose interest if you withdraw money?
Need to be linked to a transaction account of the account?
Read the product disclosure statement and make sure that the financial institution makes a strong Authorized Institution (ADI) in consultation with the Prudential Regulation Authority of Australia (APRA)
Time deposits
What is an investment?
An investment is a type of savings product to block an amount of money in a financial institution for a set period of time (the term) and pays a guaranteed interest rate. Only Authorised Deposit takers (ADI) can offer term deposits.
Pros
They are safe and reliable. An investment ensures security around the turn you get. Once you select the amount, timing and the type of interest, should be paid, you will know the total return.
Your savings are locked for the duration of your chosen mandate to 5 years, anywhere from 1 month - a great way to grow your wealth.
Interest rates are what fixed protected if interest rates fall during the reporting period.
There is very little risk of their money losing as deposits with an ADI, up to $ 250,000 are protected by a government guarantee (note that this also applies to savings accounts).
You can be a good choice if you are until you're a godsend, as an inheritance received lump sum sure how to invest.
Cons
They are less flexible than other products such as savings accounts online. Depending on the terms of the account, if you need to get your money before the deposit is not access to its maturity in the situation. Some accounts have waiting periods for access to their funds before maturity, usually a period of 31 days.
You may also need to royalties strong early release or sacrifice a portion of their interest.
Simple interest - unlike savings accounts where the compounds of interest - money earn simple interest and not capital growth.
A minimum deposit - about $ 1,000 - usually required. Higher interest rates will only apply to longer maturities and / or larger deposits.
You will not profit rates rise, because their savings locked in the lowest rate.
Automatic extension - you can choose to roll their savings into a new fixed-term deposits at maturity, but it can be a much lower interest rate - especially in the current environment of low interest rates.
Suncorp Bank
What to look for:
Time deposits best for longer-term investments, that is if you to use a lump sum amount that you do not have for a number of years.
Check rates and conditions for the early release - if you think you need to use the funds before the term deposit matures, the view that rather than in a high yield savings account.
The low interest rate environment Low power is not very suitable for investment in cash, so be sure to do your research to do to compare the products offered. Look over the headline interest rate if the returns compared and shop around for the best rate for the period that suits you. Try websites like comparison rate City, Choice and Canstar info.
If you have taken a term deposit, do not forget it! You could have automatically removed when due, in a new time deposit at a lower interest rate - especially in the current environment, the rates at six months and deposits slashed 1 year, to less than 3 percent was seen by some banks. Check the terms and conditions of the account to see if you started a reprieve after the investment has automatically that may allow it to change your mind without penalty.
While both are popular investment vehicles for Cash provides the relative stability and security when returns will, your choice on a number of factors, including your needs, saving targets and deadlines around them from. You want to be able to put your money in an emergency or quarantined to access constantly grow in the long term can?
Comparing the two, it is important to watch over the interest rates and consider the "real" rate of return if prices, inflation and taxes are taken into account.
Savings Accounts
What is a savings account?
Savings accounts generally offer higher interest rates to be used while accounts of daily transactions to provide invoices to be paid usually little or no interest. Savings accounts are designed to help you grow your wealth. Some functions like rewarding regular deposits (with a higher interest rate), while discouraging offer payouts.
Pros
Higher interest savings accounts, including savings accounts online that offer minimal or zero rates, which means you can easily access your money, enjoy higher interest rates than traditional accounts and to win over the compound interest on your savings.
What is compound interest? Unlike simple interest shall be payable at the end of a given period, accrued compound interest rates are regularly added to the principal or initial deposit, which each time calculated for a larger amount, the interest rates.
Usually required no minimum investment, so you can easily start it a savings account, a money account.
With a separate savings account will help you how far we come to keep track of your savings and in the fulfillment of its purposes. You can set up automatic transfers from your account transactions each day in your savings account.
Cons
The fact that it is easier to access their funds (eg a fixed-term deposit) can spend the temptation to increase.
If there is an introduction or owner attractive interest rate applies only for a short time, then it will probably be much slower.
They are at the mercy of variable interest rates very well in an environment of rising interest rates, but not so good when interest rates trending lower. You may prefer the guaranteed interest rate of a money offered.
What to look for:
The interest rate and the interest rate charged.
If appropriate, the duration of the introductory interest rate, and what is the interest rate that applies to the time the "honeymoon"?
If a minimum account balances or maximum required. The sanctions can be applied when the balance is outside of it.
Is there any bank charges?
Are you rewarded for regular or additional deposits and do not lose interest if you withdraw money?
Need to be linked to a transaction account of the account?
Read the product disclosure statement and make sure that the financial institution makes a strong Authorized Institution (ADI) in consultation with the Prudential Regulation Authority of Australia (APRA)
Time deposits
What is an investment?
An investment is a type of savings product to block an amount of money in a financial institution for a set period of time (the term) and pays a guaranteed interest rate. Only Authorised Deposit takers (ADI) can offer term deposits.
Pros
They are safe and reliable. An investment ensures security around the turn you get. Once you select the amount, timing and the type of interest, should be paid, you will know the total return.
Your savings are locked for the duration of your chosen mandate to 5 years, anywhere from 1 month - a great way to grow your wealth.
Interest rates are what fixed protected if interest rates fall during the reporting period.
There is very little risk of their money losing as deposits with an ADI, up to $ 250,000 are protected by a government guarantee (note that this also applies to savings accounts).
You can be a good choice if you are until you're a godsend, as an inheritance received lump sum sure how to invest.
Cons
They are less flexible than other products such as savings accounts online. Depending on the terms of the account, if you need to get your money before the deposit is not access to its maturity in the situation. Some accounts have waiting periods for access to their funds before maturity, usually a period of 31 days.
You may also need to royalties strong early release or sacrifice a portion of their interest.
Simple interest - unlike savings accounts where the compounds of interest - money earn simple interest and not capital growth.
A minimum deposit - about $ 1,000 - usually required. Higher interest rates will only apply to longer maturities and / or larger deposits.
You will not profit rates rise, because their savings locked in the lowest rate.
Automatic extension - you can choose to roll their savings into a new fixed-term deposits at maturity, but it can be a much lower interest rate - especially in the current environment of low interest rates.
Suncorp Bank
What to look for:
Time deposits best for longer-term investments, that is if you to use a lump sum amount that you do not have for a number of years.
Check rates and conditions for the early release - if you think you need to use the funds before the term deposit matures, the view that rather than in a high yield savings account.
The low interest rate environment Low power is not very suitable for investment in cash, so be sure to do your research to do to compare the products offered. Look over the headline interest rate if the returns compared and shop around for the best rate for the period that suits you. Try websites like comparison rate City, Choice and Canstar info.
If you have taken a term deposit, do not forget it! You could have automatically removed when due, in a new time deposit at a lower interest rate - especially in the current environment, the rates at six months and deposits slashed 1 year, to less than 3 percent was seen by some banks. Check the terms and conditions of the account to see if you started a reprieve after the investment has automatically that may allow it to change your mind without penalty.