Hi guys,
I want to start putting cash away so that in 3 years I will have around $20,000 to use a deposit for my own home.
I will have $5000 to start it up with, and then theres the FHOG of $7000. So really I have to try and make $8000 in 3 years. I will also be depositing amounts every month too.Ive looked at the CBA’s cash management trust which is around 3.9% pa, paid quarterly. But am not too sure on others.
Can you guys please give me some ideas on different accounts, or what you have done.
thanks in advance.
ING direct is fairly good. Internet only account, no bank fees or charges, interest is 4.75%, no set term, money at call.
Being an internet only account you could set up a regular weekly deposit from you normal bank account.
ingdirect.com.au
I think the Citibank online account pays 5%
Hi Andrew,
I agree with Dingo. I use Ing Direct, it is really simple to use. No catches with the fees. The site says it can take up to 5 days for your money to transfer when withdrawing, but I’ve always got mine the next day.
No I don’t work for ING!Keep smiling,
Sue [
]Be careful not step on the flowers when you’re looking at the stars
Thanks for the quick replies guys!
Ive just taken a look at INGDirect and they looks pretty good.
Any other ideas, what about shares? They seem to risky to me, but in 3 years might give a better rate than 4 or 5%.
We both also use ING Direct, it is excellent, it is linked to your everyday streamline account which means you do not need to change banks either[
]Fudge111 and Broz00
Hi Andrew,
If you are interested in shares, it might be worth your while to look at managed funds. This way you can diversify what you buy without having to manage the day-to-day business side of managing shares.If you look at Money Magazine, they list the top performing managed funds each month and also have an eye on a fund section where they look into one fund in great detail.
Of course though, shares in general are a lot more riskier than putting your money into a bank.
Good luck!
Andrew
I’d stay away from shares as the returns are too volatile for your needs. You have a specific goal and you need to be sure of what the outcome will be.
Looking back at your numbers; you said you need to save $8000 in 3 years. This equates to only $222 per month or $50 per week or $8 per day. Now I have no idea of your circumstances but I’m sure you could save more and get that deposit sooner.
As a start have a look at Anita Bell’s book “Paying off your home loan in 3 years”. She has some great ideas for getting that deposit quickly and then paying off the loan as soon as possible.
Citibank does offer 5% and has no fees.
Dingo, yeah shares are definitely are too volatile to put all my money into them, but maybe spread it across a few companies + a managed fund?
I’m an Accountant and should be able to match the $220 a month fairly easily.Has anyone heard of Burns Philp shares? When I was in high school I did an assignment in buying shares, and noted that Burns Philp shares were at only 8 cents. I told this to my father, and he bought a HEAP of them, and then alot more at 20 cents, then 30 cents, until he now owns around 15% of the total shares of the company, and they are worth 70 cents!!!! So I was thinking of investing a bit into Burns Philp….
So with INGDirect, can I set it up so that it transfers cash from my CBA account into it every week or month? And would I get a better interest rate if I didnt withdraw anything for 3 years??
Andrew
Again I would stay away from shares as they can go up as easily as down.
I’m an accountant as well and have been for more years than I care to remember. Don’t be afraid of being in cash just because everyone is in shares and is boasting about great returns. You have your goal just stick to it.
Yes you can set up to make regular deposits from your CBA account into ING. There are no increased rates for leaving your money there for 3 years. That the best thing; good rate of interest and access when you need it.
Andrew,
I agree with the assessments on the page, for your purpose I believe an online account (ING, Citibank, St George etc) would be the best option. There are several excellent accounts available with interest of around 4.75%-5.00% available.
I have an ING account myself, and I cant save for peanuts but I’ve gone 6 months without touching it and have set up a regular savings plan and have not been slugged with a single bank fee……………..yet.
Rodders
P.S. For your timeframe and what you want to do I would stay away from shares. Whilst I think the market will do well in the next three years it’s too risky for what you want and the time available.
Andrew,
As at the 8th September there in only one major shareholder in Burns Philp, Rank Group Limited, with over 50 % of the capital.
A couple of institutions have around 5 %
Do you mean 50% and not 15%?
The Rank group is owned by G. Hart a self-made millonaire in NZ
I’d have to reccommend the St. George one (or perhaps even another banks one) because with transferring cash from your St. George DragonSaver account to your everyday transaction account, it’s instant, i.e. you don’t have to wait overnight. I’ve found that very convienient when needing access to savings immediately.
Hi there guys,
I’ve been using EasyStreet which offer 4.8% (was 5% up until a few months ago). There are no hidden fees and is very easy to set up. The only thing is that you need a minimum $1000 to start the account up. Have been pretty happy with them so far (its been a couple of years) but my boyfriend also has an account with ING Direct which he is happy with also.
Good luck.
Kim
xyzzy: Yeah I just checked it out, and I know Dad owns around 500,000 – 600,000 shares. The top 20 shareholders all own over 1,000,000 shares.
Thanks for all the info too guys.
Its been very helpful, and I think I will start up an ING account very soon.Cheers,
Andrew
The Rank group is owned by G. Hart a self-made millonaire in NZNot bad for an ex tow truck driver (not many people know that) – but he has the tats to prove it. He has done very very well in the circumstances.
Hey, ING Direct are good for holding cash temporarily – however putting your money into shares or a top performing managed fund can make more money.
The way to do it without losing big time is….to make SURE you have an exit point with your purchase. For instance, Say you buy @ 50 cents a share – input an EXIT with the buy – say at $0.48 cents per share at which point they automatically sell.
this allows you to move the money to a higher yeilding share or fund without losing too much.
What I do is I raise my exit level periodicaly – so if I buy at $0.50 and set my exit at $0.48 but the share goes up over 12 months to the point where it is say $0.60 then I will set an NEW exit at $0.58 – if it drops and hits 0.58 then I automatically exit still having made $$ and buy a new fund or shares with that money
This does require work and maintainance but it will grow $$ at lo risk and higher than the bank savings account.
Forget the shares/managed funds – you have a set a goal that you should stick to.
Check out the money tables in Money magazine (page 92) for the best deals.Citibank’s online cash mgt account is the best with a rate of 5.00%. Other options are AMP easySaver (4.80) or ING Direct (4.75).
Best of luck.
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