Hello everybody
While learning about investment property, is it better to keep one's saving in one online saving account, or spread it over two or more online saving accounts in the meantime?
I thought it will be good to keep all the money in one account with the highest interest rate.
My friend believed it is better to spread it over two or more accounts with slightly different interest rate for safety/ diversification/flexibility purpose. For example: a saving of $200K is spread in two different accounts, with one account offers 0.2% less than the other. In this case, the difference in 0.2% interest is considered as the 'price to pay' in achieving the purpose.
The way I see it, as long as the amount is under the Government guarantee amount, then it is safe.
Also, my understanding with most online saving accounts is we can withdraw any amount we require at call.
Did I miss anything?
No not at all but remember the Govt Guarantee has been wound back so make sure you don't have more than the threshold in any one institution.
Course then you have to ask yourself do you have any loan on a PPOR / IP and whether you are better depositing the funds in an offset account.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Usually just one account will suffice.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Thank you very much, Richard and Jamie!
You must be logged in to reply to this topic. If you don't have an account, you can register here.
