All Topics / Help Needed! / Question on Online Saving Account

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  • Profile photo of AilimeAilime
    Participant
    @ailime
    Join Date: 2008
    Post Count: 28

    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?

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    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 | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me

    100% Investment Finance now available on selected properties. Email us for further information.

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    Usually just one account will suffice.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of AilimeAilime
    Participant
    @ailime
    Join Date: 2008
    Post Count: 28

    Thank you very much, Richard and Jamie!

Viewing 4 posts - 1 through 4 (of 4 total)

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