Our Burleigh Heads Branch Manager Nicky Davies has five tips for investing.
1. Don’t just look at Term Deposits
If you are looking for higher interest returns than on ordinary savings accounts, considercash management accounts and bonus saver accounts. These allow you to make regular deposits but your money remains ‘at call’, so you can withdraw it. You will lose bonus interest if you make withdrawals though.
2. Consolidate or not?
Consolidating accounts can help to maximise the interest return on your savings because many financial institutions offer higher rates for larger amounts.
Having several accounts provides flexibility in accessing money and reduces the risk of missing out on higher or special interest rates.
3. Don’t lock away all your savings
Keep some savings available ‘at call’ to cover regular needs and unforeseen emergencies.
4. Avoid dipping in
Have a realistic timeframe over which you wish to invest your money. Early withdrawal can eat into your gains.
5. Understand how interest is earned and paid
Look at when interest is credited, not just when it is earned. The more often interest is both calculated and credited (ie daily rather than quarterly or annually), the more you will earn.
At the Greater, we can help you to help you reach your savings goals faster.
What are some your tips for saving and investing? Share them below.