Opinions and thoughts please. I'm looking to park some funds for a while. I'm thinking options are Term Deposit with the bank or sitting it in Unallocated metal. Interest rates are going nowhere, inflation is looming. Thoughts?
Hi Julie, my true and honest feeling at this time is that I would go for the term deposit. My reason for saying this it that at least your capital will get the 250K Government bank guarantee on it plus a little bit of interest. I know a lot of people say the guarantee is not worth the governments word but I don't believe this. We are not talking about Estate Mortgage back in the 80's. We are talking about a current government guarantee. It is either that, which is not that rewarding or gambling with the price of spot and third parties with no government guarantees. Look at what's happened just recently, silver down 20% from its highs, gold down 10% and lets not mention bitcoin. Each to his own and I could be wrong but that is what I would choose.
I don’t see the logic with putting money into a term deposit these days. Getting a measly half a percent is not worth having your money locked away for a month. Unless there is a safe bank that doesn’t have a 1 month wait time for early withdrawal? you’re better off keeping it in a normal account and having instant access to it for things you can’t think of. With that out the way I would split it 50/50.
You got a good point there. Where I park my spare funds is here at 1.35% https://www.ing.com.au/savings/savings-maximiser.html or another one is here at 1.31% https://www.ubank.com.au/banking-overview/savings-accounts. Both are pretty good and no long term deposits. You just got to stick to the rules to get these higher amounts each Month.
First dont put money in term deposit, it is literaly a waste, when the few banks mentioned Silverling literally pays more on call. Second question is how long is "awhile" Thirdly how important is the money in the scheme of things Finally how active will you be in managing the money. If the money has to be used on a certain date (within the year) like settling an off the plan apartment just put it in a "higher" interest saving account. Of course no one wants to lose money but if time is closer to two years or more and risking few percentages off the total sum isnt critical, consider putting 95% in "higher" interest rate and 5% in unallocated. If gold goes up 20% or more than than you earned 2% or more on the total (1% from saving accont) If gold goes down 20% than you lost about 1% (on the total) The more leeway you have consider 90% saving / 10% gold.
Nah, I was just responding to Julie's OP which specifically asked about term deposits. I do the online high interest (not so high really) accounts myself.
Without knowing the time frame, what the money is for and how critical the money is, it is hard to advice 50/50. Gold could be 10 to 50% higher but it could also realistically be 10 to 50% lower too on X date.
If it's literal savings with no planned use, it's a no brainer to park it in metals. If you've got plans for the money, then your timeframe will dictate the utility of term deposits etc
Thanks everyone. Great advice. No hurry to retrieve the dollars but IF it's needed for an emergency or so, then I'd want it quick smart. So it sounds like 50 / 50 sounds like an option with metals and at call. A little interest research pending I'd think. Cheers.
