How best to invest a small amount

Viewing 3 posts - 1 through 3 (of 3 total)

FALCON
Participant
@falcon
Join Date: 2003
Post Count: 20
October 29, 2003 - 10:27 am
hi people
im after a little advice,im wanting to create a small personnal savings.As most of my income seems to go straight into buying assets or living expenses.i mainly just want it for piece of mind and for emergences or short term income loss.
problem is it will only be $1000.00 to begin with and about $100.00 a month deposited i was going to just open a bank savings account but most only pay around 3.00%pa which is less than inflation.
so should i just pay it into my mortgage and save 6.25%pa on it. or is there another way to get a better return.
Huey
Participant
@huey
Join Date: 2003
Post Count: 213
October 29, 2003 - 11:42 am
Hi Falcon,
1. You can get 6.25% if you put your savings in a mortgage offset account (tax free if it’s on your PPOR).
2. You can get 4.75% from ING bank but interest will be taxed.
In both cases your money will be available at call.
Regards
Huey
Billfromoz
Participant
@billfromoz
Join Date: 2003
Post Count: 381
October 29, 2003 - 1:13 pm
G’day Falcon…
Huey is right… but No1 is your best bet.
If you have an offset account with your mortgage “park” your money and savings there.
Saving 6%+ on your mortgage is as good as earning about 10% before tax. A better option is to get the Bank to include a Line of credit as part of your martgage… like a sub-account: Park your money in the LOC and only use it for investment down the track….add toas often as you like and save 6%+ on your main mortgage account.
Cheers
Bill
Bill O’Mara
Real Estate,Mortgages,Share Market Strategies.
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