Hello,
Im in the process of selling an IP and want to invest the money in a short term deposit, say 1 yr increments. Will the interest be calculated as steady income? or will it be just regarded as a future deposit ??? i would rather put it away than keep it in a bank account waiting for the next right IP to pop up.
I will probably leave around $50K in an “at call” account for “just in case” money to be on the safe side….
Thanx,
Jason
Take a look over at http://www.ingdirect.com.au
The money is at call and earns a comparable rate to the less flexible term deposit.
Spot
Hi
For lending purposes, generally interest will not be counted as income. It can be spent too easily.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
As well as ING, take a look at BankWest:
Essentially identical to ING but with 6% for the first 12 months, after which it reverts to 5.25% the same as ING.
GP
Thanx for replying to my question Terry.
Some info about rates of return…
Why would i choose ING or Bankwest when im getting 7.5% AT CALL from an Aussie company????[baaa]
And over 9% for 12 months term when compounded….
[thumbsupanim]Cheers
Jason
Which company is that Jason?
Simon Macks
Interest Free Home Loan Agent
[email protected]
0425 228 985Please email me rather than using the PM service here.
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Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
I use:
MFS
Citypac
Fincorpadd a www. b4 the names and a .com.au after the names… i think that should take you to the sites…
Been using them for a few years now and havnt had problems, MFS had a special deal a few months ago, 9.5% for 12 months (could have been 9%) interest paid monthly…
Thats a gr8 return in anyones language
Jason
I should probably put a disclaimer about suggesting the above companies so here it is…
Hmmm cant be bothered… do ya research and hope for the best!
Happy investing
TeacherK6…
the first 3 posts were talking about rates for cash. you are talking about rates for debentures (and other fixed term products). the return on debentures is higher because there is higher risk associated (ie, your capital is at risk, which is not the case with at call accounts or term deposits). Read article in Feb 2005 Personal Investor which reveals that Fincorp is one of the several companies which had a stop order placed on its products by ASIC. Report on fido.asic.gov.au. [biggrin]
Thanx for the reply Jason,
Not Knowing what a “stop order” was i got a bit worried that one of the companies i was using was in huge trouble…. so i looked up what you were talking about…
Is the Fed 2005 article referring to what happened towards the end of 2002??? as far as i can see it was just a problem with the wording in the Prospectus, and the issue was resolved in a few weeks…
But again, research is the key to smart investing, whatever means you use
Jason
From search of ASIC website, looks as though stop order issued as recently as 21/10/2004. (ORDER – NO SECURITIES BE OFFERED, ISSUED, SOLD, OR TRANSFD). Don’t know the details of this but Fincorp seems to have had a lot of ‘queries’ from ASIC since 2002.
The Feb 2005 article is about lack of disclosure in PDS. Generally ASICs concerns (in regard to seveal companies, not just Fincorp) were: doubtful debt provision, a lack of disclosure on porperty development, and misleading advertising. Article also says that Fincorp is one of the companies to have stop orders imposed in the last 6 months (although, if they have addressed ASICs concerns, it may have been revoked by now??)
Article suggest people read a report to be posted to fido.asic.gov.au website by late January. [drummer]
Further to the Fincorp story….look for more ASIC investigations into debentures issuers going forward
Be very scepticle about rates that seem too good to be true, becuase quite often they are and you risk losing all your hard earned! When you invest, be it debentures, term deposits, at call cash management accounts etc. ensure you check the credit rating etc. of the organisation you plan to invest with.
Typically higher returns come with higher risks – I know I would be happy with a little less return if I can be sure the cash will be there at the end of the day!
Cheers MattToo true…but funnily enough ING offers one of the highest rates and is also has the highest rating of any bank in Australia….higher than any of the big four.
Well then you got a winner in ING – as the money magazine will also agree!
Cheers
Matt
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