Best place to keep a large amount of funds?

Hi All,

I am in the process of selling an investment property. The profits made from the sale will go towards buying a PPOR. At this stage, we will only look to buy a PPOR in the next 6-12 months, so I want to make sure these funds are able to "grow" as well as not be "eroded" by silly spending.

Where would be the best place to keep these funds? Ideally I would want them to be somewhere where a high amount of interest could be earned and where its not “easily” accessible.. by that I mean not sitting in my “day to day” account when there could be a temptation to spend it.

Any thoughts and suggestions?

Cheers,
Robbie

 

Fixed term deposit BUT in this low IR environment it’s hardly going to “grow”.

 

Offset AC?
RAMS 3% HISA?

 

I guess a fixed term deposit would be better than having the funds sitting in your transational bank account for 6-12 months. What interest would you get in a fixed term deposit?

Also, would I be able to add the funds to my super, but draw it when needed (i.e. to buy a PPOR)?

 

Open a CommSec account ,and bang the whole amount in CBA ,it will either go 2 ways a big payoff or you will ask yourself WTF happened..""IMHO""

 

Then i guess the above not an option?

 

No

 

BTW.. I do plan to put some of the funds into more "riskier" investments (crypto), but the bulk i want somewhere more secure and less risky.

 

Really? Look up canstar.

 

2.7% seems to be a ballpark figure.

 

I can give you my BSB and account number if you like?

 

Fixed term deposits are subject to the amount but are not great at the moment. Expect around 2%
You might be able to game the system by having multiple bonus saver accounts but that erodes the principle of compounding interest so you'd need to weigh it up

 

Any chance you've never had a PPOR and are eligible for FHOG? If so then putting in your Super might be an idea

 

Have you allowed for CGT?

Pray tell, what percentage are you going to 'invest' in cryptos?

 

Sailing in a same boat (or similar situation) and after all that research -decided to put money into Robo for 4 months HISA and opened Mrs acc with HSBC and gonna keep some in the super saver HISA acc. After 4 months funds can go to flexi saver/premium saver where int rate is bit less but as long as last day of the month balance is increasing by certain amount we will get bonus int.

Or will see if after 4 months any other bank has any introductory rates available. TD is not for us as we are looking for PPOR so if in case we find one tgen have to pay the cancellation charges etc. Hope it helps.

 

See CBA comment from @willair then

Crypto Curency ...

 

I opened a AU corp bond index fund account with average age to maturity ~ 3 years and dumped most of my cash there. Keep in mind that only wholesale accounts have reasonable expense ratios. Retail accounts suck. I have explored putting it into appropriate ETF and it may make sense for smaller amounts.

 

Robbie, you can lend it to me, I'll pay you 4% pa but I'll need it for a couple years or 3.

 

Consider income ETFs. They have a ready market so you can sell buy through broker. All vary slightly and you can tailor risk - Maybe even a portfolio to diversify a little Watch Bond ETFs as the prices moves inverse to yield. It can bite like cutting a fixed rate loan.

iShares Income ETFs | iShares - BlackRock
BetaShares Exchange Traded Funds | ETF Australia
MXT : MCP Master Income Trust | Metrics Credit Partners (eg target cashrate + 3.25%)
etc....

or you could use a ETF that uses share yeilds ie HVST. It may be exposed to market risks to a greater degree but may include franking credits.