Income generation from the savings

Hi All,

Might be a silly question but while saving up money for the property deposit, what all the PCs do. Do you leave it in your savings account untill it is upto the required amount to get the minimal interest given by banks or are there some other strategies adopted by people to fasten the saving accumulation process?

Thanks
Nish

 

For our first property we did some share trading. In retrospect I think we were lucky, we made a small profit from it. We could have just as easily lost money.

These days we essentially put money in our savings account or other strategies around reducing non-deductible debt. It doesn't earn money, but it saves interest on the mortgage which in turn accellerates our savings a little.

 

I tried putting it in shares but they didn't go up and I sold them at a small loss once I'd saved up the deposit. So this time I'm just putting it in the bank. Funnily enough if I'd held onto those shares I'd have doubled my money.

A better way to go is to cut your costs and look for ways to supplement your income.

 

Ours is sitting in the offset account against our PPOR for the moment.

 

In the current environment there are only limited ways to accelerate savings without increasing risk.

To speed things up without risk you need to earn more or spend less.

Good luck, first one can be a hard slog

 

I have it in the offset against another property. That's a guaranteed saving of around 5%/annum

 

Thanks all for sharing your strategies

 

Focus on saving, than trying to boost up your savings in the short term via investing in shares etc.

Say you're saving to 40k - even if you made a 10% gain in 6 months, that's only 4k - not exactly blowing your investment goals out of the water and realistically if you can run a 20% guaranteed annualised return, best to stick to whatever you're investing in the interrim, than property.

 

I put regular savings into a managed fund and occasionally took some out to put into term deposits. It worked well at the time. Neither of those are right for now.
Will be looking to a managed fund again in a few months though.