Cash & Bonds Where's best place to keep cash other than a bank?

I was just thinking,

With the government guarantee of up to $250k if your bank goes under.. Where is the safest place to put large sums of money other than splitting it up across our big 4 banks?

Reason I ask is once a large sum of money gets split up, the bank is more reluctant to hand out a generous interest rate..

I have negotiated 3% with my bank because there's a large sum held there in a regular bank account.. But if I split this up across 4 banks they will end up each giving me a lower rate because the amount won't be as attractive to them..

I need liquid cash to slowly pump into the stock market over the next 8 months or so.. So I don't want to tie the money up too much.


-Frank

 

Can't help it ...

 

Hahahaha

 

Buried in the back yard, my father did this, Italian's are funny about money, they don't trust anyone. Hell of a job digging it up when he passed away. True story.

MTR

 

@Frank Manno, everything is up to you but I get the feeling you're starting to fret a bit. Try and chill out a little.

You state you intend to place your funds over 8 months. Fine. But why do you think the banks or maybe other financial institutions will go down the tubes during that time-frame? And if one did, I'd hazard a guess the others wouldn't be far behind. Nor would the share market for that matter.

Spreading the funds over multiple fin instos ain't going to help you much. The bigger players will be long gone before you or I even get a whiff of impending doom.

Again, all up to you but possibly sit back and contemplate if you are overreacting to an event which may not happen.

 

You could also lower your anxiety by producing a number and anchoring onto that number,but btw which bank is offering 3% and it matters .0001% how far you spread the money when the #### hits the high speed fans everyone is marred with self-doubt..

 

I was just reading an article in which it mentioned the govnt $250k bank guarantee , in which if a bank goes under the govnt will pay up to $250k back to you.. and my mind started playing tricks on me

Yeah but if this happened the govnt will at least guarantee $250k of it.. Hence why I started thinking of splitting it in $250k chunks across banks..

I need to stop thinking of 'worst case scenarios' and start thinking 'most likely scenarios' ..


-Frank

 

Bury it in tins in the Chook Pen

 

Yes, our grandparents did this too, but dad hid it under pot plants too (the ones you do not need to water though...)

 

I asked this question once from a friend, however never received an answer, I think most is held in papers overseas, however how would you feel if you would have millions (say sold a company 15 years ago for $148million?). Where would you the keep the cash while making your investing decisions?

 

@Frank Manno - 8mths is a small time.
I can't see the banks tanking in 8mths.
Leave your money where it is.

 

If it's going to bother you accept the 0.5% less you'll get over 8 months by splitting

 

If your concerned about the banks going under, what shares are you buying?

 

Gold bars in a swiss bank.

 

US treasuries.

 

If you don't mind me asking, which bank gives 3% if you negotiate?

 

"Low Risk" ETF like Vanguard could be an option to consider.

 

If you think the government will actually be able to pay people up to 250k in the event of bank collapses across Australia - you'll be in for a shock. Even if they did - that 250k will be worth a packet of gum in that scenario.

If you're truly paranoid about it, the true conservative contrarian view is to invest in gold, guns and baked beans.

There's even bank accounts you can setup now which hold all of your funds in gold and come with a debit card which auto converts the gold into cash to allow you to freely transact anywhere. (Goldmoney - though I'm not sure they in particular offer it in Aust at this time)

 

Hahah thats a good one actually. I should stay away from any of the bank shares lol

-Frank

 

I'll respond to you in private..

If anyone else wants to know please inbox me on here.. But it was an introductory rate that I kind of took advantage of. Will they give you 3% off the bat right now? I don't know.. But I can explain in private.


-Frank