Post # 1
has any bees put there wedding funds into a term deposit?
FI and i have paid deposits on everything we can think of, and already bought some things for the wedding all up spent $6500. We have $5500 still in our savings account and are thinking of putting that 5 thousand in a 3 month term deposit, because we figure we continue to save $1600+ a month nothing should come up that we wouldnt have the funds for and it would reduce temptation to spend it on things we dont need (yet) like upgrading our furniture haha.
Im just not sure if the term deposit is worth while. Has any bees done this?
Post # 3
Term deposits are only worth it if you put a substantial amount away for a LONG time. 3 months isn’t long enough. Just have some self control and don’t touch the money.
Post # 4
that was kind of rude, clearly i have self control that in 8months we have saved over 12grand. they offer a 3month termdeposits, the plan is to re invest after 3months the same plus the extra 5grand.
Post # 5
I wasn’t meaning to come off rude. If you want to do it, then do it. My guy chucked a lot away for over a year, gave him a boost. But wasn’t really substantial. I googled them recently, plenty of banks have calculators to see if it’ll be worth it.
Post # 6
I don’t think the PP was rude at all but just telling the truth. I also agree that 3 months isn’t long enough and I wouldn’t even bother putting it in a deposit for that short since the interest rate wouldn’t be much higher than my current savings account. I’ll give you an example with non-redeemable GIC’s since that’s what i’m familiar with in terms of what i’ve done in the past and am currently doing.
Checking: I’m not sure what it is but it’s SUPER low
High Interest Savings Account: 1.2% paid monthly
Interest Paid @ Maturity 90 days – 179 days: 0.8% (makes no sense to me since i’d be earning more interest in my saving’s account)
What i usually put it in is 1.5 years “Interest Paid Semi-Anually, Anually or Compounded Anually and Paid at Maturity”: currently it’s at 1.55% but i lucked out and got it when the interest rate was at 2.1% and one a 1.85% a year or two ago (matures at the end of this month).
My GIC’s are also within my TFSA’s(1.55%) so i don’t get taxed on the interest. I plan on maxing out the contribution space every year if i can afford to.
I hope this helps.
Post # 7
Don’t forget that you have to pay tax on the interest as well which can sometimes not make it worth it. And it can affect your other entitlements as it is deemed income by the ATO. So if you guys recieve any of the family assistances, medicare rebate etc etc it might be affected come tax time.
RAMS has a good high interest savings account at 5.75%, followed by Ubank (5.71%) and then Rabobank. Most of the high interest accounts give you a bonus if you keep the balance above your original deposit for 12 months. It might be a better option for you!
This is a good tool to use when looking for credit cards, loans, accounts etc.
Post # 8
It’s not worth it for three months. You’ll get so little back in interest, and then, like PP said, you’ll have to pay taxes on it anyway, so it negates the benefits. Just put it in a savings account and continue not touching it until you need it!