Funds Focus

I recently had a client approach me asking my thoughts on a Private bank offering them 8% for a 3 year term deposit held in USD.

My initial thoughts were it’s a scam,8%pa seems ridiculously high for deposits in AUD, but 8%pa in USD is ludicrous. Australian Term Deposits are around 4% for 3 years (with an RBA rate of 2.5% and the tailwind of cash hungry banks), by contrast, the US Fed Reserve rate is 0.25% and I would be surprised to see anything North of 2% but more likely around the 1%-1.5

In times of falling markets, even the most hardened investment professional can panic and overlook the simplest solution.

I recently found myself watching a feature on Bloomberg covering investor strategies in a falling market. A panel of experts were sitting around a table discussing what investors could do to protect their portfolio or possibly benefit from falling share markets. Their discussion centred on bonds, as the debt markets tend to rise when equities fall; gold, as the ultimate

Strategies for a falling market

A term deposit supermarket which offers flexibility to switch providers to obtain the best rate can provide a significant advantage when looking at your term deposit options.

In terms of investment opportunities, it is no wonder that Term Deposits are so popular, they are by far the easiest product to understand. You put your money in the bank and you get paid an income.

Yes, there are options, such as do I want to receive interest daily, monthly, yearly