Heartland Bank (not totally share related)

[justakiwi]

Yes, compounding interest is definitely the way to go. That is the reason I opened the Direct Call account with Heartland. The lower credit rating risk aside, my money will do better there, at 2.25% than it was in a term deposit for 3 months at 2.8%. Plus, my money is accessible in the event of an emergency, which is important given my situation.

At the moment I need to build up a decent emergency fund, but once I have done that I think I will try to add to my share holding - possibly an ETF. The few shares I have now pay a dividend four times a year so I’ve been able to accumulate shares via DRP which is a very painless and quick way to build on what I started with. Would be good to find something similar down the track.


I know bugger all about shares but do find it all quite interesting.

[kiora]

Money in the bank is a dead loss.
You could just pick an investment or fund eg that is liquid in case the money is required urgently

[justakiwi]

True. Hadn’t actually considered that.

Money in the bank is a dead loss.
You could just pick an investment or fund eg that is liquid in case the money is required urgently

[Entrep]

Money in the bank is a dead loss.
You could just pick an investment or fund eg that is liquid in case the money is required urgently

Anyone have some suggestions for the sort of thing that kiora is referring to? Also sick of getting bugger all interest on money sitting in the bank, but need near instant liquidity.

[justakiwi]

The reality is, if you need near instant liquidity, your only option is the highest interest paying call account you can find (currently Heartland). Yes, you could invest in a fund/company that has excellent liquidity, but you may need access to your funds faster than you can put a sell order in, have it filled, and receive payment into your account. I guess it depends on what you mean by “near instant.”

Anyone have some suggestions for the sort of thing that kiora is referring to? Also sick of getting bugger all interest on money sitting in the bank, but need near instant liquidity.