
Westpac results: Two-thirds of our savings are in high-interest accounts
Interest rates for savings are at record highs, and we're not shy about hunting them down.
Read more…Are you looking to invest $1,000 and not sure where to start? Luckily, there are plenty of options available for you to choose from – it all depends on what your goals are and how much risk you're willing to take on.
This guide explains what these investment options are, how to distinguish between assets like shares, cash, options, futures and ETFs, and what sort of fees you need to pay.
If you've saved up $1,000, here are 7 things you can do with it:
Those that are less familiar with the market might think shares are only for wealthier people.
And while it is conventional wisdom to never invest more than you can afford to lose, how much you need to invest is actually less than you might think.
With the introduction of newer brokers to the market, you can now trade from as little as 1 cent. However, if you are buying Australian shares and you want CHESS-sponsored shares, you'll need to invest a minimum of $500. To read more about CHESS-sponsored shares, click here.
There's also what is known as exchanged-traded funds (ETFs). An exchange traded fund is a bundle of shares or options that is listed on a stock exchange that you can purchase through a single trade. They behave similar to shares in that you can buy and sell them on an exchange. Depending on the ETF, this can allow you to have a small stake in hundreds of listed companies. The broker will usually have the same minimum requirements for shares and ETFs.
When it comes to signing up for a new broker, there are a couple of things you might want to keep in mind
Important: The standard brokerage fee displayed is the trade cost for new customers to purchase $1,000 of either Australian or US shares. Where a platform charges different fees for both US and Australian shares we show the lower of the two. Where both CHESS sponsored and custodian shares are offered, we display the cheapest option.
Disclaimer: Performance, fees and insurance data are based on each fund's default MySuper product. Where the performance, fees and insurance data for the MySuper fund vary according to the member's age, results for individuals between 40 and 49 years of age have been shown. This article is general advice. You should consider your personal circumstances before deciding if a superannuation product is right for you. Superannuation is a long-term investment and past performance is not indicative of future performance.
The answer to this will depend on how long you can afford to have your money locked away for. In a high inflation, lower cash rate environment, like we currently have, leaving your money in the bank or at home means you will be going backwards.
For example, if you left your $1,000 under your mattress since 2000, thanks to inflation, in 2022, that same $1,000 would buy roughly 57% of what it used to. As such, your purchasing power has gone down.
And those 22 years were considered for the most part to be a low inflation environment. As it currently stands, we are in a high inflation world where Australia's inflation rate is 7.8%. This means your money buys 7.8% less every year.
However, you should never invest money that you need over the short term. This is because prices fluctuate over time. Unfortunately, this could mean when you need your money, your investment is actually worth less than when you started.
If you have a long time horizon, shares and ETFs can be a good investment. Can you afford to wait for a year or more to get a good return on your investment and are you prepared for the possibility of losing your investment entirely?
If you want guaranteed returns without the risk, look at high-interest savings accounts and term deposits. Both earn you interest as long as you have money in the account. Term deposits will require you to lock away funds for some time, but high-interest savings accounts let you access your money as needed.
Interest rates for savings are at record highs, and we're not shy about hunting them down.
Read more…The average Australian had $40,617 in savings in October, according to Finder’s Consumer Sentiment Tracker.
Read more…Would you be better off with a high-interest option instead? I've crunched the numbers.
Read more…Trust in traditional banks is growing with more Aussies saying they bank with the big four, according to new research by Finder.
Read more…Australians are hoping to accelerate their savings by getting the best rates, according to new research by Finder.
Read more…Here's where you can get a decent return on your hard-earned cash.
Read more…How popular is share trading?
34% people have invested in shares or cryptocurrencies, according to our consumer sentiment tracker. 43% of men said they have invested while only 25% of women have invested in shares or cryptocurrencies. NSW and Victoria are the most popular states for share trading.
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