# Cash - Where to put it?



## glenn_r (28 January 2009)

I have a couple of term deposits rolling over next month and was wondering what other people are currently doing with their cash as the RBA is tipped to cut another 1% next week, bank interest is not very flash ?


----------



## Sean K (28 January 2009)

glenn_r said:


> I have a couple of term deposits rolling over next month and was wondering what other people are currently doing with their cash as the RBA is tipped to cut another 1% next week, bank interest is not very flash ?



I've PM'd my bank details glenn. 

Cheers!


----------



## glenn_r (28 January 2009)

The PM hasn't arrived, can you send it again Kennas, thanks.


----------



## Ageo (28 January 2009)

kennas said:


> I've PM'd my bank details glenn.
> 
> Cheers!




how nice of you


----------



## Glen48 (28 January 2009)

This is most likely not the right place but I have a bloke form Japan so he claims and he wants me to send him $5K for option trading on Gold they have a web site NextFutures and he tells me it is controlled by the Jap security etc????
I get 2 calls a day wanting me to get going..... any ideas i smell a rat yet can't find any thing wrong and he knows his stuff.


----------



## Ageo (28 January 2009)

Glen48 said:


> This is most likely not the right place but I have a bloke form Japan so he claims and he wants me to send him $5K for option trading on Gold they have a web site NextFutures and he tells me it is controlled by the Jap security etc????
> I get 2 calls a day wanting me to get going..... any ideas i smell a rat yet can't find any thing wrong and he knows his stuff.




Tell him you will only send him 5k once 2 naked Jap women come over and give you a nice body massage 

smells like a rat mate


----------



## glenn_r (28 January 2009)

Well it looks like being a bank tart and opening up new accounts to get the honeymoon bonus interest rate looks like the best bet for the time being.


----------



## prawn_86 (28 January 2009)

You could give it to a struggling student to pay off his HECS... : (think of that warm fuzzy feeling you will get)


----------



## gfresh (28 January 2009)

It is an interesting question right about now.. next Tuesday will be even more interesting. Looks like even the best accounts will be paying under 4% before tax next week. 

Looks like the best option may actually be to invest it in something once again...


----------



## MrBurns (28 January 2009)

Glen48 said:


> This is most likely not the right place but I have a bloke form Japan so he claims and he wants me to send him $5K for option trading on Gold they have a web site NextFutures and he tells me it is controlled by the Jap security etc????
> I get 2 calls a day wanting me to get going..... any ideas i smell a rat yet can't find any thing wrong and he knows his stuff.





Ask him for $5k see how you go.
Dont even think about it. He calls you ? ask for his number so you can call him back then give it to the fed police, then get your number changed.

Or the best way to get rid of him is to tell him you're broke and can he lend you the $5k


----------



## MrBurns (28 January 2009)

gfresh said:


> It is an interesting question right about now.. next Tuesday will be even more interesting. Looks like even the best accounts will be paying under 4% before tax next week.
> 
> Looks like the best option may actually be to invest it in something once again...




I got 4.000 something % , I roll it over monthly in case I want to use it.


----------



## glenn_r (28 January 2009)

gfresh said:


> It is an interesting question right about now.. next Tuesday will be even more interesting. Looks like even the best accounts will be paying under 4% before tax next week.
> 
> Looks like the best option may actually be to invest it in something once again...




Yes, I'm quite interested to see the market sentiment after this current reporting period, the yield and franking credits on some of the blue chips are starting to look very attractive when compared to bank interest.


----------



## sinner (28 January 2009)

Get a bank account in Sth Africa. 30-90 day term deposits at 10% and same rate for most of their bank accounts.

http://www.standardbank.co.za/SBIC/Frontdoor_02_05/0,2358,3447_1091713_0,00.html

Check out the "Fixed Deposits" link.


----------



## MS+Tradesim (28 January 2009)

Glen48 said:


> This is most likely not the right place but I have a bloke form Japan so he claims and he wants me to send him $5K for option trading on Gold they have a web site NextFutures and he tells me it is controlled by the Jap security etc????
> I get 2 calls a day wanting me to get going..... any ideas i smell a rat yet can't find any thing wrong and he knows his stuff.




Glenn,

Sounds like they're targeting a few people. Tell them to **** off.

https://www.aussiestockforums.com/forums/showthread.php?p=391053#post391053


----------



## prawn_86 (28 January 2009)

sinner said:


> Get a bank account in Sth Africa. 30-90 day term deposits at 10% and same rate for most of their bank accounts.
> 
> http://www.standardbank.co.za/SBIC/Frontdoor_02_05/0,2358,3447_1091713_0,00.html
> 
> Check out the "Fixed Deposits" link.




What about the FX rate though? In theory the FX rate should take into account the interest differential between the two countries


----------



## nunthewiser (28 January 2009)

Thinks glen should play along a lil and get as many details he can ESPECIALLY a contact number .

post it all here and then perhaps we can have some fun with em in our spare time


----------



## MrBurns (28 January 2009)

sinner said:


> Get a bank account in Sth Africa. 30-90 day term deposits at 10% and same rate for most of their bank accounts.
> 
> http://www.standardbank.co.za/SBIC/Frontdoor_02_05/0,2358,3447_1091713_0,00.html
> 
> Check out the "Fixed Deposits" link.




Looks as solid as a rock, have you got money in there ?


----------



## prawn_86 (28 January 2009)

prawn_86 said:


> What about the FX rate though? In theory the FX rate should take into account the interest differential between the two countries




Also you should be able to open a Eurodollar (other currency) account here in Aus, and recieve the same rate through the major banks, but again its the FX rate that should make it not worthwhile in theory.

Otherwise technically what your are doing is a FX interest rate arbitrage trade


----------



## Trevor_S (28 January 2009)

MrBurns said:


> I got 4.000 something % , I roll it over monthly in case I want to use it.




I get 4.75% with Rabobanks cash management account account but as stated, it's only going to get less.  If capital preservation is a priority in the short term, or for those that rely on a fixed income from cash, things will only deterioate, I think there will be a 2 in front of the RBA cash rate sooner rather then later.

As Warren Buffett said recently



> Today people who hold cash equivalents feel comfortable. They shouldn’t. They have opted for a terrible long-term asset, one that pays virtually nothing and is certain to depreciate in value. Indeed, the policies that government will follow in its efforts to alleviate the current crisis will probably prove inflationary and therefore accelerate declines in the real value of cash accounts


----------



## MrBurns (28 January 2009)

> Today people who hold cash equivalents feel comfortable. They shouldn’t. They have opted for a terrible long-term asset, one that pays virtually nothing and is certain to depreciate in value. Indeed, the policies that government will follow in its efforts to alleviate the current crisis will probably prove inflationary and therefore accelerate declines in the real value of cash accounts




I agree with that but it's a matter of timing, dont want to wade into the market yet and it's also too soon for property.


----------



## nunthewiser (28 January 2009)

LOL i tell you what .i,d much rather be sitting on cash than warren buffets current losses from entrys recently 

lol blessim


----------



## nunthewiser (28 January 2009)

ps.NOT denying cash at present is a pretty crud long term investment , was merely pointing out that cash is showing a much better return than his recent publicised entrys


----------



## Trevor_S (28 January 2009)

nunthewiser said:


> LOL i tell you what .i,d much rather be sitting on cash than warren buffets current losses from entrys recently
> 
> lol blessim




riiiiiight... I can say one thing for certain, I would much rather have Warren Buffets assets then your cash.



nunthewiser said:


> ps.NOT denying cash at present is a pretty crud long term investment , was merely pointing out that cash is showing a much better return than his recent publicised entrys





riiiight.. lets come back in in 10 years and see how it's going with the cash investments vs his choices ?


----------



## nunthewiser (28 January 2009)

Trevor_S said:


> riiiiiight... I can say one thing for certain, I would much rather have Warren Buffets assets then your cash.
> 
> 
> 
> ...




um. Dear trevo...... my comments are based ON that article u posted AND are nothing to do with how big his or my wang is . ALSO darl my comments RELATE to the present 

now please dear , just because i have dissed your idols CURRENT losses when comparing to CURRENT cash rates , there is no need to get upset

merely pointing out that cash IS WAY outperforming his LATEST publicised investments

avaniceday


----------



## sinner (28 January 2009)

MrBurns said:


> Looks as solid as a rock, have you got money in there ?




Not sure if you are you being sarcastic? 

I have no cash in there, my strategy is a 1-1.5% gain on total capital monthly, i.e. 12-18% compounded yearly and I do this by splitting my capital into 0/low growth (gold, safety deposit boxes and buried in the backyard type deal), low growth (term deposits and standard cash in the bank) and high growth (stock and FX trading which have their own strategies).

Not sure about the FX arbitrage thing, but it makes sense I guess prawn_86. I remember reading an article about how Sth Africas inflation rate was being pushed up by ZAR/JPY carry traders but that was before the crunch when USD was trending down nicely against all currencies.

Still a bit groggy from last night so would appreciate some input from anyone who thinks this is or isnt possible (send a few 1000 lots to places like Turkey and Sth Africa, gain their interest and bank the profits in USD or gold).


----------



## Bill M (28 January 2009)

glenn_r said:


> I have a couple of term deposits rolling over next month and was wondering what other people are currently doing with their cash as the RBA is tipped to cut another 1% next week, bank interest is not very flash ?




I just took out a UBank Term deposit for 5.61% 3 Months. Next time I might not do that. An index fund like STW paying 10% looks pretty good right now, might go there next time.


----------



## Julia (28 January 2009)

glenn_r said:


> Yes, I'm quite interested to see the market sentiment after this current reporting period, the yield and franking credits on some of the blue chips are starting to look very attractive when compared to bank interest.



That's all very fine, but are the yield and franking credits going to outweigh any further likely loss in capital value? 
No one knows, but I'd certainly not be surprised if the banks encounter considerably more bad debts/write-offs.
And even with the banks, reduced dividends are not impossible.


----------



## Julia (28 January 2009)

MrBurns said:


> Ask him for $5k see how you go.
> Dont even think about it. He calls you ? ask for his number so you can call him back then give it to the fed police, then get your number changed.



Completely agree.  Don't touch it.


----------



## Bill M (28 January 2009)

Julia said:


> That's all very fine, but are the yield and franking credits going to outweigh any further likely loss in capital value?
> No one knows, but I'd certainly not be surprised if the banks encounter considerably more bad debts/write-offs.
> And even with the banks, reduced dividends are not impossible.



Yes that's right but even at half the current dividends it outperforms cash. Look at WES for example, they gave guidance of a probable 50% cut in dividends. At the subscription price of $13.70 for the rights issue it's still a divi of 7% fully franked, not bad if you can get it.


----------



## grace (28 January 2009)

Negotiated 5.7% for 4 months (two weeks ago)
Negotiated 5.25% for 7 months (last week)

Got a thankyou card from one bank, hand written for reinvesting funds.  That made me laugh.

For new accounts, one could do better though.


----------



## Gundini (29 January 2009)

These guys offer 5.85% if you are game!

http://www.arabbank.com.au/a-personal-loan/231


----------



## arco (29 January 2009)

Comparisons here.

http://www.interest.com.au/Investing/Term Deposits/index.htm


----------



## Sean K (29 January 2009)

glenn_r said:


> The PM hasn't arrived, can you send it again Kennas, thanks.



Must be a problem with the PM system. Have sent you my email address. Send me an email and then we can start swapping money. I guarantee -50% returns or cash back, with a set of butter knives. Plus, if you act fast, I'll throw in an ab cruncher that folds away into a sock draw. Deal of the century!


----------



## glenn_r (29 January 2009)

Kennas,

Thanks I have it now and if anyone wants the same returns his address is:

splash_the_cash@wanker_inc.com


----------



## nunthewiser (29 January 2009)

glenn_r said:


> Kennas,
> 
> Thanks I have it now and if anyone wants the same returns his address is:
> 
> splash_the_cash@wanker_inc.com




hahahahahahah now that was funny  cheers


----------



## MrBurns (29 January 2009)

glenn_r said:


> Kennas,
> 
> Thanks I have it now and if anyone wants the same returns his address is:
> 
> splash_the_cash@wanker_inc.com




Sprung


----------



## MR. (29 January 2009)

arco said:


> Comparisons here.
> 
> http://www.interest.com.au/Investing/Term Deposits/index.htm




Remember much better rates can be negotiated. Look to the special boards which banks offer, much better.  5%+ at the moment (most terms).

Question:
Has anyone actually questioned if there is any fine print available as to regards to the "Government Guarantee" Bank deposits.  
Its up to $1 million per person.  That's all I know.  

Does anyone have any further details?  

Bank deposits should be as safe as Government bonds!  Except if the Bank closes I don't know how depositors get their money back via the government?  (We will pay you $1- per week??????) Bonds will be paid back from the Government when mature no questions need to be asked.


----------



## MrBurns (29 January 2009)

MR. said:


> Remember much better rates can be negotiated. Look to the special boards which banks offer, much better.  5%+ at the moment (most terms).
> 
> Question:
> Has anyone actually questioned if there is any fine print available as to regards to the "Government Guarantee" Bank deposits.
> ...




.7% insurance for anything over $1M

How will you get it back ?

I have my doubts on that perhaps $1 per week will be it, in which case KRudd would be in more danger of assassination than Obama.


----------

