# Where to Park Funds between trades?



## JJZ (8 April 2016)

What are people doing with funds between trades or set aside for drawdowns etc?

Do you just park it in a high interest bank account? 

Do you just leave it in your brokers account? Leaving it with Commsec with earn me about 0.5%PA...

thanks
JJZ


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## pixel (8 April 2016)

JJZ said:


> What are people doing with funds between trades or set aside for drawdowns etc?
> 
> Do you just park it in a high interest bank account?
> 
> ...




There are better options than Commsuck.
If you qualify as a "frequent trader", Westpac will pay interest above RBA cash rate. And their interpretation of "frequent" cuts in at 3 trades in a calendar month. That's my main "parking lot".
Another option is a Macquarie CMA, which offers also around RBA cash rate.


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## So_Cynical (8 April 2016)

HSBC flexi saver 2% instant transfer from my HSBC settlement account.


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## galumay (8 April 2016)

I park mine in UBank, I dont think it makes a lot of difference as the interest rates are so low these days!


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## pixel (8 April 2016)

galumay said:


> I park mine in UBank, I dont think it makes a lot of difference as the interest rates are so low these days!




To me it does make a difference.
As a long-only trader, there are periods, especially in a drawn-out falling market, when I'm 30-50% in cash.


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## galumay (8 April 2016)

pixel said:


> To me it does make a difference.




You are correct, of course, and it makes a difference for everyone. It was a poor choice of words on my part. 

What i should have said is that there is currently very little difference between the 2 or 3 banks that offer the best rates, I dont think its worth moving money around between them - as long as you are in one of the better ones. I seem to remember ING are one along with UBank, MEBank and RAMS. 

I think UBank are still the best rate versus flexibility and lack of qualifying conditions.


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## Muschu (8 April 2016)

We are in the pension phase of a SMSF and keep about 30% in cash, which is within the SF.  I like that to be very accessible and keep it in an ANZ Negotiator Account - which pays an interest rate a little below that of a TD.
There are probably better methods....

 I'm a bit lazy around this but feel I already give $$ too much time.... And we are definitely not super wealthy, but have enough hard earned from a long career to be ok.

Currently on a brief holiday in the Philippines and surrounded by a level of poverty that I find very disturbing.... One thing / value that I hope we have passed on to our own kids is the importance of helping others - something which can done in so many ways.

I don't see the point in accumulating wealth unless it is accompanied by using it as a privileged opportunity to "give back"... 

Sorry for rambling....


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## hamli (9 April 2016)

pixel said:


> To me it does make a difference.
> As a long-only trader, there are periods, especially in a drawn-out falling market, when I'm 30-50% in cash.




90% of time I'm 50-75% in cash. I leave it in IB... having the money available at a seconds notice is more important to me than a few extra % in interest per year.


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## pixel (9 April 2016)

hamli said:


> 90% of time I'm 50-75% in cash. I leave it in IB... having the money available at a seconds notice is more important to me than a few extra % in interest per year.



That's no problem for me either. I can withdraw any amount any time by cheque or online.
Neither Westpac nor Macquarie CMAs impose any access restrictions, apart from daily online limits I have set myself for security reasons.


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## So_Cynical (9 April 2016)

hamli said:


> 90% of time I'm 50-75% in cash. I leave it in IB... having the money available at a seconds notice is more important to me than a few extra % in interest per year.




Same with my IB account, plus its a slight pain in the ass to withdraw and deposit so i just leave it there.


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## Trendnomics (10 April 2016)

I'm surprised no-one has mentioned: 

http://www.betashares.com.au/products/name/australian-high-interest-cash-etf/#each-overview

Currently paying 2.5% p.a., easy to trade in and out of, and pays distributions daily.


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## So_Cynical (11 April 2016)

Trendnomics said:


> I'm surprised no-one has mentioned:
> 
> http://www.betashares.com.au/products/name/australian-high-interest-cash-etf/#each-overview
> 
> Currently paying 2.5% p.a., easy to trade in and out of, and pays distributions daily.




Wow i had no idea, brilliant - pays distributions monthly.


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## Bill M (11 April 2016)

Trendnomics said:


> I'm surprised no-one has mentioned:
> 
> http://www.betashares.com.au/products/name/australian-high-interest-cash-etf/#each-overview
> 
> Currently paying 2.5% p.a., easy to trade in and out of, and pays distributions daily.




When you factor in the cost of the buy and sell brokerage it just isn't worth it. (In my case $20 in and $20 out)

I use the ING Savings Maximiser. It pays me 3.5% for my at call cash funds. When I place a buy order I simply go online and transfer funds from ING to my broker, next day it is in there ready to pay for the trade.


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## So_Cynical (11 April 2016)

Bill M said:


> When you factor in the cost of the buy and sell brokerage it just isn't worth it. (In my case $20 in and $20 out)




I've had 7K sitting in my IB account for 2 months getting next to nothing interest..perfect for that with $6 each way.

Edit - $12 bucks in interest per month...covers the account activity fee.


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