Savings is the amount left after consumer spending is subtracted from the amount of disposable income you earned in a given period of time.
As long as you’re in the right fund, it’s possible to get better returns from your savings. The bigger your deposit or the longer you tie your money up for, the higher return you usually get.
Aside from earning interest by switching to a short term deposit or an online only account, there are other options to do this.
If you don’t make withdrawals, these accounts pay a monthly bonus or offer prizes, although the base interest rate is low.
There are certain conditions to qualify for the monthly bonus:
- don’t make withdrawals in a given month
- the balance should grow by a set amount every month, like $50.
Although still a few do, banks now offer notice saver accounts. Notice saver often beats term deposits when it comes to interest rates.
Notice savers don’t have fixed end dates if you want to reinvest, just give notice when you need the money. Depending on your account, the notice periods are usually 30 days or 90 days. Another benefit is you can top them up when you have the funds.
Smaller banks & credit unions
Some overseas banks have the same credit rating and offer good rates as Kiwibank. As not-for-profit financial institutions, credit unions support customers and communities.
Managed funds — get more returns from your savings
Under managed funds, your money is spread across low-risk investments. You can get more returns from your savings under a managed fund than a term deposit after fees. Also, the money can be withdrawn quickly.
You can ladder if you have larger deposits but don’t want your money tied up indefinitely in your term deposits.
Laddering can be an investing strategy to produce steady cashflow by planning investments, or create liquidity.
Superannuation — get better returns from your savings
Your superannuation starts building up when you start earning from work. A super may last 20 years or more when an individual retires, it may even outlive you.
The money that you’ve deposited into your superannuation fund can be invested on your behalf by a trustee. These investments can be made into assets like cash deposits, property or shares which depend on your chosen option. As your investments generate returns so is your super balance.
Review your savings regularly, shop around, move your money as interest rates rise and fall, and reinvest.
Use the ASAG Reverse Mortgage to top up your super
At ASAG, we support our Australian customers, who are about to enter retirement or already in retirement, by offering our equity release solutions to help boost their standard of living. One in particular is our reverse mortgage.
The purpose of acquiring the ASAG Reverse Mortgage is to improve your retirement income stream. It allows you to access the wealth in your home without ongoing payments and having to sell your property. The loan is paid off when you permanently leave your home, either you: downsize, move to residential care, or pass away. The funds you receive can be used as you see fit, which may include maximising your super contributions and other objectives in your Retirement Planning.
Our team at ASAG can assist you with all the details that you have to know on how the loan works. Our lines are open on 1300 002 724 and at email@example.com so you can contact us or send your enquiries about our equity release solutions.
You can also get started by using our free tool below to assess your available equity.