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-1
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avatar+79 

Really need help!

Option 1 or 2? Its a simple question but my brain isn't working so I can't figure it out :(

 

The Question:

If I have $60,000 in savings currently nd plan to save $1,000 per fortnight, which is the best account for me?

 

 

Option 1:

My current savings account is a special savings account. It has a basic interest rate of 0. 1% but if you deposit more than $1,000 in a month and have no withdrawals, then you get bonus interest of 1.8 5% for a total of 1.95% p.a. (Interest is calculated daily.) 

 

Option 2:

The bank just emailed me asking if I am interested in a new BONUS SAVER Account that they are trialing to special customers. It has a bonus rate of 2.5% p.a. on all new deposits for the first 4 months and then the interest rate drops down to 1.0% p.a.

However, all interest on new deposits will still be at the BONUS RATE of 2.5% (for 4 months).

 May 5, 2020
 #1
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0

You can only determine which option is "best" if you specify the term of the investment. In other words, how long do you intend to invest your money for. 1 Year? 5 years? 10 years?.....etc., since you have a large up-front deposit of $60,000.

 May 5, 2020
 #2
avatar+79 
+2

Assume that its for 10 years

MathsLlama  May 6, 2020
edited by MathsLlama  May 6, 2020
 #3
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Do you understand the problem? And if so, how much work have you done on it?

Guest May 6, 2020
 #4
avatar+79 
+2

I dont understand how to do it.

I only need the answer but working out would be amazing as well

 May 6, 2020
 #5
avatar+1458 
+4

Go to your newer post. I have answered the question there.

 

Also just curious what is this answer for?

hugomimihu  May 6, 2020
 #7
avatar+79 
+2

Just a random maths question...

I was bored and wanted help understanding a future topic.

MathsLlama  May 8, 2020
 #6
avatar+109486 
0

Hi Hugo,

Do not worry this time but in the future, if you can find it easily, please add the address of the alternate post. (In a link)

 

This is more for the benefit of other users than it is for the asker of the question.

 

Thanks.

 May 6, 2020

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