Really need help!
Option 1 or 2? Its a simple question but my brain isn't working so I can't figure it out :(
If I have $60,000 in savings currently nd plan to save $1,000 per fortnight, which is the best account for me?
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.)
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).
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.
I dont understand how to do it.
I only need the answer but working out would be amazing as well