Skip to main content

$500 in 5 minutes (here's how)

A 5m 19s phone call to my bank earnt me an extra $497.73

A 5m 19s phone call to my bank earnt me an extra $497.73

Term deposits can be a good way to save. They often pay more than saving accounts if you are able, and willing, to lock away money for a fixed amount of time.

Specials

Most banks will have a 'special offer' on one of their term deposit rates. For example the 7-month term deposit might have a far better rate than most other lengths. Seems like a good deal.

The Catch

At the end of 7 months the default option is to re-invest for another 7 months. But hang on - what if the 7 months rate is now terrible and the 9 months rate is really good? Doesn't matter. The default will be to invest for 7 months at the new terrible rate.

It's a bit like the lazy tax I mentioned before.

Big money for little work

When your term deposit comes due, take notice. Check out the interest rates for different term lengths - if term deposits are still your preferred option. A branch visit or a phone call is enough to switch you to the term deposit length that now has the best deal.

At the moment the difference can be as much as 0.65% - even just between a 5 and 7 month term. If you've got $40,000 saved, that's an easy $260 difference each year.

After my phone call I'll now make an extra $497.73 this year.

Why I'm talking finance

Money is the key to living a simpler more meaningful life. Working part-time I've had so many people say they wish they could do the same but can't afford it.

Smarter spending and investing wisely can give you freedom and options. You can choose a job you love rather be forced into one for money. You can find yourself out of work for a while and still be OK. If you want to retire earlier than the government pension age you can do so. If you want to work part-time or have time off between jobs you can do that too.

That's why I'm doing a few finance-related posts this year. Subscribe at the top of the page to be alerted to new posts.

Comments

Popular posts from this blog

My October challenge

Decluttering can be overwhelming. I've been stuck. Shelves and boxes and drawers full of stuff I should go through but not sure where to start. Aaagh - there's so much of it. The solution? So for myself (and for you if you want) I've developed a strategy. I've picked 31 categories in advance. I plan to tackle one item per day of October. If I miss a few that's OK. The point is to overcome overwhelm. To focus on one thing at a time. To move forward instead of being stuck. My favourite way to declutter is to sell online . (I even wrote a  free ebook of tips for selling online). I also like to recycle or upcycle things. Wanna join in? I've chosen categories where I think most people would have excess. If there's a category you have already dealt with, that's cool. Have a rest day - or go even further in one of the previous areas. The list Ok so here's my plan for this October. Bookmark this post or download the picture of my notes. For each category I ...

The Latte Factor

For the first time ever I'm reviewing a novel. Latte Factor is a short story  - around 120 pages - and is equal parts of inspirational story and financial education. The combination of the two is quite rare, and done quite nicely. The story is about Zoey Daniels, associate editor for a travel magazine. Although she's never been outside the USA  - "a travel editor who's never travelled". She struggles with money and is considering a higher-paying job at the company her friend Jessica works for. The job would provide more income, but would also be more stressful and demanding. She already has a nightmare about being on an increasingly-fast treadmill that she struggles to stay on. Her current boss Barbara - aware only of the money situation - suggests she talk to Henry at the coffee shop. This peculiar suggestion is where Zoey's life begins to turn a corner. Spoiler Alert Being a book of fiction, I don't want to spoil the story for you. It's a book you ca...

Less Clutter More Cash - now available

Do you feel like you have too much stuff? Is your home full of things you never use? Would you like to swap them for cash? We did My wife and I have sold more than 550 items online as we downsize and we've learnt a bit along the way. I've put some of our best tips into this handy ebook. I hope you can use these tips so you too can have less clutter and more cash. Enter your email address below to receive the book for free. Less Clutter More Cash Get my new ebook for free. PS. This will subscribe to the But Wait There's Less email list, so you'll know when the new updated version of the book is available. You can unsubscribe at any time.