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Written by Matt Kirk Published: August 21 2020 Innovation
Digital Empowerment of Savers
Imagine facing fifteen percent mortgage rates.
Home loan borrowers faced just that in the eighties.
This generation faces a different challenge; the prospect of historically low interest rates alongside record high housing prices. Saving can appear to be a daunting task with the condition threatening to become the norm. Fortunately, this generation is well equipped like no other with Fintech and smart digital tools.
Financial Market Fear
Consider the various ways an investor can save.
Those who require capital certainty might be most concerned with the prevailing conditions.
Stock markets are not predictable according to one school of thought (1). Others postulate low risk opportunities exist but they are situational, fleeting, and out of the reach of the majority of investors (2). While the matter is unresolved, the 2008 stock market crash acts as a reminder of the need to protect our money.
Capital in term deposits was unaffected when the ASX200 plunged in the vicinity of 35% in the 83 days leading up to the 20th of November 2008.
Australian bank term deposits are amongst the safest investments in the world.
Alas, the rate of return available on safer assets reflects the higher security, but smart investors can potentially etch out up to an extra 0.80% per annum in bank deposits by using digital Fintech technology.
Keep some of your money safe at all times
Conventional wisdom suggests it is prudent to secure part of your wealth in bank deposits, for they provide capital certainty and predictable liquidity.
This is especially true if the savings must be kept safe for a specific purpose.
Few investments are safer than Australian bank term deposits.
Control Your Money
Imagine being equipped with money management tools that were until recently only available to treasurers of large corporations.
Better still, imagine moving your money from bank to bank at will to the most attractive deposit using your smart phone or other hand held device. Visiting each bank’s branch is no longer necessary, nor is there the need to complete multiple sets of FTRA (3) identity checks each time you transact with a new bank.
Moving your money to the most favourable deposit can be done in seconds with a few flicks of your thumb. It’s so easy.
The New 101 of Money Management
Earning the highest interest rate possible is crucial with today’s low interest rates.
Fintech is the solution.
Digital tools are the new 101 of money management although we must always undertake robust due diligence before committing funds.
Finding the right digital tools can make growing your wealth easier.
A tool like Cashwerkz can help you reach your savings goals faster, by keeping your savings safe while earning interest.