Regardless of your investment horizon, investment goals, and risk profile, it is always advisable to have a liquid cash deposit management strategy. It is a wise choice to budget for a space in your investment portfolio for liquidity and physical cash that is available at short notice, or within a specifically acceptable time frame to adjust to your ever-changing needs and circumstances.
With effective cash deposit management, you can earn interest against cash that is otherwise lying dormant in a standard savings account. The returns on this cash will vary significantly over different time frames and depending on where the money is invested. Our skilled professionals at Efficient Wealth place emphasis on this to ensure that the liquid funds invested on your behalf achieve optimal returns.
4 Types of Cash Deposit Management Options Available to You
Returns are based on how long you decide to invest your liquid cash. But what types of cash-management options can you choose from and how does each one affect your financial growth?
- Call Deposits: Call deposits are a type of short-term investment that facilitates flexible cash deposit management. Unlike fixed- or longer-term investments of your savings and liquid cash, these accounts have neither a fixed maturity date (the date when the funds can be released back to you), nor a fixed interest rate. The rate of earnings will vary depending on the market environment at any given time.
- Term Deposit Accounts: This is a wise way to earn high interest rates. With these accounts, you invest an amount of money for an agreed period. You will not be able to withdraw this cash for the duration of the term, but you will get a guaranteed interest rate for having invested your money. You will, therefore, know exactly what the return on your money will be. One of the biggest benefits of a term deposit is that your money is locked away so you cannot be tempted to use your savings on unnecessary impulse purchases.
- Fixed Deposit Accounts: These types of deposit accounts are high-interest-bearing and usually have the option of a premature withdrawal that enables the account holder to close the account before the maturity date.. However, the holder will have to pay penalties if money is withdrawn before the maturity date. Compared with savings and current accounts, fixed deposit accounts are offered to give people the opportunity to invest their savings at higher interest rates through a forced savings vehicle.
- 32-Day Call Accounts: These are safe accounts in which to invest your savings. They are high-interest-bearing accounts. As the name suggests, once your money is invested, you will need to give 32 days’ notice if you want to withdraw your money. There are also penalties to withdraw this money before the maturity date.
Where to Turn for Effective, Efficient Investment-Management Solutions
At Efficient Wealth, we provide you with a tailored solution that will cater to your specific liquidity and cash-management needs. Above and beyond our financial planning, investment management, portfolio management, and stockbroking services, our cash deposit management offerings include:
- Money market
- Call deposits
- Term deposits
- Fixed deposits
- 32-day notice deposits
If you would like to investigate the best options for your money, consider contacting the qualified experts at Efficient Wealth. Money management is what we do!