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Banking and Investment is about getting the best return on your money, with acceptable risk, whilst taking into consideration the need for ready access to your money.

Investment Return and Risk.

 As a general rule the Interest Rate return on your money is directly related to risk involved. If an investment offers a high rate of return you should expect a higher risk. Most very secure bank accounts only offer low interest rates (don't be surprised to see 0.1%). Some business offer High Risk and High yield investments. (usually referred to as the Junk Bond Market). Article on Junk Bonds says "Historically, average yields on junk bonds have been 4-6% above those for comparable U.S. Treasuries." In Australia the interest rate return on Investments is still loosely related to the the official Reserve Bank Rate. Many countries, including the US, have official interest rates that are so close to 0% that there is no longer any connection between loan rates and the official rate.

Transfers and Cheque Clearance Times.

 It is well known that the major Banks are very profitable. It is a common complaint that the Banks charge fees that are too high for transfers, and that some activities that should be instant by definition take several days. If you do want a quick 'cheque clearance' they even have the audacity to charge are for Express Clearance.

Access to your money.

 As a general rule the yield on your money is also related to Investment Term. In general, the longer you are willing to invest your money - the higher will be the yield. This may not apply if the bank's Interest Rate is expected to fall during the term of the investment.

Internet and Telephone Only Accounts.

  In recent years a number of less familiar banks have introduced Internet (or Telephone) Only Banking. In most cases these banks do not have a 'bricks and mortar' presence at all. Ing Direct is one of the better known of these. In most cases they need to link the account to some other Bank Account and transfer the funds to and from there high yield accounts.

What appears to be a good site for Interest Rate comparison; although some linked inserts don't seem to work properly. The figures may need to be checked using the individual bank sites listed below. - Rate Comparison Site:

List of Australian Owned Banks on Wikipedia:

Main Banks -   Browse these links.

Primarily Online Banks (usually foreign owned)

Latest Version 09-MAY-2014 09:26 PM.

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