Recent market volatility, understandably, raises many questions for those wondering about the best and most appropriate ways to invest their hard earned savings. What should you consider when looking at savings and deposit accounts and how can they earn you a competitive rate, regardless of the stage you are at in your career.
According to my colleague, Peter Munckton, who is Chief Economist at Bank of Queensland, in any investor’s diversified portfolio, safe and stable asset classes will be a component, no matter what is happening in the economy. However, Peter says, “it is hard to ignore the waves of volatility hitting the Australian domestic markets this year because of uncertainty about the Chinese economy and the potential impact of higher US interest rates. Financial market volatility is likely to be a feature for some time, and will play a key role in how Australians assess their risk profile and allocate their savings”.
For busy medical professionals looking at a dependable yield from their income, a deposit account can be a good option to consider. With different product types available, including short and long-term options with varying features and benefits, it’s important to make a choice that works for you and your money.
Consider the Options Available
Before choosing any deposit account, it’s important to understand what types of products are available in the market. Different products have varying features, including level of access to your funds and differing interest rates.
it is hard to ignore the waves of volatility hitting the Australian domestic markets this year because of uncertainty about the Chinese economy…
It’s also important to understand how transactional everyday accounts compare to savings and deposit accounts. Typically, no single product will meet all of your personal financial needs. Finding the right combination of the transactional and savings accounts for your circumstances can ensure your money is working its hardest for you.
On your hunt for the right account, it’s important to seek a good, fair and competitive deal that’s meets your specific needs. Considerable time and effort can be spent on researching where to put your savings and contemplating that process can be off-putting for time-poor professionals.
Tailored, Long-term View
It’s easy to be tempted by introductory and headline interest rates but they may not give you the best outcome when it comes to the long term. Many clients find that a term deposit is an effective means of locking in an interest rate for a period of time that suits their circumstance. BOQ Specialist’s term deposits have consistently competitive rates which range from 30 days to five years, so you can choose to lock in the best interest rate for your cash flow requirements. Terms can also be tailored individually to suit your needs.
Flexibility to Manage Cash-flow
Cash-flow fluctuations are part and parcel of running your own practice so having a certain amount of flexibility can go a long way in helping to ease the pressure. An optional overdraft facility,* such as the one offered as part of BOQ Specialist’s everyday bank account, the One Account, allows you to be flexible with your finances and manage your business cash flow cycle effectively. The One Account also pays a competitive interest rate on your everyday credit balance with no ongoing account keeping or monthly fees, allowing you to make the most out of your everyday banking.
Investing in new technology or equipment may help you to improve the efficiency or the service offering of your practice. With many suppliers based overseas, as a medical practitioner you might be making multiple international purchases each year. BOQ Specialist’s foreign currency solutions give you the ability to hold funds and earn competitive market rates for most major currencies. In addition, whether it be for business or leisure, foreign currency exchange and transfer services are available, making converting and transferring currency overseas quick and easy.
Plan for Retirement
It’s never too early to start planning for your retirement. When making financial plans for your future and retirement, asset allocation and diversification are fundamental. Deposits can help you grow your retirement funds while giving you access to suit your needs. The BOQ Specialist financial specialists have a wealth of experience working with Self-managed Super Funds (SMSFs) and can help you choose the right products to maximise your savings.
Talk to a Finance Specialist
Whether you are a graduate, a newly qualified professional or a consultant looking to build your retirement nest egg, we know that you wear many hats. Managing finances in silos and separating your business and personal affairs is not only time consuming, it can mean missing out on the most competitive options. BOQ Specialist’s range of everyday banking, savings and deposit accounts cater for both your personal needs and those of your practice, no matter the stage of your career.
BOQ Specialist’s financial specialists have a wealth of experience working with medical professionals over the past 25 years. To understand how BOQ Specialist can help you manage your savings, speak to one of their specialists on 1300 131 141 or visit boqspecialist.com.au
Shehan Rajakumar is the Head of Deposits at BOQ Specialists – a division of Bank of Queensland.
The opinions expressed in this article do not necessarily reflect the opinion of Toma Publishing and its subsidiaries.
The credit provider is BOQ Specialist – a division of Bank of Queensland Limited ABN 32 009 656 740 AFSL and Australian credit licence no. 244616 (“BOQ Specialist”). Terms and conditions, fees and charges and lending and eligibility criteria apply.
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*Not available for Self-Managed Super Funds.