Case study short-term saving
Gayle wants easy access to her cash
Gayle's investment goal is to buy an apartment
within 3 years. She has moved back in with her parents and is
saving as much as she possibly can towards a deposit.
Gayle mentioned to a workmate that she has already saved over
$20,000. She is looking for a one-bedroom apartment for around
Gayle wants to save a big deposit so she will have a smaller
'I want to save at least $40,000, but $70,000 would be better,'
Gayle says she can achieve her goal comfortably by keeping her
money in a savings account earning 3% interest.
'I am already keeping an eye out for properties. It's important
to me that I can withdraw my money immediately, if the right
apartment comes up for sale. It might happen this year; or it might
not happen for a year or two.'
Her workmate doesn't understand why she doesn't try to
fast-track things by investing the money in the share market. But
Gayle knows a savings account fits her needs best.
'On any given day I know exactly how much I have in my account.
I wouldn't have that certainty if I invested the money in shares.
Shares are volatile and could go down just when I need the
Last updated: 07 Sep 2017