Case study short-term saving

Gayle wants easy access to her cash

daughter with mother and fatherGayle'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 $350,000.

Gayle wants to save a big deposit so she will have a smaller mortgage.

'I want to save at least $40,000, but $70,000 would be better,' says Gayle.

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 money.'

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Last updated: 07 Sep 2017