Q: When I turned 65-and-a-half I applied for and received a part-Age pension. Soon after, I received an inheritance of $350,000 and my part-pension was immediately cancelled. I was able to put $100,000 of my inheritance into my superannuation account, and when the other $250,000 became available, I deposited it into a bank account earning approximately 2.65 per cent interest (the interest rate is less now).
I need the money to be at-call because I am looking to sell my home and buy a newer home when I find the right one. But I have been looking for nearly two years without finding anything that suits me and my concern is that I am losing money on the inheritance the way I have it currently held.
Do you have any suggestions what I can do with the inheritance to earn more while I am waiting for my dream home to come along?
A: You should never invest in growth investments like property or shares unless you have at least a seven-year timeframe in mind. This will give you time to write out the inevitable downturns. The reality is that for a term like two or three years, the only safe option is money in the bank. I suggest you shop around – there are some good deals going about right now.
To find all the interest rates on savings accounts in one place, Starts at 60 has gathered those of the big four banks and some neo-banks here.
IMPORTANT LEGAL INFO This article is of a general nature and FYI only, because it doesn’t take into account your financial or legal situation, objectives or needs. That means it’s not financial product or legal advice and shouldn’t be relied upon as if it is. Before making a financial or legal decision, you should work out if the info is appropriate for your situation and get independent, licensed financial services or legal advice.
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