Higher rate for savings

QI am on a pensioner income together with my wife, 73 years old, and lost my super and savings in my last divorce. I used to have an industrial electronics company and my ex was also a director and therefore I lost more than half.

With the rest I paid off my house in Melbourne, where I live now with my new wife. I don’t owe any money. We live now on a pension and my only savings are a bit over $100,000, which I have with ING at a rate of 1.35% (which just changed down from 1.5%). Is there a better way to earn more interest but still have access if needed?

I am sure you have heard this question many times before but it would be nice to go back to 3.5% or more, as it used to be. I would very much appreciate your help – I do not trust anybody else who claims to be a financial expert. I don’t want to lose my leftover savings.

Thanks for getting in touch, Hans. I am sorry to hear about your lack of trust in financial experts. I do know there has been a lot of bad publicity lately but these days the vast majority of advisers are very well educated and trustworthy. They are also highly regulated.

However, I am happy to give you my opinion. ING has a range of term deposits. As I write this it is offering 2.7% for one year. I have had a look at what else is available and 2.7% is a good rate.

My suggestion would be to keep an amount at the 1.35%, which would cover any emergencies for a year, and invest the balance at 2.7%

I know it is not a big return but a term deposit is very safe. Up to $250,000 is guaranteed by the federal government. Also, 2.7% is double the 1.35% you are getting now.

My best wishes to you and your wife.