August 2001 Volume 82 Number 8 "serving the protectors"

Are you trying to save up for something but having trouble not spending the money? Sometimes putting the funds out of reach and daily temptation is the most effective way to your goals. Term deposits are an attractive option for investors looking for a stable and sensible way of investing their funds.

Term deposits should be considered by those looking for a secure way of investing their money for periods of as short as one month to as long as two years.

Many people ask how they can generate a reasonable return without putting their savings at risk? While the share market and other forms of investment, such as property, may offer higher returns, they are also subject to fluctuations. To play the share market, investors must be prepared to accept that while higher profits can be expected, large losses are just as likely. Over a long period, profits and losses will balance out, but this strategy is not usually the best course of action if you are looking for short-term results. You may end up with less than you started with.

Term deposits encourage disciplined savings, with funds invested safely for a fixed period, and ensure that the original funds invested are returned with interest. Police Credit Union has a variety of term deposit accounts.

For members who wish to access their savings earlier than a term deposit account allows, a seven-day call account may be a suitable option. “Notice of withdrawal” accounts attract higher interest rates than “at call” savings accounts, but you do need to advise the Credit Union seven days in advance if you want to withdraw your savings. Because the money is not so readily accessed, you will be more inclined to save.

A Christmas club account is another good way of using restricted access to help you save for a specific purpose. While the funds are “at call”, there are penalties for making a withdrawal between February and October, encouraging you to save.

If you are not sure about what would be the best option for you, simply call into a Police Credit Union branch and ask the friendly staff to assist you, or call 131 844

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