- Oct 6, 2011
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I get what your coming from. Dont want to tie funds up too long over the course of a month, year. I think you have to definitely factor into account the old finance saying 'time is money'.Back in the first decade of this century I used to see these opportunities a bit - in the end many of them actually paid out less than a term deposit would. You'll probably start seeing them more now that interest rates are rising.
Roughly speaking this instance gives you a 8% p.a return after six months which I don't think you'll beat with any term deposits out there. But if you don't have a lot of spare money and inflation continues as is predicted then when you collect it may have less purchasing power than it does now. That's the only risk you have to assess.