Finance & Fury Podcast

Welcome to Finance and Fury – For this week’s episode we are answering a question from listener David – surrounding some options to save for a home deposit “The conventional wisdom is to save for, say, a home deposit in a bank account with as high as possible interest rate. However, recently it seems house prices are rising quicker than I can save, and interest rates are lower than CPI. If my goal is to have a sufficient deposit in ~3 years’ time, what are your thoughts in keeping savings in a conservative (or even higher risk?) mutual fund instead? Wouldn't a low-risk fund be less risky than cash during an inflationary period?” This is a great question – and brings up an important point – is the long term conventional wisdom on saving for a home deposit in cash no longer wisdom but a horrible idea? Especially in the current economic environment where your cash savings are earning a negative return in real terms when accounting for inflation – so let’s have a look at this and look at some alternatives Histor