Tag: cash account

At this time and age, all households will have some kind of cash investment. After all, each time someone deposits money in a bank account, he is investing in his money. According to the Australian Securities and Investment Commission (ASIC), opening and saving money in a bank account is an investment in which the depositor is lending his money in return for payment of interest. The depositor is essentially the money lender which charges the borrower (the bank in this instance) an interest rate. It is just like a bank lending money for people to buy property, cars and other expenses. The difference is that the roles are reversed. Often, families who invest their cash or lend their money for a longer period of time or who face more investment risk will enjoy a higher rate of inter...