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BENEFITS OF BANK BILLS With Money Market Online you can access short-term money market instruments such as bank bills and earn high interest rates. Money market interest rates have traditionally only been available to banks and other financial institutions who participate directly in the Australian short-term money market. With Money Market Online, you pay our online brokerage rates and earn money market interest rates on bank bills. Although interest rates quoted on the money market move up and down because of changing market conditions, once you purchase a bank bill, the interest rate is fixed until maturity. MINIMUM INVESTMENT Bank bill investments have traditionally been available to people wishing to invest fairly large amounts of money. With Money Market Online, you can invest as little as $10,000 and still get money market interest rates. You get the same rate of interest for a $10,000 investment as you would for a $100,000 investment. TERMS Bank bills are a short-term, liquid investment. You can choose to invest in bank bills with initial investment terms of between 90 and 180 days, and you can also sell your bank bill prior to maturity. A SAFE INVESTMENT The Commonwealth Bank of Australia undertakes to repay the face value of the bank bill on maturity. DIVERSIFICATION Diversification involves spreading funds amongst different asset classes to manage the impact of changing market conditions on your other investments. Investing in short term securities which offer fixed income, such as bank bills, is one of many options available to diversify your portfolio. And if you are waiting for the right time to invest in the sharemarket, you can invest your surplus cash in bank bills to maximise short-term returns and preserve your capital. SALE PRIOR TO MATURITY If you have invested in a bank bill but later decide to sell before maturity, you can sell it through us. We will arrange your sale at the money market interest rate prevailing when you place your order with us. The money you get back may be more or less than the amount you paid for the investment. You also incur online brokerage fees if you sell a bank bill prior to its maturity date. ONLINE BROKERAGE When you first invest, reinvest or sell a bank bill through Money Market Online you pay Commonwealth Securities' low online brokerage rates. |
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