Task 1 Thuy Anh

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Do Truong Thuy Anh Accounting Task 1 17/4/2009

SAI GON INTERNATIONALCOLLEGE

YEAR 11- ACCOUNTINGASSESSMENT TASK 1- UNIT 1A

- 1 -Do Truong Thuy Anh-11D

Submission

Date: 17th

April,

To: Ms. Liz


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CONTENTS PAGE

Introduction............................................................................................................Page 3

Investigation...........................................................................................................Page 4

To Do List..................................................................................................Page 4

Mapping.....................................................................................................Page 5-7

ANZ Bank......................................................................................Page 5

Queensland Bank...........................................................................Page 5

Share..............................................................................................Page 6

Property..........................................................................................Page 6

Alternative Choice.........................................................................Page 7

Resources...................................................................................................Page 7

Explanation............................................................................................................Page 8

Term Deposit.............................................................................................Page 8

Share..........................................................................................................Page 8

Property......................................................................................................Page 8

Profitability............................................................................................................Page 8

ANZ Bank..................................................................................................Page 8

Queensland Bank.......................................................................................Page 8

Share..........................................................................................................Page 8

Property......................................................................................................Page 8

Advantages and Disadvantages..............................................................................Page 9

ANZ Bank..................................................................................................Page 9

Queensland Bank.......................................................................................Page 9

Share..........................................................................................................Page 9-10

Property......................................................................................................Page 10

Security..................................................................................................................Page 10

Time Frame............................................................................................................Page 10-11

Comparison............................................................................................................Page 11

ANZ and Queensland Bank.......................................................................Page 11-12

ANZ Bank, Share and Property.................................................................Page 12

Choice....................................................................................................................Page 13

Alternative Choice.................................................................................................Page 13

Taxation Requirement............................................................................................Page 14

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Conclusion.............................................................................................................Page 14

Introduction

If you have a lot of money, what do you want to use for. In my opinion, you will spend all

of them if you dont find something to invest. Is it correct? And me, too. I have $200,000 and

I will investment for something to receive the profit. So I need to know more about the

investment to invest efficiently.

I have two ways to invest, first way I will invest $50,000 by myself, second way I and my

brothers invest $200,000 together and then we will share the profit. I chose invest $200,000

because the amount of money invested is higher that will receive the higher interest. So I will

have more profit although I have divided to my brothers.

In this report, I want to introduce for you some different forms of investment. I will

explain by defining, give example, advantages and disadvantages of some of them. Moreover,

I use chart to show the interest that make sure I choose the best investment for my account.

ANZ Bank

Queensland Bank

Share

Property

Alternative Choice

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REPORTI) Investigation:To Do List:Research Investigate:

Two banks:

Term Deposits- Charges- Profitability- Security- Advantages and disadvantages

Shares

Property

Taxation Requirement for: (from ATO)

Shares

Property

Compare 2 banks

Compare 6-60 months

Chart/ Data Excel

Choose a bank and make decisions:- Why

Compare 3 investments:

Compare

Choose a investment and make decisions:- Why

Alternative choice

MappingFinal Report:

Introduction

Body:

Investigation

Explanation

Comparison

Choice

Alternative Choice

Taxation Required

Conclusion

Resources

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Mapping:

ANZ Bank:

Queensland Bank:

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Money invested for afixed term at a fixedrate of interest whichapplies for duration of

the deposit.

Advantages: you can:Add extra fundsReinvest your funds for

another term.Withdraw part or all of the

funds by cheque or ATM.

Early access to termdeposits.

Disadvantages:-Access to your funds

before maturity, youwill be charge $30 toyour funds.

Time frame: invest for5 years.

ANZ Bank:Term Deposits

Security: a fixed rateof return over your

selected fixedinvestment term.

Queensland Bank:

Term Deposits

Money invested for afixed term at a fixedrate of interest whichapplies for duration of

the deposit.

Time Frame: invest for5 years

Disadvantages:-You will be charge$30 to your funds.

Advantages: you can:-Choose how and whenyou receive your interest

payments.-Reinvest your interest

payments.

-Use Internet banking tocheck your balance.-Arrange direct paymentto another bank account.-Pay the interest rates.


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Share:

Property:

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SHARE

Example: I and mybrother invest together,

so we will share theinterest.

Advantages:-Limited liability.-You can sell share.-Share in growth ofearnings and assets.-Higher returns.

Disadvantages:-Less control.-Interest dividends.-Last to receive a

portion of assets.-Pay tax.

Share is an investmentin partnerships.

PROPERTY

Advantages:-Deduct for interest

payments.-Measuring returns.-Secure your finance.

Property is an investment

that invests in property such

as houses or apartments.

Disadvantages:-The indivisibility of theinvestment.-Higher cost of borrowing.

-Bank fees andgovernment tax.

Example: I spend

$200,000 to buy a location

in Sai Gon Centre, then I

permit other one to rent it,

I will receive the profit in4% per month is $8,000.


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Alternative Choice:

RESOURCES:http://ezinearticles.com/?Investing-in-Property---Choices-and-Alternatives&id=259009http://en.wikipedia.org/wiki/Share_(finance)http://www.boq.com.au/personal_savingsandinvestment_premierinvestment.htmhttp://www.anz.com/australia/persbnk/prdsrv/savings/term deposit.asphttp://www.anz.com/aus/fin/super/products.asp

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Alternative ChoiceSuperannuation

Disadvantages:-You will be chargedfees when you move

your accounts.- Cant receive yoursuperannuation untilyour retire and reachyour preservation age.

Superannuation is aninvestment that saving

money for your retirement.

Advantages:-Receive yoursuperannuation if youhave reached your

preservation age.-Can work in part-time

but also receive yoursuperannuation.

Superannuation funds:- Accumulation funds

- Defined benefit funds
http://ezinearticles.com/?Investing-in-Property---Choices-and-Alternatives&id=259009http://en.wikipedia.org/wiki/Share_(finance)http://www.boq.com.au/personal_savingsandinvestment_premierinvestment.htmhttp://www.anz.com/australia/persbnk/prdsrv/savings/term%20%20deposit.asphttp://www.anz.com/aus/fin/super/products.asphttp://ezinearticles.com/?Investing-in-Property---Choices-and-Alternatives&id=259009http://en.wikipedia.org/wiki/Share_(finance)http://www.boq.com.au/personal_savingsandinvestment_premierinvestment.htmhttp://www.anz.com/australia/persbnk/prdsrv/savings/term%20%20deposit.asphttp://www.anz.com/aus/fin/super/products.asp


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II) Explanation:

-Term Deposits: money invested for a fixed term at a fixed rate of interest which applies for

duration of the deposit. Term Deposits has two types: long term and short time, but in this

task I choose long term (5 years) to invest because it has higher profit.

-Share is an investment in partnerships. That means you and other one invest your money

together. It is a high risk investment that offers a high return.

-Property is an investment that invests in property such as houses or apartments. Sometimes,

it includes money, goldYou can buy it and sell it to others with a higher price and the

higher price will be your return.

III) Profitability

3.1 ANZ Bank:

6-12 months: 3.15%

12-24 months: 3.25%

24-36 months: 3.25%

36-48 months: 3.25%

48-60 months: 3.25%

Example: I invest $200,000 to ANZ Bank; the interest rate is 3.25% in 5 years (60 months),

so I will receive $6,500 in profit.

3.2 Queensland Bank:

6-12 months: 2.15%

12-24 months: 3.07%24-36 months: 3.15%

36-48 months: 3.15%

48-60 months: 3.15%

Example: I invest $200,000 to Queensland Bank; the interest rate is 3.15% in 5 years (60

months), so I will receive $6,300 in profit.

3.3 Share: It has high risk that makes the return is high, too.

3.4 Property: You can buy a property and then sell it with the higher price. So the return in

property is high that depending on the value of property in market.

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IV) Advantages and Disadvantages:

4.1 ANZ Bank:

Advantages:

You can:

- Add extra funds that mean you can invest more the amount of money than the first time if

your investment is develop and it has profit.

- At maturity, you can reinvest your funds for another term that mean you can invest your

amount of money that you have invested in term deposits to another term if your

investment isnt develop and it doesnt have the profit.

- Withdraw part or all of the funds by cheque or ATM.

- Early access to term deposits.

Disadvantages:

- Access to your funds before maturity, you will be charge $30 to your funds.


Advantages:

You can:

-Choose how and when you receive your interest payments.

-Reinvest your interest payments that mean you can reinvest by using the profit that you have

had in your first investment.

-Use Internet banking to check your balance.

-Arrange direct payment to another bank account.

-Receive the interest rates that mean you can receive the profit of your investment on

maturity.

Disadvantages:

-You will be charged $30 to your funds.

4.3 Share:

Advantages:

-Limited liability.

-You can sell share that means if you dont want to continue your investment, you can sell

share to bank and receive the money that is agreed of bank.

- Higher returns that you can receive when you invest your money on share.

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-Share in growth of earnings and assets that means the amount of money that you earn on

investment will be divided to partnerships and it is depending in the growth of earnings and

assets. If you have higher earnings and assets, you will divide it with higher price.

Disadvantages:

-Less control because the market and the value of assets are moving (increase or decrease).

-Interest dividends that mean you will receive the interest when you invest but you must

divide it to partnerships.

-Last to receive a portion of assets that mean the profit will be dividend to your partner, so

you will receive the profit after dividing.

4.4 Property:

Advantages:

-Deduct for interest payments.

-Measuring returns.

-Secure your finance.

-Receive the good returns from good increases in the prices for property that mean when the

value of location is increased.

Disadvantages:

-The indivisibility of the investment.

-Higher cost of borrowing.-Bank fees and government tax that you will be charged or paid for investment.

-Lose money if the investment goes down in value. The value of property can change all time,

it can decrease sometimes.

V) Security:

5.1 ANZ Bank:

You will have a fixed rate of return that over your selected fixed investment term.


You need to open an account in Queensland Bank when you choose term deposit to invest

your money.

5.3 Share:

You should have an account if you want to buy a share in a company to invest.

5.4 Property:

You should know the change your property in market by using mobile, newspapers

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VI) Time Frame:

6.1 Term Deposits:

I will invest for a long term as 5 years to receive the high interest.

6.2 Share:

It doesnt have a time. That depends on the price in market, you can decide when is the good

time to sell and buy a share.

6.3 Property:

It doesnt have a time to invest. The value of property is change everyday, so the time that just

depends on the price in market. You see the value is high that is the time of you to sell

property to receive the returns.

VII) Comparison:

7.1 ANZ and Queensland Bank: Term Deposits

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This is a chart that shows you the different between the interest rate of ANZ Bank and

Queensland Bank in 5 years.

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Amount to invest: $200,000

ANZ Bank Queensland Bank Minimum Investment: $5000 Minimum Investment: $1000

Interest Rate 6-12 months: 3.15%

12-24 months: 3.25%

24-36 months: 3.25%

36-48 months: 3.25%

48-60 months: 3.25%

6-12 months: 2.15%

12-24 months: 3.70%

24-36 months: 3.15%

36-48 months: 3.15%

48-60 months: 3.15%

Advantages - Reinvest your funds for another

term.

- Add extra funds.

- Withdraw part or all of the funds

by cheque or ATM.

- Early access to term deposits.

- Receive the interest rates.

-Reinvest your interest payments.

-Choose how and when you

receive your interest payments.

-Use Internet banking to check

your balance.

-Arrange direct payment to

another bank account.

-Receive the interest rates.

Disadvantages - Access to your funds before

maturity, you will be charge $30 to

your funds.

-You will be charge $30 to your

funds

Comparison of the interest rate be tween ANZ

Bank and Bank of Queensland in 5 years.

3.25%

3.15%

3.10%

3.12%

3.14%

3.16%

3.18%

3.20%

3.22%3.24%

3.26%

ANZ Bank Bank of Queensland

Banks

Interestrate


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7.2 ANZ Bank, Share and Property:

VIII) Choice: After comparing the ANZ Bank and Queensland Bank in term deposit, I have chosen

ANZ Bank because the interest rate in ANZ higher than Queensland, so I can receive

the higher profit (In 5 years, ANZ: 3.25% > Queensland: 3.15%) . Moreover, ANZ

Bank has some advantages like early access to my term deposits and I can reinvest my

money to other term at maturity that Queensland Bank doesnt offer that. And the fees

charged is $30 at the same of two banks, so I dont worry about that I will be charged

more than if I choose ANZ Bank.

To make sure about my investment, I have compare ANZ Bank that I have choose

with Share and Property, and finally I also choose ANZ Bank because it isnt easy to

lost my money as share or property investment. Share and Property investment can

change the value sometimes that depending on the market, so I can lost my money

easily if the value of location or assets is decreased.

IX) Alternatives Choice:ANZ Bank: Superannuation

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ANZ Bank Share Property

Advantages - Reinvest your funds for

another term.

- Add extra funds.

- Withdraw part or all of

the funds by cheque or

ATM.

- Early access to term

deposits.

- Receive the interest rates.

-Limited liability.

-You can sell

share.

-Share in growth

of earnings and

assets.

-High returns.

-Deduct for interest

payments.

-Measuring returns.

-Secure your finance.

Disadvantages - Access to your fundsbefore maturity, you will be

charge $30 to your funds.

-Less control.-Interest

dividends.

-Last to receive a

portion of assets.

-Pay tax.

-The indivisibility ofthe investment.

-Higher cost of

borrowing.

-Bank fees and

government tax.


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I choose ANZ Bank in term deposits but in the other way to invest my money in ANZ Bank

that I can invest in superannuation. This is the other way that I can change my investment in

term deposit. So I should know more and more information about it to make sure my money

invested at a good investment.

Superannuation is a lone term investment that saving money for your retirement. When you

are ready to retire, you will have a lot of money to prepare for a good life after. It is

compulsory for most employees and it is good for them to add their own money to their

contribution.

9.1 Superannuation funds:

-Accumulation funds

-Defined benefit funds

9.2Advantages:

- Receive your superannuation if you have reached your preservation age.

- Can work in part-time but you also receive your superannuation.

9.2Disadvantages:

- You will pay the tax if you earn nothing or have low salary.

- You will be charged fees when you move your accounts.

- Cant receive your superannuation until your retire and reach your specified age.

X) Taxation Requirement:10.1 Property: You will pay 10-15% in property for tax.

Pay tax for:

-Any interest in or right over land.

-A licence to buy or rent land.

You should pay tax per month if you rent a property from the other one and if you buy or sell

it, you also pay tax for the government.

10.2 Superannuation:

In partners superannuation, you may be able to claim the tax if you earn nothing or have a

low income.

CONCLUSION:

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In conclusion, the superannuation is good but I prefer to invest in term

deposit. Although the return is not high but I think it is not hard to lose my

money.

After doing this task, I understand clearly about what types of investmentoptions are available, how much interest that I will get in different options.

Moreover, I know more about the way to invest my money for something that I

should understand as much as I can about the investment.

The investment is important for the development of the economic in your

country and in the world.

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Task 1 Thuy Anh

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