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

SAI GON INTERNATIONAL

COLLEGE
YEAR 11- ACCOUNTING
ASSESSMENT TASK 1- UNIT 1A

To: Ms. Liz

Submission
Date: 17th April,
2009

Do Truong
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Thuy Anh-11D
Do Truong Thuy Anh Accounting Task 1 17/4/2009

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 don’t 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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REPORT
I) 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
• Mapping
Final Report:
• Introduction
• Body:
 Investigation
 Explanation
 Comparison
 Choice
 Alternative Choice
 Taxation Required
• Conclusion
• Resources

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Mapping:

 ANZ Bank: Security: a fixed rate

of return over your
selected fixed
investment term.
Money invested for a
fixed term at a fixed Time frame: invest for
rate of interest which 5 years.
applies for duration of
the deposit.

ANZ Bank:
Term Deposits

Disadvantages: Advantages: you can:

-Access to your funds Add extra funds
before maturity, you Reinvest your funds for
will be charge $30 to another term.
your funds. Withdraw part or all of the
funds by cheque or ATM.
Early access to term
deposits.
 Queensland Bank:

Money invested for a

fixed term at a fixed
rate of interest which Time Frame: invest for
applies for duration of 5 years
the deposit.

Queensland Bank:
Advantages: you can:
-Choose how and when Term Deposits
you receive your interest
payments.
-Reinvest your interest
payments.
-Use Internet banking to
check your balance. Disadvantages:
-Arrange direct payment -You will be charge
to another bank account. $30 to your funds.
-Pay the interest rates. -5-
 Do Truong Thuy Anh Accounting Task 1 17/4/2009

 Share:
Advantages:
-Limited liability.
-You can sell share.
-Share in growth of
Share is an investment earnings and assets.
in partnerships. -Higher returns.

SHARE
Disadvantages:
Example: I and my -Less control.
brother invest together, -Interest dividends.
so we will share the -Last to receive a
interest. portion of assets.
-Pay tax.

 Property:

Advantages:
Property is an investment -Deduct for interest
that invests in property such payments.
-Measuring returns.
as houses or apartments. -Secure your finance.

PROPERTY
Example: I spend
$200,000 to buy a location
Disadvantages:
in Sai Gon Centre, then I -The indivisibility of the
permit other one to rent it, investment.
-Higher cost of borrowing.
I will receive the profit in -Bank fees and
4% per month is $8,000. government tax.

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 Alternative Choice:

Superannuation is an Superannuation funds:

investment that saving - Accumulation funds
money for your retirement. - Defined benefit funds

Alternative Choice
Superannuation

Advantages:
Disadvantages: -Receive your
-You will be charged superannuation if you
fees when you move have reached your
your accounts. preservation age.
- Can’t receive your -Can work in part-time
superannuation until but also receive your
your retire and reach superannuation.
your preservation age.

RESOURCES:
http://ezinearticles.com/?Investing-in-Property---Choices-and-Alternatives&id=259009
http://en.wikipedia.org/wiki/Share_(finance)
http://www.boq.com.au/personal_savingsandinvestment_premierinvestment.htm
http://www.anz.com/australia/persbnk/prdsrv/savings/term deposit.asp
http://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, gold…You 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 isn’t develop and it doesn’t 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.
4.2 Queensland Bank:
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 don’t 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.
5.2 Queensland Bank:
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 doesn’t 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 doesn’t 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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Amount to invest: $200,000

ANZ Bank
Minimum Investment: $5000
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%
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.
Disadvantages - Access to your funds before
maturity, you will be charge $30 to
your funds.
Queensland Bank
Minimum Investment: $1000
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%
-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.
-You will be charge $30 to your
funds

This is a chart that shows you the different between the interest rate of ANZ Bank and
Queensland Bank in 5 years.

Comparison of the interest rate between ANZ

Bank and Bank of Queensland in 5 years.

3.26% 3.25%
3.24%
3.22%
Interest rate

3.20%
3.18%
3.16% 3.15%
3.14%
3.12%
3.10%
ANZ Bank Bank of Queensland
Banks

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7.2 ANZ Bank, Share and Property:

ANZ Bank Share Property

Advantages - Reinvest your funds for -Limited liability. -Deduct for interest
another term. -You can sell payments.
- Add extra funds. share. -Measuring returns.
- Withdraw part or all of -Share in growth -Secure your finance.
the funds by cheque or of earnings and
ATM. assets.
- Early access to term -High returns.
deposits.
- Receive the interest rates.
Disadvantages - Access to your funds -Less control. -The indivisibility of
before maturity, you will be -Interest the investment.
charge $30 to your funds. dividends. -Higher cost of
-Last to receive a borrowing.
portion of assets. -Bank fees and
-Pay tax. government tax.

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 doesn’t offer that. And the fees
charged is $30 at the same of two banks, so I don’t 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 isn’t 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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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
9.2 Advantages:
- Receive your superannuation if you have reached your preservation age.
- Can work in part-time but you also receive your superannuation.
9.2 Disadvantages:
- You will pay the tax if you earn nothing or have low salary.
- You will be charged fees when you move your accounts.
- Can’t 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 partner’s 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 investment
options 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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