What to do with cash?

[want2bewealthy]

So Ive got a few offset accounts, all Interest only loans, Ive run into some spare cash and am not sure what to do with it.

I could simply stash it in an offset but with current rates Id only be saving $1200 per annum which is tax deductible anyway, thats about $16 per week, but Im still in the aquisition phase of my investing and will be heavily for at least the next few years,

Its tempting to use a bit for stuff that I dont necessarily need like a new second hand car or 'toys' but over the years Ive conditioned myself against non deductible income producing items so I dont really want to blow it, my initial thought is to just keep saving another deposit to keep my LVR as low as possible and have backup buffer funds, any ideas?

[Minxdamanx]

Have you got an offset against your PPOR debt (if you have one)? That's where I have any cash as that interest isn't tax deductible.

Alternatively there are deposit accounts with a little interest (4-5%) or a term deposit etc. That way at least it is increasing while you are looking to save a deposit for IP # whatever.

I'm looking at putting some cash into an index fund at the moment - that could be another option for you to consider.