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When rates drop to 0% I guess you'll be the one who is laughing, MR.

Yes, I did, but when the present deposits at 7.5% mature, my option to roll over will probably be at 3% or less.  This is where MR's 3 year locked in option will look a lot healthier.

Maybe I'm missing something here?  If e.g. you had, say $500K in term deposit earning 3% (lucky to get that after RBA cuts rates again on Tuesday)

that's just $15,000 p.a. on the whole balance.

But if you took just $100K of your $500K and traded it as per my earlier example of 10% per trade profit and did that several times a year, you've already exceeded for just that $100K what you'd be getting on the entire $500K in cash.

I might be missing your point, in which case I'm happy to be corrected.

I'm finding it a bit hard to understand what you mean here, Trevor.

Firstly, I wouldn't think too many self funded retirees would depend on bank interest for their income.

Secondly, if they were, then interest rates until the last few months have been high (8 - 9%).

You might like to clarify this?

Whacko!!  How cheap is that for such a reward!  Sign me up, Wayne.

(Maybe you have a move to Nigeria planned - that sounds like the perfect offer to garner all the suckers.  I understand that - despite all the publicity about these scams - Australians are still outlaying many millions every month on these too good to be true offers.)