I was searching for a high interest transaction account because I often have $2-4k from my pay sitting very short term in my current transaction account ready to pay bills with. It gets zero interest, but it is too much hassle transferring it to my Usaver account every couple of weeks just for a week or so. I came across the NAB cash manager account. It only pays 2 % but that is better than zero. I need to contact NAB though and see if it functions like a normal transaction account.
http://www.ratecity.com.au/transaction-accounts/nab/cash-man…
The zero interest accounts is one way that the banks etc make money.
Any comments please?
High Interest transaction account
Peck on 09/02/2015 - 00:42
Comments
Thanks for the suggestion. I need ATM access to money too. The USaver account with interest does not have atm access. The USaver Ultra account with zero interest does have ATM access. And so I would still have to do an extra transfer. ( another example that banks rely on people having money in zero interest accounts)
but the USaver ultra account sweeps (automatically transfers) the money from you Usaver account if there is not enough funds in the Usaver ultra account to complete the transaction.
So there is realistically no need to manually transfer the money.
Oh ok thanks. I did not realize that the sweep function happened that quick. I thought that it was an overnight function to maintain your requested minimum balance.
^^^^ What this guy said. Makes perfect sense to me.
ING Orange Transaction Account + Savings Maximiser. If you deposit a minimum of $1000/month into the transaction account, you get 4.0% interest on money in the Savings Maximiser. Transfer between the two accounts is instant, and can be done using the app. Less of a pain in the ass than Ubank for me.
Thanks. Yes I can see the similarities. (Savings maximiser has High interest rate but not ATM accessible) Maybe I just cannot get away from doing the extra transfer.
Bankwest Hero - 3% up to max balance of $5k. Transaction account.
Depends what you want - flexibility or best rate of interest. ING Savings is probably the easiest of the lot… their phone app is incredibly quick and easy to use on the run.
Usaver with Usaver ultra has your primary account. You ask your company to pay you directly into your Usaver account and reduce the sweep to -$100.
This is pretty much a transaction account with 4.02% interest on your total balance -$100.
It basically takes 1 minute to transfer
With mobile apps and Internet connectivity, it only takes a minute to transfer as zrach pointed out. I once went into my credit union for a bank draft. They told me that to pay for it from my savings account would cost a fee. So I just pulled out my mobile there and then and transferred the money to my transaction account to avoid the charge.
Waste of time. Inflation is 2-3%, so your rubbish 4% is actually 2% (at best), less taxes, what is the point? Plus everyone knows exactly how much cash you have and what you spend it on.
That "don't bother, because inflation" argument doesn't make any sense. It's still 4% more than 0%…
If anything inflation gives you more reason to keep cash in a high interest savings account.
Failed maths? LESS INFLATION IT ISN'T EVEN 4%. Its 2% or less.
And 0% less inflation is -2%, which is 4% less than 2% (4% interest after inflation).
Let me know if I need to dumb it down any more for you.
Edit: And to answer your question, maths was my strongest subject. I also have a Commerce degree majoring in Economics and Finance and now work in the Finance industry. But go on, tell me again why he's better off getting a return of -2% net rather than 2% net.
Why can't you get your employer to deposit your pay into your USaver account, and then pay all your bills using your USaver account?
Doesn't that solve all your problems?