Need to open a savings account - who should I go with?

AncientWisdom on 18/12/2015 - 21:27

Hi,

I've got some money coming my way and would like to put it away until we are ready to get a mortgage (timeframe is unknown - my guess is at least 12 months but might also be 3-5 years). I've been holding up on opening an ING Direct account until another 5% cashback deal comes out but it's not happening… I was ready to open a RAMS savings account but now they dropped their interest to 3.4% so made me unsure again.

So the options as I see it are:

  1. Just open the damn ING Direct account and be thankful for the 2% cashback offered at the moment
  2. Open the RAMS account and foresake %0.1-%0.15 in interest
  3. Open a Me Bank account and fiddle with making a tap and go transaction every week for the best interest rate

For discussion's sake let's say I'll deposit $10k in the account to begin with which will increase to around $150-$200k over an unknown period (possibly 1-2 years)

What would you do? What do you recommend I do?

Note: even if you have another recommendation for the money held up for the mortgage (e.g. investment or term deposit) I would still like to have a good savings account opened, so am really looking forward to hearing your suggestions but would also like your opinion on the above options.

Thank you!!!

Poll Options

  • 32
    ING Direct
  • 1
    ME Bank
  • 1
    Other Saving Account (please comment)
  • 1
    Other Non Savings Account Option (please comment)
  • 0
    RAMS
Financial

Comments

  • modsec802 on 18/12/2015 - 21:55
    +1

    If you're looking at 5-7 years a low cost index fund or ETF like VAS may be suitable. Obviously higher risk than having a savings account.

    • lancedefrance on 21/01/2016 - 13:02

      Can you recommend an index fund that follows the market? both local and international would be great.

  • bluesky on 18/12/2015 - 21:57
    +1

    The way I see it, they are all fee-free accounts, with no minimums. Open them all, and try out and see which you like best :-)

    If I have to pick one, I find ING to be good. As it is a very flexible account, lots of benefits and there are no restrictions on withdrawals.

    With ME Bank, at the moment, there does not seem to be clarity with their rules about the bonus rate, perhaps they are still amending the rules. As discussed here

    Rams does not provide for any withdrawals, in order for the bonus rate to apply - so a bit restrictive as well.

    • AncientWisdom on 19/12/2015 - 01:59

      Yeah I remembered there was another drawback with RAMS but couldn't remember what it was - thanks for reminding me.

  • moksha on 18/12/2015 - 22:39
    +3

    ING Direct bonus interest is only for the first $100k, so you will need to work out where the rest goes after that.

    Maybe just use the MEBank card once a day on something you do each day, like buying a coffee…

    • AncientWisdom on 19/12/2015 - 01:58

      Good point about the ING Direct maximum amount to earn interest on, thanks.

  • T-man on 18/12/2015 - 22:47
    +1

    You should open an ING Direct account, they offer you $75 for opening an everyday account. https://www.ozbargain.com.au/node/225958

  • AncientWisdom on 13/01/2016 - 11:55
    +1

    Thanks folks, got myself an ING Direct account :-)

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