Best Interest for Savings Account

CrocDundee on 20/04/2016 - 10:59

Hi all - following on from this post back in early March. I was wondering what the best interest rate for a savings account is at the moment?

I am about to come into some money (approximately 150k) due to the sale of my home and will be using it towards building in the next 6 - 12 months. I don't think I'll need access to it (i'll keep some aside for any personal needs) so was wondering if a term deposit or high interest savings account would be best?

At the moment, the best I have found is ING with the following:
Highest variable rate - For customers who also have an Orange Everyday bank account and deposit their pay of $1,000+ each month. Available on one account for balances up to $100,000 with the additional variable rate applied the month following the deposit. 3.50% p.a.
variable rate (incl. 1.25% p.a. additional variable rate)

Can anyone else recommend others or have experience with ING?

TIA.

Financial

Comments

  • psyren89 on 20/04/2016 - 11:03
    +1

    Currently using ING, works great.

    For the long game, you'll probably want to go with RAMs.

    • CrocDundee on 20/04/2016 - 11:35

      How long is the 'long game'? I would need it when we start building in about 6 months..

      • psyren89 on 20/04/2016 - 15:15

        I had a RAMS account for a couple of years before shifting everything over to ING in preparation for building my house. ING offers a higher interest rate with a lower cap ($100k as opposed to RAMS' $200k) and lets me move my money more quickly.

        If you've got 6 months to spare, you can probably sit any excess over $100k in RAMs, then move it all back at the start of the month your build commences.

    • brainactive on 21/04/2016 - 21:35

      Why RAMs for the long game?

      • psyren89 on 21/04/2016 - 22:17
        +1

        Their interest rate is less volatile than other banks (BankWest, ING, ME Bank, etc.), plus they have a higher cap on the maximum amount they will pay interest on ($200k per account and no limit on the number of accounts, I think - contrast this with ING who pay a higher rate, but cap it at $100k in a single account).

        EDIT: also, reading a post below, RAMS don't offer the high rate for just an introductory period - you get it until they decide to alter their rates.

  • thetrain on 20/04/2016 - 11:18

    Check whether the interest rate will still be 3.5% if you go over $100,000. I use UBank Saver+Transaction which has a rate of 3.37% and a $200,000 limit. You'll need to deposit at least $200 per month.

    https://www.ubank.com.au/transaction-accounts

    • rambutann on 20/04/2016 - 11:30
      +2

      I too am with the UBank Saver+Transaction.

      I went through a phase of trying to find a better savings account, but after looking around I decided that this is still one of the best accounts. Generally those that offer higher interest rates are much more strict on their requirements. With UBank, you can literally withdraw $200 from your account, re-deposit it and still get the bonus interest. Other accounts require much larger sums to be deposited every month, a weekly tap n go purchase (ME Bank) or no withdrawals.

      • CrocDundee on 20/04/2016 - 11:38
        +1

        Yeah something I need to consider. I know that ING requires $1000/mth deposit. Which is doable for me, but I just really want the maximum interest available for the next 6 months…

    • CrocDundee on 20/04/2016 - 11:36

      As far as I know the rate will stay the same unless the reserve bank drop the rates?

      • thetrain on 20/04/2016 - 13:03

        I've been with UBank for more than 3 years and rates have generally been high (though not as good as before). I doubt there will be a significant reduction beyond RBA changes in the next few months.

  • twodollah on 20/04/2016 - 15:05
    +1

    Having used Rams, UBank in the past. I have to say ING absolutely smashes them in its rates and flexibility. Only drawback is the $100k limit.

  • poiuy1234 on 21/04/2016 - 19:12
    +1

    What are the main differences between RAMS, me and UBank?

    • godzilla123 on 22/04/2016 - 16:59
      +1

      One big disadvantage with rams is that one of the requirements for the bonus interest rate is "Make no withdrawals during that month".

  • djkelly69 on 21/04/2016 - 19:23
    +1

    Can also get 3.5% with RaboDirect for first 4 months (up to $250k) without worrying about depositing, etc.

    • CrocDundee on 22/04/2016 - 08:36

      Thanks! I might look into that as well! Are you with Rabodirect? Can you give any feedback of them?

      • SydOzber on 03/05/2016 - 23:28

        Though they are more into Agribanking, online banking Rabodirect has grown pretty fast in Aus/NZ.

  • djkelly69 on 22/04/2016 - 10:59
    +1

    Can't give much feedback as all I have is a set and forget savings account for my son.

    Have had no issues with them and interest is decent - I have almost all in a 60 day notice saver, which I think is 3.15% atm.

    Mobile app is pretty good once you have set it up using a dongle. From memory you need the dongle every time you login online.

    • CrocDundee on 22/04/2016 - 10:59

      Thanks, djkelly69.

  • 28kb on 03/05/2016 - 19:19

    3.25% now thanks to rba

    • [Deactivated] on 07/05/2016 - 05:38

      Actually down again to 3%.

  • CrocDundee on 04/05/2016 - 13:57

    I Just called up ME and they still have the same deal of 3.60% with their savings account…

    • Neoika on 06/05/2016 - 22:22

      I do not think ME Bank will stay that high for long when other major competitors like ING already dropped.

  • [Deactivated] on 07/05/2016 - 05:35

    Regarding MEBank weekly paywaves, is there anyway to bypass this, and say scan the code on a catalog, or an old discontinued item barcode you bring yourself. Thus a $0 paywave transaction.
    Or is there anything sold at coolies for under 10 cents?

    Say if I'm out jogging, I could do a paywave at bigw or coles, without really entering the shop.

    Mebank is currently too much trouble as it is.

    • [Deactivated] on 08/05/2016 - 06:34

      Best idea so far to make MeBank weekly Paywaves more palatable:

      Bring the same bag of a few peanuts (exactly 5 cents worth) in your pocket in to coles/woolies supermarket.

      Walk straight through to the auto-checkout. Weigh the peanuts, paywave = 5c.

      Annual Cost approx: $3
      Total profit for me: $383
      Total annual brain calories used: 1 cal. (approx)
      Total annual benefit cycling for profit = Paid $383 to cycle 130 km p/y.

      Now just need to find something with a barcode for around 5c to make even easier.

      • SydOzber on 08/05/2016 - 08:53

        So what exactly is the offer from MeBank

        • [Deactivated] on 08/05/2016 - 09:21
          +1

          It's still 3.6%, so the highest interest for savings account currently.
          Just the weekly tap-and-go requirement has never been made precisely clear by them.

        • FunkyDuck on 09/05/2016 - 17:59

          @niagra bzo:
          Hey! Do they have a referrals programm?

        • [Deactivated] on 10/05/2016 - 00:49

          @FunkyDuck:
          Go read.

      • leeroys_dad on 10/05/2016 - 19:49

        you would actually be better off buying a new bag of peanuts for 5c each time… so you actually get something for your money

  • CrocDundee on 10/05/2016 - 19:27

    ME Bank have now lowered their rate to 3.35%. Which is on par with the other high interest banks…

    • evie on 05/08/2016 - 23:14

      I think so far they are still the highest?

Login or Join to leave a comment
Login Join