Hi guys, I currently have 92 grand in savings but it's in a NAB account and only around the 1% interest mark. I'm thinking I should withdraw it and open some kind of separate savings account, like maybe a savings maximizer account with ING or something? Has anyone else here done the same? Im already an ING customer with a orange everyday account but I'm pretty clueless about this. Cheers.
Need advice on what I should do with my savings
jiminycrickets9000 on 02/02/2018 - 13:20
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@amsaini15: put 99 in amp, and the rest in the other… set up transfers to move it back n forth or whatever suits to trigger deals
if the OP is too lazy to move bank, NAB has a "reward saver" which pays 2.5%, with the condition of at least one deposit and no withdrawal per month.
2.55%
May i know how do you usually move such big amount from one bank to another? I have a CBA bank account without check book. How do I deposit to my ING account before even creating a TD?
You can transfer any amount (up to your cap, which may be in the tens of thousands per day) just by using the BSB and account number for ING. I personally am not a fan of term deposits anymore, as the interest rate is often no better than online bank accounts and you have to lock the money away for months or years.
Another alternative for people seeking higher returns is peer to peer money lending like RateSetter. There you can get almost 8% for 3 years, or around 9% for 5, before fees (10%) and taxes are deducted. I use it to put spare money in every now and then. It's not guaranteed like a bank deposit and there is higher risk however.
I can increase my daily limit with CBA up to $25K so when I recently moved $100K, I just scheduled 4 transactions.
UBank like others have suggested. I would also suggest playing max bets on either Wild Stallion or Big Red after someone’s pumped it, then chanting ‘cactus, cactus, cactus!’ or ‘tree, tree, tree!’ respectively during the feature. Research has shown those that don’t chant cactus or tree during the feature do not get as big a payout as those that do.
I'm not exactly keen on getting into real estate as I'm 98% sure I have a genetic disease from my dad's side of the family and I legitimately won't be around for when it starts paying off.
Even more reason to spend it now and enjoy it whilst you can. No point becoming so sick or disabled with thousands in the bank that you can't use so go out and have fun.
I'll be negged for this comment but I don't care. I don't know why we're being brainwashed to save so much when we have a social security system that will look after you. $92,000 is more than enough to cover anyone's needs for years.
It's called OzBS ozbargain syndrome. Symptoms include can't say no to 99c delivered bargains. Tendency to turn all items into xiaomi products. Saving enough eneloops to last next century. Currently no treatment available, however meetings and reducing interaction with website to get maximal benefit
I had a friend thought that he had Huntingtons disease, lost a parent to it, and went on a multi year binge (in all senses incl spending) thinking he only had a few years to live. He couldn't get tested as it would leave a black mark on his insurance, credit rating etc (UK law. Not sure if same here).
Another friend arranged for testing in Ireland, and he found he didn't have the genetic flaws for Huntingtons. Knowing he actually could have a long full life completely changed his perspective.
It's your business, but could it be that the best possible investment for your money could be genetic testing to know what the future really holds?
If you're not going to be around long enough to reap the rewards of real estate in Australia then there's not much point worrying about where you're putting your money.
Invest in genetic testing
put all in bitcoin right now
Floor's the limit, go go go.
Buy WHFPB convertible preference shares. Safer than bank hybrids and yield 6.5% fully franked.The are listed on the ASX and so can be sold quickly if needed.
As someone who has worked for financial services for 10+ years including wealth management, broking and banking @tsunamisurfer has the best answer so far.
If you do go the planner route make sure its a fee for service, independence planner - not one from the big banks.
The thing about financial planning is, you'll want to review your assets at least once a year. This means you're looking at coughing up this (tax deductible) fee every year. So if you're a DIY kinda guy you can spend around $600 and get yourself something called an "RG146 personal advice certification".
The RG146 is the certification your planner had to get to legally give you financial advice. If you pass it then you can feel confident that you can give yourself advice whenever you want it. Note giving yourself advice is probably filled with bias, so you may want to network with other course takers and agree to do each others for free each year, or a similar arrangement - you can figure it out
I am glad rg146 is soon to be changed. That is ridiculous.
I dodged the peak Commbank Financial Adviser scandal, asked them how I could rollover some superannuation as they had bought my Colonial Super Fund. They asked me in for a meeting about it. They attempted to sell me advice costing about 10K on about 30K savings and shares that they knew about through commbank and commsec account when basically all I wanted was some rollover forms.
Laughed my way out of that meeting. They asked why I didn't want the advice and were perplexed/insulted, which was probably the tactic.
I switched to another fund because if that was the way they worked I was probably getting ripped off with fees on my super.
Sad to hear. There are good advisers out there. 10k does seem odd for advice on 30k.
Interesting, very good advice sir
If I don't have the personal advice certification, and I advise myself - can I sue myself?
Sure, but make sure you only use a pay-if-you-win lawyer.
Or if you're the DIY kinda guy, you could go to university for 10 years and probably save yourself some cash. Plus, next time you want to sue someone you are good to go.
Too late.
I had a bit to invest. Half the amount of yours. You can negotiate between them To see who offers you more
I would go into the banks personally as i did. Hope this helps.
Talking fixed deposit here. Mine was for six monthsI'll give you 3%.
I'll give you 3.2%.
It will depends on how risk averse you are.
Cash assets such as online savings accounts and term deposits are low risk but also will yield low returns.
Otherwise, you could look into putting some money into an index fund with a dividend reinvestment plan and just let it compound. It's not as liquid, and is usually better if you don't need to access the funds for a few years.
When you say index fund do you meant ETF funds. Or am I missing something.
Hi Filbert,
My understanding is that index funds can be an ETF, but doesn't necessarily need to be.
For example, you can purchase ETF units (e.g. ASX:VAS) through a broker such as CommSec, or you can invest in a fund directly. In the example provided earlier, the equivalent would be one of the retail funds through Vanguard.
Edit: Just for clarification if the above didn't answer your question, an index fund is basically just another equity fund, but instead of actively being managed by a fund manager, it's passively managed by tracking an index. So for ASX:VAS, you're basically buying into the ASX 300.
What are the pros and cons of going through a broker (I’m currently with NAB) and purchasing direct?
TIA for response.@Filbert: Through a broker you pay a commission (between $10 to $20 depending on the broker), going direct you do not, but the spread you get on the funds maybe different from on the market.
The other thing about direct is you can easily dollar cost average regular investments so you dont try and time the market. So say you have your fund going and you wanted to put a further $100 a week into the fund, you can bpay it for no cost. Obviously that would be completely silly if you had to pay $10-$20 every time in brokerage.
@Vagon: Thanks heaps for the response. I’m just about to come to the end of free trades with NAB so would be very interested in finding out how to go direct.
Do you mind if I pm you to get more details, I like the idea of adding $ every month. I’m at the stage in life with no debts and putting away for retirement and $ in the bank are doing sweet FA.
Just be aware that a DRP means more bookkeeping for tax purposes.
Hi,
Can you please elaborate on DRP?
Thanks
DRP is a dividend reinvestment plan where some securities (ETFs, shares, etc.) allow your dividends to be reinvested rather than paid out to you as cash, either through bank transfer or cheque.
So now why is it more complex for tax purposes?
- Dividends are 'paid out' as normal for tax purposes. So they are recorded as income on your, Tax Return both the base and the franking credits. That's normal, just like any dividend payment.
- The reinvested securities are considered purchased at the date of issue. So they have a different purchase date AND purchase price to your initial investment.
Implication? When selling the securities, capital gains need to be considered at various purchase dates and prices, which can be difficult for the usual retail mum and dad investors.
Benefits:
1. Less cost of entry! Since you don't have to make a trade, you don't have to pay the $10-20 fee for a trade!
2. Discounted price! Because you don't have to cross the spread to buy (the buy price is always higher than the sell price). Also, some securities give a 1%ish discount (on the weighted average price) to their DRP, which incentivises people to stay, and be loyal.
3. Compounding! Those reinvested shares will create more reinvested shares over time, and you become a happy person!—
Example:
XYZ Ltd pays monthly dividends which fluctuate every month.1 Jan 18: Purchase 1000 shares @ $10 each. Total cost $10,000.
1 Feb 18: Dividends declared @ $0.05 per share. Dividends: $50
15 Feb 18: DRP @ $9.98 each. Means I get 5 shares @ $9.981 Mar 18: Dividends declared @ $0.01 per share. Dividends: $10.05
15 Mar 18: DRP @ $9.90 each. Means I get 1 share @ $9.901 Apr 18: Dividends declared @ $0.10 per share. Dividends: $100.60
15 Apr 18: DRP @ $10.01 each. Means I get 10 shares @ $10.01And so on…
Now my portfolio is:
1 Jan 18: 1000 @ $10 each
15 Feb 18: 5 @ $9.98 each
15 Mar 18: 1 @ $9.90 each
15 Apr 18: 10 @ $10.01 eachIf i wanted to sell out my position, calculating the capital gains for something which has many different small entries can be tedious, especially once you add in the capital gains exemption that some investors love to get (by holding asset for over 12 months).
Any online savings account will pay much better than that
We have a sum of money in NAB atm.
They have an account called Reward saver. 2.55% make at least 1 deposit/month and no withdrawals.
I would straight away put 80% in that and then think about other investments.
I have started dabbling in the stock market but it is time consuming, want to get some etf’s but haven’t researched as yet.
We also have some money in Westpac esaver which is I think 2.41% but you need to reload (Close an account and open another) every 5 months.
Term deposit are shite atm.Hi,
just want to share some thought in regard to this "2.55% make at least 1 deposit/month and no withdrawals."
I don't have Reward saver accounts, but used to have ANZ online saving. I guess they are similar. If a withdrawal is made, you lose the (bonus/all) interest in that month.
Provided you can open multi accounts, it's better to separate your saving into different Reward saver accounts. Say, 50k of savings, put 10k each into 5 accounts. So when you need to withdraw e.g, 5k, you are only losing interest from one 10k account, instead of all interest generated from 50k.
In addition, it's good to open accounts in different days of the month. Say on the 5, 10, 15, 20, 25th. When you need money, withdraw fund from the account whose cycle just starts to minimize the interest you will lose.
Hope this helps.
I work for NAB and sometimes I tell customers exactly what you mentioned and they dont understand. maybe it sounds a bit complicated but it's worth doing.
Can you open 5 of these accounts with NAB or 5 Different Banks? My teller told me its best to move your money at the start of the month and all of it into another account so you can still get some interest.
Wow, whilst useful, it just goes to show that NAB's interest is in making things harder for the customer (if you want the best deal).
What a joke. 5 savings accounts to monitor??
When opening our account we had a NAB worker let us in on a little secret with the reward saver that I'm sure you know about.
Because the interest and bonus is credited on the last day or two of the month, if you need any of the cash but don't want to lose the bonus interest you can withdrawl as soon as the interest hits the account but because it's still the 30th/31st,it doesn't effect bonus interest the following cycle, thereby avoiding the 'no withdrawl' clause.
That's a clever workaround, but uBank allows withdrawls and you can still earn the 2.87% as long as you're maintain the monthly deposits.
Crypto can go up 60% in one day
And 60% down the next
However if you hold long enough, you will be up. Remember everyone investing in crypto is an early adopter.
China + India + Korea all big on Crypto is cracking down hard on Crypto. China has banned all ICO. US + UK Banks has banned all Cryto transactions on their credit cards. SEC is holding reviews on the future of Crypto. UN countries on Sanctions are using Crypto to bypass any Sanctions. It's just a matter of time before all the Govt step in with the banks to regulate Crypto. There is too much underground money and tax evasion for them not to do that.
I got pretty sick of paying tax on the interest earnt so I sunk around $30000 into shares. Now I pay tax on the dividends… but my portfolio has gone up around 10% so I feel like my money is doing more for me now.
Yes you pay taxon the dividends, but if they are fully franked, then 30% tax has already been paid on the dividends, so depending on your marginal tax rate, you may not be paying tax on the dividends at all when you do you tax return. (Assuming you are referring to australian stocks)
And if you hold the shares for 12 months or more you get a 50% discount on any capital gains tax.
Boring answer, but nobody has mentioned Rams saver account. Rates similar to ING with $200/m deposit bonus interest, and I found very easy to deal with and no fees even for $100k immediate transfer for a recent house purchase. Another bank account option to consider with better interest than current
Can never withdraw it, without losing interest rate.
That's true, and it will drop for that month. I used it for savings, not transactions so wasn't an issue
Only way to withdraw it is on the first of the month really, but if u need just say 1k, just transfer the rest to a second rams account and it will pay the interest.
Amp bett3r is really good
Put it all in B I T C O N N E C T
HextraCoin or DavorCoin - the next BITCONNNNNNECTSS :)
AMP pays 3% interest.
requires 2k per month from exernal source else perfect
Sell all and move to Africa
amp Bett3r gives 3 percent, it’s the best savings account
buy some index funds , get 8% (on average , with lots of volatility)
Dude get an accountant
You might need a financial adviser (not just an accountant!)
I thought they just sell you stuff?
For what it’s worth ING has become retarded.
Since Xmas every time I buy a e-gift card from Woolworths my account it is marked as fraud and account locked
I went to Guam, told them the day before and once in Guam card was marked as fraud and locked again
The card is bloody useless now, and when ring up I just get sorry nothing we can do bollocks
That’s weird, your card must be flagged.
I’ve used it all over Europe and Asia without notifying them over the past 2 years (been back to aus only twice) and no issue
Ubank is also a rort as first months interest is not paid. Only months where 300 has been paid in the previous month, so if u do go with u bank, do it on the last day of the month.
holy shit, current cash rate is 1.5% and inflation is 1.9%
not only that but also the time value of money is getting worse over years.
all on red.
Take your pick of High Interest Accounts. Buy you some time to think 🤔 and you are no worse off than now.
http://www.infochoice.com.au/banking/savings-account/high-in…
Bitcoin lol
It's a fun ride, and very profitable too. Just be sure to get off and leave someone else holding the bag.
Any reason you're not using that money for down payments of a few properties on interest only loans?
Buy an $80k Audi as a High Yield Investment and buy some hookers with remaining $10K.
Get a cheaper car spend more on the other investment
I have a friend who tells me a particular Nigerian Prince can provide you with big returns on your investment.
Just put your mind back to when you were 6. Now how many lollies could you buy? :D
DO IT!!
ETF
Ubank has a higher % interest rate
or buy a tonne of gold and sit on it
jiminycrickets9000 is obviously not a regular ozbargainer. Anyone who holds $92k in a NAB account paying 1% is not a bargain seeker.
Ubank, a subsidiary of NAB pay 2.87% and if you look a little harder you'll find 3% (someone above already mentioned AMP).
These types of posts are pointless and only stand to show how naive the poster actually isMakes you wonder how they "earned" the money in the first place. A simple google search would answer most questions.
Give it to me, then you can relive the memory's of saving it from scratch. If we combine our savings I can buy a house out right lol.
Go and purchase yourself a copy of The Barefoot Investor, it's a great read and really helps you get the right mindset around your money. I definitely think you can do better than a return of 1%, but you don't have to go nuts with shares/bitcoins either.
Invest in crypto.
Huge profits, if you know what to invest in.
Lol. Great way to get neg'd by salty boomers posting that here!
There are literally people who's job it is to invest money for you.
The good ones will cost more but you may get decent returns.
if they can do it for you why can't op do it for himself given he's got time to do the research? what benefits he gets from those people who'll invest for you?
I mean I could fix my car if I took the time to figure out how to do so. If I stuff up the worst that happens is my car doesnt start - or I make it worse and I break down somewhere.
I wouldn't suggest starting to dabble in investing with 90K personal savings. He's not up for a mild inconvenience if he F's it up.
Or if they can do it for you, why don't they just do it for themselves and they wouldn't have to do it for you?
Arghhh…buy a house?
2 x ford mustangs
Combined ANCAP of ⭐️ ⭐️ ⭐️ ⭐️
Put a chunk in a HISA and use the rest to purchase an ETF or index fund. The split depends on how risk averse you are.
No point in going with term deposits these days as HSIAs often earn more and your money isn't locked away. And absolutely no point in earning only 1%, as even without the tax on your tiny earnings, inflation means you're going backwards.
Once you're more comfortable with the ETF/index, you could look at moving more over there, or simply leave it as it is and see how the returns compare. If you've never invested in the sharemarket before (and it would seem that way if you've got $92k earning only 1%), don't look at the prices every day or even every week. You're doing this as an investment, not as a trader, so pretend it's sitting in the bank - where you wouldn't look at the balance every day - and you should hopefully be pleasantly surprised come dividends time.
Investment Bonds? 10year plan with an average return rate of 7%
@unclesnake:
Need to find account which give same high interest rate for balance more than 100K.