Advice needed: high interest or term deposit (currently overseas)

LTazCaz on 13/04/2018 - 20:58

Hi there,

I have had my savings with ING for about a decade now, but am researching an alternate place to park my money due to their new changes (making 5+ card purchases on top of the $1000 deposit each month). The reason being, I have just moved overseas for an extended period and now I am not being paid a salary in Australia, nor able to make daily transactions - and thus can't access the bonus interest - this account offers little incentive to stay. I know I can use the card overseas, but I would prefer not to make five international transactions each month if I don't need to (as I have an account where I am now living in the UK). I want to keep savings in Australia as I plan to return at some point.

I have been doing some research through these forums, but wondering if anyone can recommend an account that offers a good interest rate that doesn't have the minimum purchase requirement. Minimum deposit isn't so bad as I can move money via online banking - though obviously much better if I am also able to withdraw (ie move money in, then move it out, then move it back in again the next month) as I won't be really able to add more to the account while I'm overseas, unless I keep an amount aside to add to the savings account each month - though of course it's preferable to be earning interest on the whole amount. Also looking for something with no fees.

The other stipulation is that I can open it online, as I am obviously unable to go into a branch. I am still an Australian resident and have an Australian address, passport, licence etc. I no longer have an active Australian mobile number (I still have the number, it's just not active) - and I know some accounts, like RAMS Saver require you to have an Australian phone number.

Have never had a term deposit, but very much open to hearing about them. I would probably not be using this account (so no real need to withdraw), unless there was a dire emergency. I understand you need to lock you money away in a term deposit, but what happens if you choose to lock it away for a year, then need to access the money in 6 months - can you do this? Does that mean you lose all interest?

Extra information: I have a home loan but don't currently have an offset account attached as I only have $10,000 in savings left after the purchase and my broker told me I'd need to have about $14,000 in the offset to make it worth the annual fee of $300 per year.

Any advice for my situation very much appreciated.

Thanks in advance!

Financial Bank Account ING Interest Savings Account Term Deposit

Comments

  • Donaldhump on 13/04/2018 - 21:22

    For that amount of money is it worth worrying about? Only losing about 100 dollars after tax,

    Any way Citibank has 2.8 percent open online.

  • bluesky on 13/04/2018 - 21:54
    +2

    A few possibilities:

    (1) Have a look at my comment here, which was meant for a different context, but maybe the account is suitable for you. I am thinking specifically the Rabo NoticeSaver 90 account, which earns 2.7% (only 0.1% short of ING). The advantage is that once the money is in the account, you don't need any administration, just let it remain there.

    There is only one slight hassle at the beginning: to transact, Rabo provides a digipass device when you open the account online. You will need a family member or someone to send you the device when received at the Australian address. The benefit is that with this device, you can operate your account overseas, without the need for a mobile number.

    (2) Usaver account (some details here) - currently earns 2.87%, requires only a $200 deposit each month, and quite easy to manage online.

    (3) Term Deposits - Ubank currently offers 2.8% for 6 months. Alternatively, since you are already with ING, they offer 2.65% for 9 mths or 2.7% for one year. Generally-speaking, you can withdraw early provided you give 1 month's notice, and there is some % penalty. But you will not lose all the interest accrued. Details are provided in the term deposit T&C, which may vary slightly from bank to bank.

    Hope this info is of help.

  • rambutann on 13/04/2018 - 21:59

    Your home loan should have a redraw facility? Can't you just put it in there?

  • monkeybusiness on 13/04/2018 - 22:37

    Home loan with Offset is almost always worth it. Just because you had 10k in savings left at that time doesn't mean you won't save more to start taking advantage of it. If you dump everything you earn into the offset, the $300 quickly repays itself. Not to mention that if you shop around, some places will waive the fee for the first year.

    • Quantumcat on 15/04/2018 - 13:47

      If he put everything he earned in the offset that would mean making international transactions to take it back out for living expenses

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