I've been looking for a better online saver interest rate and noticed this offer from Bank of Queensland!
2.75% on going saving interest rate - no bonus or limited period ie 4 month offer or anything. As long as you deposit minimum 1,000 into a linked Day2Day Everyday transaction account.
What do folks think of this deal? anything better out in the market?
Just applied for this one, cheers!
Also only need $200 per month. =o
Are you joking?…
It's at the top of the list.
What's better?
Lol my bad I read it doesn't.
wow, thanks for the spreadsheet
Thank you for your time and effort on the spreadsheet :)
Oh dang, I didn't know my UBank rate is down from 2.87 to 2.6. I guess better start looking again :D or maybe I'll stay for the no international fee whatsoever service.
Quite likely they will drop down to 2.33% on 2 August, going by what happened last time.
thank you for the update.
Have they adjusted their interest rate after the RBA cut last week?
I am waiting for the dust to settle before moving my savings around.
Agreed, best wait till the new rates have been passed on. If its not going to be much difference across the board after new rates have been introduced no point moving money around so soon.
It used to be 3% pa. I think this is after the RBA cut.
RBA has cut 25 basis points 2 months in a row. So 2.75 could be in reaction to 1st rate cut… Might drop again
Yep only reacted to first rate cut so far, will likely drop another .25 soon (but then again so will most banks so boq will probably be best still). Horrible website and app tho…
This was a full 25 basis point cut passed on from the reserve rate's first cut, there has since been another 25 basis point cut.
They theoretically should also cut their rate to 2.5, check if their home loans have been cut again.
There's a good chance they're delaying the cut so that they get an influx of customers.
It's after cut
It's from the first cut, second interest rate cut hasn't been announce as yet for any bank
No, they haven't, for the latest RBA move. An adjustment is imminent.
@Australianjim
According to the members at Whirlpool, who've maintained the spreadsheet, there's been no announcements yet, on what BoQ will or will not do
apm also 2.75%
4 months not ongoing rate
If you going for introductory offers then Rabo bank is 3% for first 4 months.
The bonus does not apply to the first month that the account is opened. So, it would be wise to wait until the following month before moving your money if you haven't got an account already, even if the rate is the highest.
Good point, thanks for the heads up.
Central bankers are wise people, they want you to borrow and spend, not save!
How is their customer service and internet banking?
Internet banking is crap (well does most things, but is very basic), customer service has been good when I've had to deal with them.
That said, there's apparently big improvements in the works to 'digital experience' (ref: AGM slides and executive speeches). George Frazis from Westpac just been appointed CEO and already flagged tech innovation as a area of focus.
I'm hopeful, but it may take time.
Android app is trash - poor functionality, not intuitive and looks 10+ years old!
My experience when I signed up (a few months back), as shared in previous thread. Others have shared their experiences there too.
Would not recommend as a day-to-day account, due to antiquated systems, but to keep some savings given their higher interest rate, it is fine.
Their online and app experiences are genuinely appalling for 2019, haven't been able to get an answer from their customer service about when this is changing for years and so have just switched banks. It's a shame because their' customer service and interests are good.
Strange old world isn't it, when the interest rate and customer service take a back seat to the "experience". 🙁
A good deal, but personally I'd go with UBank. It has a better mobile app and the interest difference is only 9.825 basis points at a 34.5% marginal tax rate.
Calculation BoQ 2.75% - Ubank 2.6% = 0.15% * (1-0.325-.02) = 0.09825%
Ubank will reduce by another 0.25% after the recent rba rate drop. So it's actually 2.35%.
.15 is a worthwhile difference, I'm may put some of my money there. Ubank is still ok, but others like bankfirst they were offering 2.85% on their bonus interest now it's 2.10%. Problem with BOQ is the are more highly leveraged than the other banks and the government have removed the guarantee on bank deposits so if you have a deposit with them your account could more likely be bailed in than the others.
the government have removed the guarantee on bank deposits
This is news to me. BOQ Limited is still on the list of deposit taking institutions that are covered under Financial Claim Schemes. Have I missed something lately?
I agree, seems like ADI's are still guaranteed up to $250k\person https://www.fcs.gov.au/which-adis-are-covered
I'd like to see this in writing somewhere…
They are in the top 10 Australian Banks and are listed #5 in most recent lists.
Endeavour Mutual Bank also offers 2.75% p.a IF you are aged between 18-35 and make a monthly deposit minimum of $400.
That's interesting. Never heard of that bank…doing some research…
Looks like it's in the list of authorised deposit-taking institutions covered under the Financial Claims Scheme
User name fits.
Bonus interest of 1.50%pa is paid if you deposit a minimum of $400 per calendar month and make no withdrawals or transfers. Maximum account balance that bonus interest will be paid on is $75,000.
Yup, the no withdrawal restriction means it's not worth changing from Ubank for us.
Great rate for the under 25’s regardless if the rate does reduce! Disappointing about the lack of Osko or PayID but I’m going to give it a try anyways!
Tempting seeing as ING dropped again to 2.3%
Is it announced yet? still seeing as 2.55% on website
Yep, just got an email
An email was sent out to customers today, not updated on the website yet.
BOQ offering 3.75% to children/young adults is insane for a savings account. RIP 2.8% but ING will still be used for international transaction fees.
What with a grand total of $10k allowed in the account before the rate drops to 2.55%?
Children shouldn't be exceeding 10k easily, and ING has recently dropped its rate to 2.3%… It'll still be better than ING.
Do factor in an imminent drop in your decision. So most likely 2.5% soon.
Anyone opening this account, please note that you will not be getting the bonus rate until next month. Therefore, do not move significant savings into the saver account yet. By all means, sign up this month, and deposit $1000 before end of month, to qualify for next month.
Yes! When I signed up in person the banker told me it would be 2.75% (was 3% when I signed up) immediately, no mention of the following month - cost me a LOT in interest.
When I opened on 4 months ago they kept telling me that the interest would not apply till next month.
Under "interest rates": "For month 1 of account opening, the Base Rate applies, with eligibility assessed at the end of this month, and if met, Bonus Rate will apply from month 2."
Gentle reminder to not open new bank accounts just to get these rates, as they are constantly changing, and 0.15% is not going to make a difference to your savings in the long run given tax and the short life of the rate, consider investing if you want to see growth.
Bank Of Queensland and Bendigo Bank have poor balance sheets compared to the big 4 so there is more risk of your deposit being bailed in.
True. Never put all eggs in one basket.
I thought that it would be covered up to $250,000 under the federal Financial Claims Scheme (FCS)?
More info here: Depositor Protection in Australia. Summarising:
But even assuming one can get back everything, it still takes time to sort everything out, in the unlikely event this were to happen. Therefore, as a depositor, it still makes sense to diversify across different banks.
Do you have any info on ING balance sheet?
ING Australia reported net profit after tax of A$401m in 2018, a rise of 15 per cent from the previous year. Of course, they could be more exposed to rate cuts than major banks as the bank offered a higher rate for their term deposit & saving accounts, but I am pretty sure ING Australia will do just fine for now.
ING Australia financials here.
I am no expert when it comes to banking industry financials, but a cursory look has not thrown up any alarm bells.
can't do Bank@Post with this lot since July 1
will it still count if i do $1000 in and immediately transfer it back out, like i do with ING?
Nothing in the T&C prohibits the money to be transferred out immediately. However, the $1000 must be from an external account.
ING is strong @ 2.30% so probably not worth the switch..
is it best to open the account online towards the end of the month. how long does it take to open up online if you are an existing customer? when you deposit minimum 1,000 into the Day2Day Everyday transaction does it need to remain there for 1 day and cant it come from the linked account or does it need to come from another bank into the account to qualify for the bonus interest?
You can always open the account now, transfer in $1000 to the tx account, and out again. That way you don't have to worry if there is any delay in opening the account at the end of the month. The $1000 has to come from an external account.
You do not need to wait 1 day.
Looks like they passed on the full cut, rates are now down to 2.5%
Thanks for the update!
Now we just need to see what UBank do ;)
The best they'll do is probably 2.4%, worst is probably 2.35%.
MyState Bonus Saver, after the recent rate cut, is at 2.60%
I hope UBank doesn't cut; currently on 2.60%
@SomeGuyOnOzB: UBank just cut to 2.41%… MyState has the best rate atm, but the 150k limit may be a dealbreaker for some. BOQ looking real good now.
@umoddbro: I applied for an account with My State last Thursday, received an acknowledgement and nothing since.
There is also Fast Track Starter account which offer 3.75% P.A if you're under 25 years and for your first $10k.
Not bad for students.