High Interest Bank Account for maximising

alakar on 09/05/2020 - 23:45

Hi
Newbie here.
Just wanting to clarify some opinions with OZB Community.
I am planning to open an high interest bank account. (I am aware that there is a pinned post of high interest rate banks poll) But I am wondering whether

  1. To open accounts at banks which offer introductory periods then jump to another.
  2. Start with just one and stick to it? (BOQ or ING, I think, currently has the good rates?)
  3. What side effects coukd option 1 has? (I am sure I am not the first newbie who has thought of that).

Any opinion counts, thanks.
(ps i could not find similar forum here)

Financial

Comments

  • acai on 09/05/2020 - 23:58

    How long would it take to transfer the funds from one bank to another? If it isn't instant you might miss the interest earned for the period it was being transferred?

    • alakar on 10/05/2020 - 00:07

      Tbh, I don't know. But I don't suppose that is too long? Most get done within 2-4 business days.

    • DChiuch on 10/05/2020 - 05:36

      It usually takes 1 day to transfer from one bank to another, maybe 2. Or if you transfer on a Friday it might take until Monday or Tuesday (3-4 days) - so let's be conservative and say that you lose 3 days worth of interest on average.

      Even if you're swapping from something like Xinja (now 1.80%pa) to 86 400 (1.85%pa), losing 3 days of interest at Xinja = 1.80% * 3/365 = only ~0.015%pa interest lost. But you gain 0.05%pa interest from the switch. So it's worth changing bank account even for a tiny increase in interest rate.

    • sghetti on 10/05/2020 - 09:33

      Depends on the institution but many offer fast payments now which are instant.

  • screensaver on 10/05/2020 - 00:58
    +3

    You are in luck, Macquarie has 2.65 percent, which is excellent considering the official cash rate. Get in by 30 May. Lasts for 4 months, them move to the nect best one like rabobank 2.25

  • NotaSpender on 10/05/2020 - 02:32
    +1

    BOQ 3.00% p.a. up to $10,000 if you're under 24 then the rest in Macquarie at 2.65 which last for 4 months

    • Hellcrusher3304 on 27/05/2020 - 23:36

      I think its 2.85% now

      • NotaSpender on 28/05/2020 - 00:25

        oh yes it is I just checked, thank you!

  • HeWhoKnows on 10/05/2020 - 09:44

    Sounds like you know the side effects already
    You will get jack of Chasing honeymoon rates eventually and there is a daily limit on the amount you can transfer

    Apart from the honeymoon rate you need to also check the ongoing rate and any other conditions such as adding a minimum $200 every month.

    For one of the best ongoing rates with a minimum requirement of a $200 higher balance at the end of each month (One withdrawal allowed) check out the Suncorp Growth Saver Account - currently 1.8% ongoing

    https://www.suncorp.com.au/banking/bank-accounts/savings-acc…

  • JVHifi on 10/05/2020 - 18:35
    +2

    'High' Interest is a misleading term these days!

  • Hurley on 27/05/2020 - 19:53

    I heard switching banks can affect your credit score? To a minimal degree anyway. For the application for Macquarie Bank's savings account there is a tick box where you have to consent to having your information provided to a credit agency to verify identity. Can anyone comment on this negative versus the bonus interest you accumulate from switching?

    • LemonShapedRock on 28/05/2020 - 08:21

      They only access your credit file to verify your identity.

      Your Credit File will have a file note from Macquarie noting they accessed your file, but importantly it won't be listed as a an application for credit or enquiry, which negatively affects your score.

      That was at least my experience.

  • Rapt0r30 on 30/06/2020 - 17:05

    Greater Bank has a Life saver 2% pa account that looks quite good, if you have under 10k in savings then BOQ would be a solid bet while building savings if you can meet their criteria.

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