Just wondering if anyone recommend a savings account with high interest rates.
ING Savings looks good at 2.1% but has lots of criteria (deposit $1000 every month, transactions every month, etc). I was after standard account where you can accumulate your savings.
CBA is shocking really low even with today's rate right (1.35%). Macquarie was offering 1.8% on their transaction account last week.
Best savings accounts with highest interest rates (Jul 2022)
bin555 on 06/07/2022 - 11:06
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Money's also getting less valuable every day in stocks atm as well, just faster.
But stocks will eventually bounce back up, as long as you aren't one of those idiots who sell low and buy high.
Buying diversified ETFs when they're falling is the best way to get a bargain and you'll reap the rewards when they bounce back. Obviously this is only with the funds you can live without for awhile, you should still have a few months worth of reserve in your savings account.
EFT are a long term investment. Five to ten years. The market could easily just go sideways or stagnant
@Mokr: BuT StoCKs OnLy Go Up!@!35
Yep, just have to look at Japan to see that 10 years of zero sharemarket growth is possible if the recession hits hard enough. (Which the conditions we've just been going through have set us up for.) Mind you, as long as iron ore, coal and oil are all strong we should weather it.
In that case you'd easily take the measly 2-3% on a bank deposit.
I'm sorry if this a stupid question, but the bulk of my savings are in cash, we (me and my so) were trying to save for a deposit albeit I think we need an extra 12m or so to grow that to a healthy 120 + 15% for emergencies .
Given the fact that - hopefully - I will need the money available soon, is it even worth thinking about investing or should I sit on cash and take the inflation hit on the chin?
@Mulumulu: Well, first of all, be wary of taking advice from random strangers over the internet, including myself, do your own research for your own circumstance, etc, etc.
With that said…
Generally speaking, stocks perform better than bank interest in the long term, in exchange for short term stability/certainty. Key part is long term.
https://www.google.com/search?q=s%26p+500
If you look at the 500 largest companies index on the US stock market, you'd be forgiven for thinking it's a horrible investment. The 1 year graph and below are mostly in the red.
However, the 5 year and "max" graphs show that anyone who invested in this index in the distant past will have done quite well and will realise that the current downturn is merely a bump in the road. COVID won't be around forever. The Ukraine-Russia war won't be around forever.
Someone who sells now is essentially "crystalising" their losses. It's only an issue if you need the money immediately or in the not too distant future.
Otherwise you ride it out and will see gains on the bounce back. From there, the cycle continues.
So if you have spare money that you won't be needing anytime soon, invest in a boring diversified ETF and trust the overall long term average will be up, ignoring any volatility in the meantime. If you need the money in the short term, don't put it in the stock market.
Once again, please do more research yourself, especially for something like a house deposit. Don't trust a random idiot on the internet.
Don't come crying later if you decide to go all in on a single stock and lose it all, or when you find your cash rapidly becoming less valuable from worse than expected inflation.
Thanks a lot. Ubank does look good.
2.35% next month.
Is that confirmed or are you just assuming they'll pass on the full 0.5% again?
Confirmed.
Thanks, I haven't received any notice from them yet. Was hoping it would be but you know sooner or later their greed will get to them and they'll start passing on only a portion of the increase.
Ubank is good at 1.85% and up to 250,000 I think, I was with ING but left them as the savings were capped at 100K from memory.
Have you seen this spreadsheet? It is kept up to date and lists all accounts, their interest rate and conditions. https://docs.google.com/spreadsheets/d/145iM6uuFS9m-Rul65--e…
Things are a bit dynamic at the moment due to several interest rate increases.
Citibank has 2.10% introductory rate for four months https://www.ozbargain.com.au/node/708835
Rabobank also has 2.10% for four months https://www.ozbargain.com.au/node/708853
Next month AMP increases to 2.10% ongoing with $250 deposit month requirement. https://www.ozbargain.com.au/node/709783You could also consider a term deposit if you don't need access to you money although you are locking your rate in and rates are going up. An example would be Gateway Bank at 6 months for 2.6% https://www.ozbargain.com.au/node/707013
Edit: Ubank is going to 2.35% next month with condition of $200 deposit each month. I have been with them for about 10 years and very happy. Thanks to this post https://www.ozbargain.com.au/node/710817
Thanks a lot. This is amazing. Who maintains this spreadsheet?
Also, how come it doesn't have ubank in it?I am not sure who maintains it to be honest. I found it through a previous post here. It is linked from a whirlpool thread. https://forums.whirlpool.net.au/thread/360w8x43 Ubank is listed, it just hasn't been updated yet to the upcoming rate change.
Also, I am old, so I forgot, but if you are younger, there are accounts with higher interest rates e.g. Bank of Queensland Future Saver ages 14 - 35, 3% interest $50,000 ceiling for interest, but it does have a number of conditions, 5 transactions, monthly deposit etc. https://www.boq.com.au/personal/banking/savings-and-term-dep…
Gateway Bank at 6 months for 2.6%
Hopefully it increases
is doing term deposit with a small bank safe tho
Banks, large and small have a $250,000 govt guarantee
https://moneysmart.gov.au/glossary/australian-government-gua….
The interest rates have been so bad for savings that the Bank of Money Under My Mattress is quite competitive and no bank fees too.
Westpac was offering 3% on the first $30,000 for savers between 18 and 30. I notice it has since been REDUCED to 2.5% despite the RBA increasing the cash rate…
Bank of Queensland is offering 3% on the first $50,000 for savers between 14 and 36.
Thanks
Financial advisers get access to Australian Money Market wholesale rates = banks paying 3 - 4% for 6 - 12 mths at present.
If you're turned off by ING's many hoops to jump through, there's the new ubank (basically 86 400 in all but name).
1.85% if you deposit $200 into either the spend or save accounts, 2.35% next month. Allows you to direct debit from the save account as well.
That rate is up to $250k, but it's obviously not a great idea to have anywhere near that much in saving accounts at the moment, given the current rate of inflation. Your money is getting less valuable every day it spends in there. You should only have your reserve spending funds in there, not the bulk of your savings.
It will be interesting to see which banks pass through rate rises in full to savers and which ones just raise borrowing rates and pocket the difference.