Macquarie to increase it's rate to 4.00% interest on balances up to $250,000 for the first 4 months, before reverting to a rate of 3.20% p.a.
Minimal hoops, no age restrictions like Bank of Queensland's offering and a higher balance also.
Comes into effect from October 6, 2022.
Read more: https://www.savings.com.au/news/which-banks-are-increasing-s…
Previous deal post: https://www.ozbargain.com.au/node/723793
Yea hopefully, I just opened an account with themlast month, sitting at 3.6% now. Compared to nothing with commonwealth.
why would anyone want to open acc with ING? more hoops and at best same rate?
But limited to peanuts!
I’ll get the hoops ready.
I left ING last week to Ubank. No hurdles apart from 200 dollar deposit each month. Little less interest but I don't mind to avoid the annoying hurdles.
The URL is directing me to Savings account 3.70% p.a. fixed welcome rate for 4 months. No mention of 4% that I can see.
Cheers Cameronol.
I'm still little confused, should I open an account today or wait until 6 October to be a 'new customer'?
I joined when it was 3.1%, it stays at 3.1% while the new comers getting 3.6%. Will it happen to those who join now and when the 4% kicks in, you stay at 3.6%?
i have same 3.70% fixed new customer, after 1st month got $39 interest and they took $18 tax withholding, i think i did something wrong, i am new in this game.
If they withheld tax it means you never provided your tax file number when signing up. You can normally add it somewhere in your account settings. Then give them a call and they can refund the withheld amount back to your account.
thnx mate, tfn added, they said can't refund. so i will claiming end of financial year. which is sad
@Harsh Deep: Really? How long since they withheld the amount? Same happened to me with Citibank, I noticed it about a week after it showed on my account and they were able to reverse the withheld amount after I added the tfn. I guess you can claim the credit at tax time too but always better to have it in your own pocket
@pixxelpusher: its been 5 days today, she said its not us, its from ATO, we can't do anything, we cant refund you.
@Harsh Deep: Odd. Mine would have been similar amount of time and they put the credit through for me. Guess if you really wanted it back you could always give the ATO a call and see if they can reverse it on their end. Here's the dates from my statement:
31/08/2022 INTEREST WITHHELD
09/09/2022 REVERSAL OF WITHHOLDING TAX WITHOLDING TAX CHARGED
@pixxelpusher: thanks mate, i will give then call tomorrow again, and lets see, if someone can refund. cheers
My Aus super has gone backwards $6000 in the last 12 months, should I put my super into a savings account?
No. Super is a long-term investment plan
Couldn't you put it back into super later or would that incur taxes
You can’t… just take super out.
@BarneyKB: I initially assumed they were talking about additional super contributions, but now when I look at it again they may have thought you could as well. Might have been since the government had allowed people to withdraw from their super during Covid.
@ATangk: Unless they mean, switch it to cash within their Super fund, otherwise they have no idea how Super works
@TilacVIP: That's what I was thinking… what if it's a self managed super fund? I don't know how they work… could you manage it that way ie can you have one of these accounts as part of your super? Then sell shares and put it into the savings account? Or even if you don't sell the shares, just put any new contributions into the savings account?
@AngusD: Still within the confines of the rules, one would think. I don't imagine you'd be allowed to invest it all on a 1c spec stock on the ASX or Doggie coins
You know exactly the date of when the bottom of the market is? Let me notify all my billionaire friends.
Unless you have money in Super as part of FHSSS - then it can also be a short-medium term investment
Same with mine. Just changed my strategy to 100% cash for the time being
What did you have to sell to acquire the cash?
If you do that you'll be locking in your losses instead of letting them recover with the market. You should leave your super alone if you don't know a lot about investing outside of it.
You’ve locked in your losses, should have just stayed in your current investment strategy and ridden it out.
Right now if you’d stayed in your chosen investment strategy, each dollar into super would be buying you more units than say last year when the markets were higher, which when the market recovers again in however long, will amplify the gains even more.
Unless you’re literally going to be retiring tomorrow (and even then it’s a poor choice), you’ve just lost any potential upsides that the market will inevitably have.
I'll screenshot this and come back in 6 months when markets crash even further. Staying in high growth is a gamble I'm not willing to make in the current market. Each to their own I guess.
@[Deactivated]: Trying to time the market ?
Did you switch to Cash on Dec.2019
Did you switch to Growth on Mar.2020
Did you switch to Cash on Dec.2021
No? You only switch to Cash now ? after market has already gone down for 10 months ?
@[Deactivated]: Trying to get off a sinking ship is almost the very definition of timing the market because at some point you will want to get back on the ship (unless you plan to never be invested again).
@turbodude: So don't sell your house because prices are going down and will go down further ? This is the stupidest conversation I've been involved in for a while. Imagine being so upset because a complete stranger decided to protect their money. I thought Reddit was bad.
@[Deactivated]: 1) I don't have a crystal ball for the up or the down on house prices so no I won't be selling. $50k in fees to buy and sell is pretty easy so you would want to be very confident. And where would I live after selling, and for how long?
2) it seems you are the only one upset
3) remember that you have to be as good at timing when you get back into the investment as you think you are being getting out. A huge portion of gains come very shortly after the bottom of the market and no-one knows when that will be.
4) the suggestions being given to you are well established, backed by mountains of data over many years. No-one can consistantly time the market. They are trying to save you from yourself.
@[Deactivated]: Just don't want you or anyone that might follow your steps after reading above, to turn out like my colleague who switched to cash on Apr.2020 then switched back to growth in mid-2021 and just switched back to cash now.
Good luck !
Not financial advice.
I'll screenshot this and come back in 6 months when markets crash even further.
What you need to do is screenshot it and then come back in 30 years and tell us how you went.
If it was 'obvious' that the markets were going to continue to do down, then the markets would already be down to that level. That's how markets work.
Up to you. But as a sole trader I prefer investing in my own shares. Bugger the tax benefits, I want full control of my money.
Self managed super…?
Massive rort by banks and savings interest. They aren't passing on ALL of the rates and shite banks like this only offer the highest rate to NEW customers.. sounds like the ridiculous practise of only offering low home loan interest rates to new customers as well. Having said that it's the highest savings rate so far.
Rabobank increases the welcome rate for existing customers, for as long as you’re within the four month “welcome” window.
They offer a home loan rate of 3.75% - is it better to just throw your money into the savings account for the 4 months instead of the offset? :D
NO. Your saving interest get taxed!
what's the math on when this is good? I've got 2.69% locked in for the next 4 years
Very lucky
banks arent stupid, you'll see what is coming in 4 years time
@izkai67: that's why I'm trying to do the math to save as much as I can, either in my offset account, or in an account that gains interest. My math says that bank interest rates need to be anything greater than 4% for it to be worth while with my tax rate
Banks want me to log in for years, i said no, too low to log in, so i just did 3 months at a time.
I genuinely want to know this too
You pay 33% tax in savings vs no tax in offset so no, keep it in offset
what's the math on when this is good? I've got 2.69% locked in for the next 4 years
@Kholtien: depends on your tax rate.
2.69 / (1-tax rate) eg if you're taxed at 40%
2.69 / ( 1 - 0.4) = 4.483% as the point where your better putting in savings account than offset.
@lethological: That's great, thanks! looks like I'm just about ready to put money into savings accounts!
I think existing 4 month introductory investors should automatically get upgraded to the 4%.
You are right but also wishful thinking.
I bet you wouldn't be saying that when rates top out and start to drop???
WOO HOO, been waiting for this!
But next month will be 4.25%
Spewing to anyone who signed up at 3.7% from today prior
I signed up at 1.8%, no joke :(
Your rate should have increased to 2.75% and subsequently increase to 3.2%
No way, the base rate is variable!!? Holy cow
Yep, wife and I signed up yesterday.
So annoying, I just signed up with them 3 days ago at 3.7%
I was going to open an account up on Sunday but realized then the RBA rate hike was only 2 days away so I didn't
https://help.macquarie.com/s/article/RBA-interest-rate-decis…
Not sure if that means your welcome rate also will get adjusted?
It won't.
Should I lock into this for 4 months or wait?
You're going to be forever waiting until the rates start dropping
I hope my numbers are correct. I’m comparing to ubank @ 3.6%:
With Macquarie:
For $250k, you’d get $333 more for the 4 months.
For $100k, you’d get $133 more for the 4 months.
For some, it may not be worth moving your money back and forth. For some, it will be worth it.
4.0% does sound much better than 3.6%, but just gotta keep in mind the outcome.
Cheers
Also ubank’s rate starting on 1 Nov
Macquarie’s rate starting on 6 Oct
I've seen other thread people saying ubank will pass on future rate increases, but the 2 dates you've mentioned probably offset that we'll enough
If you have offset, there’s no better place to park your money at this stage.
Am I financially illiterate or is this 16k-tax for free if you have 100k cash to move to this bank?
No, without compounding it is $1333.
100,000 × .04 give you total year.
Divide by 12 to get each month then x number of months you hold it there up to a max of 4. This doesn't account for compounding interest. Smarter people could tell you a formula for that
I think banks use the infinite compounding formula: final value = initial value x e^(i*t). So 100k for 1 year gives $100,000 * e^(0.04 * 1) = $104,081
So total gain in 1 year would be about $4k.
It's 4% per annum, not 4% per month
So I AM financially illiterate lol. Thanks I actually figured this out as I was thinking about it when doing chores lol.
Apparently taxed at 33% as per comment above
It just counts as income so taxed at the rate depending on the tax bracket you fall In
33% is just a proxy people use as an average tax rate. It just gets taxed at your marginal rate
If you have no other income, it's tax free.
If you're on $180k+ it's taxed at 49%
If you're on $180k+ it's taxed at 49%
Maybe less with Stage 3 Tax Cuts in 2024 … ;-)
Why would you expect it to be tax free?
Where are you getting it’s tax free? My comment literally says ‘….-tax’
How can I be a “New Customer” if I’m already a customer?
U can open unlimited new savings ac
Cool. So it should be “New Account”, not “New Customer” is that right?
But you won't get the welcome rate if you do
What if I close my card and reopen?
ING you’re next