Hi,
I'm trying to find options for my parents to move a sum of money (80K) into a higher interest account. Would USave be better, ING, or Macquarie?
They are customers with NAB, CBA, and Great Southern Bank at the moment.
Thanks for all your help if able to offer any advice
Wrong answer
Stay away from term deposits
With interest rates going up every month you will be way behind in no time
ING has got has too many hoops to jump
Best high interest accounts are with:
Macquarie Savings
AMP Savings
Rambo
And best of all is UBank
!Remind_me 1 week
Do they need to access the funds? And consider the ease of use for them? If you want something to set and forget but gives you flexibility to access funds whenever without penalty or difficulties then go ubank. If they're on board to jump through some hoops to get some extra, consider ing as they seem to pass on increases faster imo. Term deposit, I'm not sure what's best right now but it's a very different banking that may not suit them (ie. Access to funds without penalty etc). I personally go ubank. It's low maintenance.
With Ubank you need to deposit $200 a month for the higher interest. Macquarie one doesn't need anything but less interest.
I just have an auto transaction of $200 every month, it's almost no effort.
Same. Set it up years ago indefinitely. But I guess it wouldn't suit if you weren't planning on depositing anything further.
@cookie2: The account is for op's parent, there is possibility no regular monthly income - I could be wrong - but it's a factor.
To those who earn regularly, $200 is not a big issue.
@foxmulder: It doesn't need to stay there.
You can withdraw/transfer it back at will.
"Take money out at any time without affecting your bonus rate."
Same with Rabo High interest account with in fact the highest interest (4.25%) during 4 month Intro period.
i.e. No conditions
https://www.rabobank.com.au/rates/personal-rates/
After Intro period switch to Premium Saver for better interest but premium saver requires $200 increase in balance per month
Term deposit isn't a good idea while interest rates are still likely to increase. ING if they can meet the requirements or UBank if they can simply make a $200+ monthly deposit. Macquarie has a good welcome rate but after 4 months drops lower than UBank and ING.
Ubank or AMP for a few months and then a term deposit after the next rate rise
amp can go suck it
St George Incentive Saver - 4% and only need to add $50 a month
Is there anything to be mindful of this account?
I looked through the T&C's and nothing looked out of order. I wanted an account that wasn't limited to $250k
As stated above, the balance must increase by $50 each month to receive the bonus rate.
So if you have a significant balance and need to draw down a small amount, it could cost you dearly. Just something to be aware of.
note; its a 3 month intro rate only
ANZ plus, 3.5% no effort.
and a crappy app with NO logout?
What? Click profile, click "log out".
Are you on Apple? Nothing on Android!
@payless69: I'm on android. Did it a minute ago. https://files.ozbargain.com.au/upload/268582/99575/screensho…
@brendanm: My Profile screen on Android phone (from tapping the head in top left corner) doesn't look anything like that. I've tried switching Quick Login off, but no change.
@brendanm: Just updated the all, no fingerprint login yet, and no logout button on my S21U.
Shall I try a different mobile?
@payless69: Is your profile button up the top, or down the bottom? Mine is bottom left. If you go to profile, then click on your name, you should be able to click "enable biometric login".
@payless69: I suspect it's an older Android version causing the ANZ Plus app to be restricted to an early version. My phone is 2-3 years old, and probably an older version of Android (Huawei EMUI 12.0.0, which is probably Android 10). Phone still performs well, so I'll live with it for now.
Is this ANZ a transaction account or do you need to link one to withdraw? Thanks
It depends on if you think they will be able to jump through all the hoops every month
ING > Virgin > Ubank > Macquarie
Also check out the Savings leaderboard sheet on whirlpool
UBank for fewer/easy hoops and rate changes consistent with RBA, just late ffs.
BOQ if parents are <35yo, unlikely I know, just thought I'd give it a shout.
Or depending on tax brackets and family trust levels go BOQ in a child's name, but might not be worth the effort.
Offset account
If your mortgage isn't fully offset, put it in your offset and give your parents the net interest they would receive after tax, maybe a little more. Check rates but if you're on a variable rate with an offset this would be a win/win.
I appreciate all of your thoughts. I think easier hoops the better for my parents, and not needing to deposit into it monthly would be better. The other one about putting into into an offset for my mortgage is also good, except is there a way that they can still have ownership over the amount versus it being under my risk?
ANZ has no hoops
For no hoop options you may want to take a look at Macquarie or ANZ Plus, these are digital banks though so may not meet your parents other requirements but they are good in their offering.
You can always use the OpenComparison Community leaderboard here to compare savings rates and see what the requirements are.
My ANZ doesn't have a 'sign off' option either.
The Mortgage offset deposit is easily the best.
A simple loan agreement between you and them. There are templates available for free.
I've done this (as the lender) for family members without a hitch.
If you like, you can also make them signatories to your account.
How would this work? What sort of template would I use, and would having them signatories enough to secure their money?
MyState is still a sweet spot between good returns and few hoops!
UBank and Macquarie are the highest no hoops that I know (UBank needs $200 deposit per month but that's it, you can transfer out any time). Macquarie also has higher rate of 4.20% for the first 4 months.
Also strongly recommend anyone interested at Saving Accounts to have this bookmarked: https://docs.google.com/spreadsheets/d/145iM6uuFS9m-Rul65--e…
Thanks I think I'll recommend they go between uBank or Macquarie, but uBank may sound better. Is the opening accounts easier if they are already NAB customers in any way i.e. open all online and transfer, or do you go into NAB to do some verification?
I may also ask NAB if they have any good refinance offers with cashback available to make my life easier as well as I'm at 5.6 percent now, and my current bank can go as low as 4.65.
I am not NAB customer and opened Ubank account in few minutes online. Don't remember the details, I guess enter in Id or something. Card came in in few days.
Do you have a loan with them as well? Are they any good compared to other online lenders? If someone goes with uBank for mortguage, then what CC do people usually go for if a CC isn't part of the package.
If like me, you don't believe (contrary to all ozbargainerz) that interest rate will keep going up (I'm betting on a decrease starting January) then put your 80K in a term deposit.
Currently 4% at Commbank ! (no fuzz, no monthly deposit, no problem)
ING is pretty good if you follow the steps. Otherwise, go for a term deposit.