Hey all,
A family member was lucky enough to inherit a nice property but plans to sell it as she has a home and wants a stress free retirement. Just wondering where the best place is for parking large balances would be these days. Ubank and co. that us plebs use appear to top out at about 250k with the top rates. Having it across multiple accounts probably wouldn't work for her either.
Cheers
Invest in me
JuanLove is not wrong on the splitting idea. But if you can't split do CommBank.
Both NetSaver and GoalSaver appear to give the same rate regardless of deposit and CommBank should be the last bank to fall over in some sort of Years and Years dystopia.
That said you'd think NAB/Ubank would probably be fairly stable too. I disagree that $750k under the mattress is as good as $750k in a Big 4 bank (or one of their subsidiaries). I mean, just from a practical perspective, wouldn't it be a little uncomfortable? Or does Juan have personal experience and begs to differ?
Wouldn't you just turn it into an Allocated Pension with a Super Fund? It gets invested and then drip fed to you while maximising your government pension. Many are set up to last you for life, they get preferential tax treatment and you can draw on it when necessary. The fund will also take care of any tax issues, etc.
She is of pension age. This windfall puts her over the asset limit. I tend to agree with you though. I think there's ways to make it more beneficial through super. Not to mention that shares usually outperform cash, albiet not without risk. Have recommended speaking to an accountant.
always wondered if this would work or the gov go balistic.
use enough of the $ to buy a golden toilet lid / brick / tile.
the toilet lid is an exempt asset as part of the house.
if times get tough, remove it and melt it down and sell.
may back fire with the need to hire 24/7 security
St George Incentive Saver just went up to 5% uncapped, 5.1% for the first 3 months:
The 5.00% rate is a combination of a variable base rate of 1.85% p.a., and a variable bonus* rate of 3.15% p.a.
Earn the variable bonus rate as long as you grow your account balance by at least $50 a month (for customers 21 or over) or $0.01 a month (for customers under 21) and your account balance does not fall below $0.
5.10% p.a. offer: Make it 5.10% p.a. by adding an extra 0.10% p.a. to your variable bonus rate for the first 3 months when you open online.
Online bonus offer available from 20/06/2023 for a limited time only. New Incentive Saver customers only, excluding joint accounts. Offer may be varied or withdrawn at any time.
https://www.stgeorge.com.au/personal/bank-accounts/savings-accounts/incentive-saver
grow your account balance by at least $50 a month
Does this include interest accruals? Because then you only need to ensure you have $32.5k in the bank to get the $50 due to the 1.85% interest. They probably get you by how they calculate the balance growth (the balance at end of month prior to interest paid compared against the balance at start of month, which will be after interest paid the previous month)
None of the accounts I've seen with a need to grow your monthly balance count any of the interest towards the increase. A recurring monthly transfer in is a good choice.
Is she already retired? I would keep the property until close to retirement, sell PPOR, move into inheritance for 12 months, then sell that PPOR to reduce any tax that might be payable.
this guy finances
BOQ would probably consider her as a HNWI
so charitable for more bananas…
I'd be seeking financial advice rather sticking it in a bank account.
Unfortunately, the answer is to split it up across multiple banks, despite your preference. Otherwise, you may as well keep it under a mattress.