What Do You Think of Savings Account Swapping

Techefy on 19/01/2025 - 16:46
Last edited 19/01/2025 - 22:07 by 1 other user

Hi all,

I came across an idea to get around the “balance growth” requirement for savings accounts to earn bonus interest within the calendar month.

Here’s the idea:

  1. Open two savings accounts with the same bank (e.g., CommBank Goal Saver).
  2. On the first day of the month, transfer all your savings from Account A to Account B.
    • Since Account B started with $0 at the beginning of the month, it now qualifies for bonus interest, regardless of how much you use or add to it during the month.
  3. The following month, transfer everything from Account B back to Account A.
    • Again, because Account A will have $0 at the start of that month, it meets the bonus interest requirements.

I’m planning to try this with CommBank Goal Saver since there are no account fees, and the only requirement for bonus interest is money growth.

What do you think of this strategy? Anyone else tried something similar?

Thanks!

Financial Bank Account Savings Account

Comments

  • Malik Nasser on 19/01/2025 - 17:09
    +5

    Why go through all that. Just make a deposit contribution to the exiting account to qualify for the bonus interest.

    How to qualify for bonus interest
    * Make at least one deposit of any amount into your account in the calendar month; and
    * Have a higher account balance at the end of the calendar month than at the start of the calendar month. If you withdraw from your account, deposit more money than you withdrew in the calendar month.

    • Malik Nasser on 19/01/2025 - 17:16
      +2

      • Since Account B started with $0 at the beginning of the month, it now qualifies for bonus interest, regardless of how much you use or add to it during the month.

      Ok I see what you are trying to do. If you plan on using some of the balance during the month, if it was in the original account it would not accrue bonus interest, but if you transferred to a secondary account it still should.
      As per @Protractor, read the product PDS and T & C

      • Techefy on 19/01/2025 - 19:14

        Yes. Thanks for the comment.

  • Protractor on 19/01/2025 - 17:12
    +1

    If it sounds too good to be true………..read the product PDS and T & C.

    My guess is there is a probably specific condition that will knock the idea on the head. If not already, then probably when (if) they get wind of it being a hack (if it is). I would have tried the idea first before going public, in case you got at least a small gain, before it was closed down.

    • Techefy on 19/01/2025 - 19:14

      Sure, I will have a look at the T and C s. Thanks

  • DingoBilly on 19/01/2025 - 17:22
    +7

    This seems like a lot of work when you can just open an account with Ubank, put in $500 and you get the bonus interest (and the highest bonus interest atm of any bank).

    Not sure why you'd go through all these steps when it's much easier and better elsewhere.

    • Techefy on 19/01/2025 - 19:15

      You are right. I’m gonna give that a shot.

  • pizzaforlunch on 19/01/2025 - 17:22
    +3

    or just open a ubank account? (higher rate and no growth requirement)

    • Techefy on 19/01/2025 - 19:15
      -1

      Yeah going to have a look at that

    • bbinc on 20/01/2025 - 09:11

      Does need a $500 deposit monthly, but you can withdraw

  • sam-1966 on 19/01/2025 - 17:30

    With my account at Westpac, so long as the balance is higher at the end of the month than the beginning I only have to add $1 if I want to to get the bonus interest. Just set up a transfer to one or both accounts of $10 per month and you'll get it. Much simpler than transferring back and forth.

    • Techefy on 19/01/2025 - 19:17

      Yeah. My point is sometimes I use the money in the savings account and I dont have enough money to grow the balance. I that case i wanted to still get the bonus interest.

  • askbargain on 19/01/2025 - 17:55
    +1

    For 4.9% interest yikes

    • Techefy on 19/01/2025 - 19:17
      -3

      😃

  • JimmyF on 19/01/2025 - 18:22

    Far easier to add $1/month to the accounts. But sure YOLO

    • Techefy on 19/01/2025 - 19:17

      Yeah. My point is sometimes I use the money in the savings account and I dont have enough money to grow the balance. In that case i wanted to still get the bonus interest.

  • plmko on 19/01/2025 - 18:39

    You can buy a bank deposit 1 year term from Macquarie for 4.95% with zero effort instead of doing all of that for 4.9% LOL

    • Techefy on 19/01/2025 - 19:17

      Yeah. My point is sometimes I use the money in the savings account and I dont have enough money to grow the balance. In that case i wanted to still get the bonus interest.

    • peterpeterpumpkin on 19/01/2025 - 19:33

      Are you sure you didn't mean ING?

      https://www.ing.com.au/savings/term-deposit.html

      Macquarie term deposit for 12 months is currently only at 4.50% (vs 5% for their variable saver account).

      https://www.macquarie.com.au/everyday-banking/term-deposits.…

      The main issue with ING is the potentially hefty penalty rate for early withdrawal e.g. if 39% of a 12 month term deposit has elapsed you will lose 80% of accrued interest (vs a fixed 25% at Macquarie).

      Some banks are predicting rate cuts will happen in February while others in May.

    • Techefy on 19/01/2025 - 19:18

      😂

  • Nutrino on 19/01/2025 - 19:06
    +2

    Whats with your over use of the slut reference?

    • Techefy on 19/01/2025 - 19:18
      -5

      😆

    • Ocker on 19/01/2025 - 19:30
      +1

      Clearly OP has a problem with the female gender

  • djones145 on 19/01/2025 - 19:23
    -1

    i have a better idea
    hold account a
    give me 1k
    ill promise to send a buck to ur account a to groe it each month

    why dont you have account A less 100
    then open account b, set direct debt where 1 dollar is sent from b to a

    come back in 8 years

    then you dont have to slut your way through accounts jumping

    • Techefy on 19/01/2025 - 19:24

      Yeah. My point is sometimes I use the money in the savings account and I dont have enough money to grow the balance. I that case i wanted to still get the bonus interest.

  • peterpeterpumpkin on 19/01/2025 - 19:44
    +2

    Since it's just a variable account anyway, if you have less than $100,000 you can get 5.5% for now at ubank if you deposit at least $500 each month into any of your Spend, Bills or Save accounts before 11:30pm (Sydney time) on the last day of each month.

    For anything over $100,000 to $1,000,000 in the bank, you might like Macquarie Bank's flat 5% with no deposit requirements. We might need to monitor savings competitiveness later in the year.

    This is the famous leaderboard of savings accounts:

    https://docs.google.com/spreadsheets/d/145iM6uuFS9m-Rul65--e…

    • Techefy on 19/01/2025 - 21:18

      Thank you very much!

    • pandadude on 20/01/2025 - 10:32

      Don't forget the Financial Claims Scheme (FCS) of $250,000.

  • Drakesy on 19/01/2025 - 19:58
    +1

    Your account interest is averaged over the entire month…

    Sure you get 5.5% return.

    But 5.5% of $0 is still $0

    • askbargain on 19/01/2025 - 21:14
      +1

      Your account interest is averaged over the entire month

      Since when?

      • Drakesy on 20/01/2025 - 09:52
        -1

        Since forever?

        • askbargain on 20/01/2025 - 16:36
          +1

          interest is usually calculated daily and paid monthly

          • Drakesy on 20/01/2025 - 16:48
            -1

            @askbargain: Precisely

            Averaged over the course of the month

    • CommuterPolluter on 20/01/2025 - 21:06

      I think you missed the point. On the first day of each month you transfer the entire balance to a new account. The account containing the money will always have grown because it always starts from a base of $0. You can do this indefinitely with just two accounts.

      • Drakesy on 20/01/2025 - 21:28

        Ohhhh, they're targeting an account that has to have net growth.

        Or alternatively just take one out that doesn't need to grow each month.
        I.e. take the money out and put it back in.

  • ladybird1 on 19/01/2025 - 22:46

    Perfectly sensible strategy for some situations. Confirming that this arrangement works for Bank of Melbourne.

  • timhn on 20/01/2025 - 08:23
    +2

    Open Ubank account

    /End thread

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