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
    +9

    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
        -1

        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
      -1

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

  • DingoBilly on 19/01/2025 - 17:22
    +14

    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
      +1

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

      • Zonty on 21/01/2025 - 13:13
        -2

        Bank of Melbourne, own by westpac gives 5.15% if balance increase $50. End of statement balance.

        No restrictions of withdrawal.

  • pizzaforlunch on 19/01/2025 - 17:22
    +4

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

    • Techefy on 19/01/2025 - 19:15

      Yeah going to have a look at that

    • bbinc on 20/01/2025 - 09:11
      +2

      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
    +2

    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.

      • Oztx on 21/01/2025 - 09:50

        Oh dang, so ING wont be offering 5.5% pa after rate cuts?

        • peterpeterpumpkin on 22/01/2025 - 00:11
          +1

          Normally the "best" variable-rate savings accounts seem to offer 1.2% above the cash rate. Right now we are considered to be at the peak of the cycle, with a rate of 4.35%. If CBA and Westpac are accurate in their predictions, we might see a cash rate of 3.35% by December 2025. This means ING, often offering one of the best savings rates in the market, might offer around 4.55% if the predictions are true and they remain competitive.

          https://www.ratecity.com.au/home-loans/mortgage-news/high-wi…

          Despite the return to high-ish savings rates since 2024, we probably lost a lot of purchasing power in 2022/2023 when the inflation rates far exceeded savings rates.

          Shares looked like a superior investment in most of 2024. But the market's gains in 2024 were largely driven by "multiple expansion" (investors paying more for the same level of earnings) rather than earnings growth, which may not be sustainable. Buying passive index funds is considered risky due to the concentration of returns among a few large stocks trading at elevated multiples. I don't know what to do and I have very little experience in diversifying investments.

    • angywoo on 22/01/2025 - 13:48

      wouldn't Macquarie savings account be better? 5.35%pa for first 4 months then 5% after. No fees, no deposits and no monthly spend requirements.

      Or am I missing something?

    • 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
      -1

      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.

      • tenpercent on 21/01/2025 - 13:17

        You don't have a dollar a month? 12 dollars a year? Even World Vision sponsor kids get a dollar a day (maybe it's even more nowdays because of inflation).

        • Techefy on 21/01/2025 - 18:24
          -1

          You didnt understand my point mate

  • peterpeterpumpkin on 19/01/2025 - 19:44
    +3

    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
      -1

      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
          +4

          interest is usually calculated daily and paid monthly

          • Drakesy on 20/01/2025 - 16:48
            -5

            @askbargain: Precisely

            Averaged over the course of the month

            • microsnot on 20/01/2025 - 23:35
              +1

              @Drakesy: Isn't that a sum rather than an average? Otherwise you would get very little interest if it simply averaged out.

              • Hangryuman on 21/01/2025 - 15:24

                @microsnot: corrrect - interest is calculated each day on the daily balance, then summed at the end of the month

                so trying to trick the system by transferring a lump sum at the start or end of the month just ain't gonna work girlfriend … ;-)

                so transferring money back and forth between two accounts - one of which will have a zero balance - seeking bonus interest on a zero balance - hmm - let me calculate … bonus interest on zero dollars … um … looks like … zero !?

                sounds like a plan - plan for a WOFTAM …

                • sam-1966 on 21/01/2025 - 17:11

                  @Hangryuman: Confirm this with your bank - some are minimum monthly balance, so you can add $100,000 to an account with $10 in it and then only get interest on the minimum balance… $10.00.

    • 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.

        • kiitos on 21/01/2025 - 07:40

          That's still using 2 accounts, just across different banks, so maybe a bit slower to transfer?

  • ladybird1 on 19/01/2025 - 22:46

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

    • Techefy on 20/01/2025 - 22:53
      -1

      Thank you

  • timhn on 20/01/2025 - 08:23
    +3

    Open Ubank account

    /End thread

  • gromit on 20/01/2025 - 22:09

    I do that at the moment with CBA. I have 2 goalsavers, that way I can put extra in at the start of the month knowing I can withdraw any amount while maintaining the bonus interest. Very handy while building a house with some very expensive months that would see me lose my bonus interest if I wasn't doing that.

    • Techefy on 20/01/2025 - 22:51
      -1

      Thanks a lot for the confirmation, it’s really helpful

  • Qazxswec on 21/01/2025 - 09:15

    Does anyone know if it is possible to negotiate a higher interest rate with their current bank or is it set in stone and the only way to get a higher interest rate is to change banks?

    • DeepSeek on 25/01/2025 - 19:19

      generally not possible

  • tekisei on 21/01/2025 - 10:13
    +3

    Back when ING had by far the best interest rate, this was the correct structure.

    You needed 3 accounts because the growth phase was in the previous month lol.

    Nowadays Ubank is much easier for the same rate, but if you have more than 100k then it would be ING on top of that.

    • Techefy on 22/01/2025 - 00:36
      -1

      Cool, thanks for sharing the ing strategy!

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