Do you keep moving your Savings around to the best interest rate?
Do you keep moving your Savings around to the best interest rate?
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I move it every 6 months or so.
I keep checking Canstar.com.au for the highest interest and move it when I find a better rate.
I check to see how bad my interest rate is in comparison. Usually half a percent lower then the top. Even half a percent means quite a bit extra each month. I really need to move around but never do.
All my savings go against our home loan in a offset account.
Your home loan offset interest rate will always be higher than a typical savings account and it is not taxable.
My answer to your question is no.
I do this. Everything in the offset.
I will probably do this as well but, I am still just saving for a deposit at the moment.
Another tip but not related to moving savings around is to setup bank splits with your employer.
Most payroll systems will allow employees to be paid to multiple bank accounts.
You could instruct your workplace to send 50, 100, etc. to a savings account each pay.
This will reduce the temptation to spend the money and the savings account will gradually escalate.Good luck saving the deposit.
Can I ask if I buy a $400k property, and I put $400k in the offset account, I don't pay any interest at all? Other fees not included, will my total repayment at the end of the mortgage be really close to $400k?
By my limited understanding, the answer would be, yes. As far as I know, the interest is calculated on the $400k you borrowed less any thing that you have in your offset account, but, there may be other things I am unaware of.
Yes but within the same bank. I used to have a term deposit until I discovered they had a much better and consistent rate through a savings account as long as I don't make any withdrawls.
I'm starting to move savings around but i now have a few accounts with peanuts in them (and current account too after ING 5% ended). I want to close these accounts hoping that i might qualify as a new customer again on any promo deals. This may be a strange question but is it normal to drain the account balance to 0.00 by way of internet transfer or does the bank normally ask where to wire the remnants when you call to close the account?
Put savings on an offset account of a house loan. Best interest rate you can get :)
Great if you've got a homeloan with offset.
For everyone else the difference in interest is not significant enough to warrant constant changing. Most of the saver accounts would restrict things like amount you can withdraw, minimum deposits etc.
It may only be worth it if you had a LOT of money generating that interest. But if that is the case, you're better off investing elsewhere.
If it was $100 difference would you go through the effort?
I'm saving for a deposit. Minimum required goes into the FHSA account to get maximum 17% bonus, rest goes into a RAMs account at the minute. Figure its probably better to show the same amount going into the same account for a long period of time to prove serviceability. Can still do it with multiple accounts - but in my mind looks a lot better if I can show one two accounts - one being a FHSA account, one being a high interest account, all with the same weekly deposits going in and no withdrawals coming out.
Having said that, I have a seperate interest account to maximise 55 days interest free on credit card usage - between $100 of free interest and $500 of coles vouchers, I can definitely say that using a credit card is advantageous.
I used to move it around all the time (UBank, ING, Rabo, HSBC, ANZ) until I got tired of it and read this quote from Warren Buffett: