The Ideal OzBargainers Wallet

staceyasinme on 10/06/2014 - 20:12

So I've been inspired by a blog to pay off our mortgage within 5 years. Am still crunching the numbers to see if it's possible but figured why not have a crack. So I'm doing an overhaul across this board and starting with our wallets.

Current accounts
3 X standard CBA savings accounts (mine, partners, joint)
2 X standard CBA netbank accounts
1 X 28 degrees credit card for travel purposes
1 X AMP home loan (only had for 2 years so not sure if i'll get hit with mortgage insurance if we move it but figured i'd list it. Can track down rates if it helps with suggestions)

I know it will be a pain in the ass to look at moving them but if there are better solutions out there I'll do it.

I'm interested in ING Direct & Paywave as an option to change our CBA accounts and also to know if 28 degrees is still the best option for travelling &/or buying overseas.

So hit me, what does the ideal Ozbargainer wallet contain that i should be looking at?

Financial

Comments

  • No on 10/06/2014 - 20:27
    +6
    • ING Direct 5% Paywave
    • Citibank Platinum for transactions < $100
    • loans.com.au for home loan

    IMO the best deals around atm.

    • staceyasinme on 10/06/2014 - 20:37

      What's the benefit for Citibank Platinum?
      I know the 5% (then 2%) back from ING for <$100, but haven't heard of the Citibank deal?

      • rickb on 10/06/2014 - 20:44
        +2

        Maybe he meant Citibank Platinum for transactions > $100

        • No on 10/06/2014 - 22:04
          +1

          Oh yeah.. more than $100.

        • staceyasinme on 11/06/2014 - 12:54

          Does it give you a cashback too or what other benefit. Thanks for clarifying too

        • No on 11/06/2014 - 12:57
          +1

          It is $0 annual fee and comes with good rewards and insurances.

    • SlickMick on 12/06/2014 - 07:56

      Dunno how I've missed this ING 5% deal - I feel like I've been living under a rock.
      I also have to check whether amex still gives more points than Citibank - might be time to ditch amex.
      But +1 for loans.com.au offset account and ditching saving accounts

  • xyron on 10/06/2014 - 20:31
    +2

    Bankwest Zero Platinum Mastercard
    Bankwest Hero Transaction account (3% on balances up to $5,000)
    UBank for online on-call savings
    CMC Markets for share trading ($9.99 brokerage!)
    Citibank Plus Visa Debit
    28 Degrees Mastercard

    that is my OzBargain wallet, has been for at least 3 years, saved me thousands in foreign transaction, ATM and currency conversion fees alone, let alone all the free travel insurance I get from my BankWest Zero Platinum card.

    No idea about home loans - won't be in a position to hunt for the best OzBargain deal on one of them for quite a while. :)

    • staceyasinme on 10/06/2014 - 20:43

      So I'm assuming you use as per the below?
      Bankwest Zero Platinum Mastercard - for credit card purchase?
      Bankwest Hero Transaction account - for everyday account?
      UBank for online on-call savings - as your saving account?
      Citibank Plus Visa Debit - for everyday account?
      28 Degrees Mastercard - for travelling?
      CMC Markets for share trading ($9.99 brokerage!) - not currently on the cards but will keep it in mind

      I'm mainly confused as to the Transaction Account & Citibank Plus Card..

      • xyron on 11/06/2014 - 00:36

        BankWest Zero Mastercard - my every day credit card. also use it for foreign currency transactions online thanks to no foreign currency conversion fees

        Hero transaction account - my every day transaction account (salary goes in here)

        UBank - online saver yep

        Citibank - only ever use this when I go overseas, usually leave a grand in there at all times

        28 Degrees - same, only ever use when overseas

        CMC - use for share trading (send money directly to the CMC cash account from UBank when needed).

  • rickb on 10/06/2014 - 20:40
    +1

    Your wallet should contain accounts that do not attract fees. You don't mention if your CBA accounts do. Options include NAB Classic, Bankwest, and Citibank. Citibank, whilst well behind CBA for service and internet banking, does provide a debit card that allows you to withdraw money from overseas ATMS at no cost (provided that the overseas ATM does not charge a fee).

    28 Degrees is still the best option for travel purposes if you don't want foreign transaction fees. I also like to carry a card that provides complimentary Travel Insurance, like the free-for-life Citibank Visa Signature (or Platinum). Previously had an ANZ Platinum Visa with great complimentary travel insurance ($89 fee waived due to $20K annual spend) but no rewards points.

    I've been out of the mortgage game for a few years now so not up-to-date on the best deals. However I did pay off my 25 year mortgage in 8 years so I completely understand your desire to pay yours off as soon as possible.

    • staceyasinme on 10/06/2014 - 20:47

      Sorry, yeah i should have mentioned our standard CBA accounts are $4 per month.

      Does 28 degrees now charge for overseas withdrawals (loaded up of course)?

      Prefer the cheapest and best but also few cards as possible.

      Congratulations on your 8 years! Any tips on things to focus on?

      • rickb on 10/06/2014 - 21:20
        +1

        Yes, 28 degrees charge a fee for making withdrawals on a loaded card.

        My tip to pay your mortgage off quicker is something you are already working on - a goal. If you're committed to this goal, like I was, everything will follow suit. My goal was to pay off the mortgage before my son started high school.

        -For the majority of my loan period I paid twice the minimum fortnightly repayment.
        - We delayed the purchase of expensive items like a new car, plasma TV, new computer, etc until after the mortgage was paid.
        - No 24 month interest free purchases.
        - We holidayed every year (every 2nd year overseas) and stayed in affordable accommodation.
        - Bonuses went straight into the loan.
        - Looked for best deals on insurance when premiums were due.

        A bit of work but I saved hundreds of thousands in interest. It helped that I had a genuine hatred of debt.

        You'll get more excellent tips here, including cheapest, best and fewer cards.

      • timetoquit on 12/06/2014 - 21:21

        Not sure if you already knew but you can circumvent that $4 CBA fee by transferring funds in and out - that is what I was told by the tellers to do anyway.. Sure It's annoying but I'll continue to do it for now..

  • ethereal88 on 12/06/2014 - 08:22
    +1

    1) No matter where you are in the world, don't pay fees on any bank account(s). If the account(s) has any stupid restrictions like CBAs to deposit $2K to waive the fee otherwise you are stuffed find something else.

    2) Consolidate all said account(s). I have a trifecta with RAMS for savings, Citibank solely for online purchases, and HSBC for day to day.

    3) Unless you really really really need credit cards and actually use those rewards cut em up and chuck em. Switch to cash and debit.

    4) Use said savings accounts as an investment base. If/when you decide to invest in something keep on adding to it in the mean time. Interest rates in Australia (2.5%+) compared to say the US (<1%) are pretty good.

    5) Gut all expenses to the bone. If you can save more, do it.

    DONE!

  • r3ckless on 12/06/2014 - 21:27

    ditch the online savings accounts. put the funds and excess directly to your homeloan, or offset account. Would you rather earn interest at 3% or saving interest (on home loan) at around 5%?

    • ethereal88 on 13/06/2014 - 17:22

      RAMS is 4.11%, Ubank Ultra is 4.37%. And you shouldn't assume everyone has a rip-off mortgage either.

    • staceyasinme on 18/06/2014 - 20:21

      Totally agree, but we have our wedding in 6 month so it's easier to keep our savings/spendings for that and the honeymoon out for now :)

  • tooblue on 13/06/2014 - 10:54

    ING Direct VD, if <$100 or can be split to multiple $99;
    AmEx Discovery CC, if no PayWave/PayPass;
    BWA Zero Platinum CC, if no AmEx or going overseas;

    All available funds in HL with redraw facility.

    When switching HL, be aware of the total swithing cost including goverment fees and charges.

  • ggmm2013123 on 13/06/2014 - 16:27

    ING < 100
    Westpac CC > 100 - Eagerly waiting to switchover to CITI once balance transfer promo expires

    Currently ME bank for savings - will go to Ubank after bonus rate expires next month
    RAMS (not using - just there and never know if requires in future like Ubank)
    28 Degreees (for international purchases)

    WESTPAC - Yes I need to move around 2000 to waive fees but never felt comfortable with having only online account. What if I need to withdraw more then $2000 a day. I can't withdraw from ATM and having westpac - I can transfer from Me bank to theirs and go to branch and done. (Happy to see suggestion if you guus have better planning for this situation)

  • [Deactivated] on 13/06/2014 - 21:42

    I just use a cash management account with a debit card linked. Interest paid and direct access to my funds.

    Just choose a bank and ask for it.

  • staceyasinme on 18/06/2014 - 20:18

    Ok my latest thoughts are:
    2 X ING transaction accounts (one each)
    1 X ING transaction account (joint)
    1 X ING saver account for our joint savings (4.35%)

    Plus Citibank Rewards Saver Package
    1 X Citibank transaction account (transfer $3000pm in/out make $120)
    1 X Citibank online saver (will not use)
    1 X Citibank Rewards Credit Card Platinum (for travel, overseas purchases and anything i want extra warranty on, insurance etc) I may use it more for the rewards as i get into it, but i don't want to have to repay it all the time.

    It's a bit of a pain having the extra Citibank stuff but it saves me the annual fee and then there's the extra $120 to transfer money in/out. If anyone knows other ways to get the annual fee for $0 i'd consider it.

    Still haven't looked into home loan, but yeah hesitant to see what they'll charge me fee-wise.

    Approval? Disapproval? Extra suggestions?

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