Savings account for tax and GST holding?

LNousernamehere on 26/02/2015 - 22:46

Hey all,

Just started doing some contract work on top of my full time job (they're in different industries).

Now because I have it pay my own tax and also GST (I'll earn less than the $75k limit by my contract work, but registered anyway as the company I work for pay it so they can claim the GST portion of what they pay me and also I'll be able to claim it based on work related expenses for me.

So right now I'm paying roughly 40% of what I'm paid into another account (10% GST + 30% tax) just to cover myself, but I want to put it into a savings account so the money isn't just sitting there doing nothing. I can't put it into my regular savings account as whenever I take money out of there I lose my bonus interest.

So long story short, can anyone recommend a decent savings account that doesn't penalise you if you don't add 'x' amount to it a month, and doesn't penalise you if you make a withdrawal. The most I'll be withdrawing is once every few months. Then maybe at the end if every year I'll transfer whatever is left over into my normal savings account.

Tried searching and it's doing my head in! So any ideas?

Financial

Comments

  • spellegrino on 27/02/2015 - 01:40
    +2

    Ubank

  • nebula9 on 27/02/2015 - 01:58
    +1

    Try signing up for Ubank savings account, and then also add on their USaver Ultra transaction account. Keep at least $500 in the Usaver Ultra and you'll get a 1% bump on your savings bringing the total up to 3.77%.

    Benefits to this over other methods is that you can transfer money between your high interest savings and the transaction account instantly, meaning you can withdraw funds or BPAY easily. Good for paying the tax man quickly, or using your savings to buy things when needed without having to wait days for it to transfer from one bank to another (you get a Debit Visa with the Usaver Ultra for ATM use too).

    https://www.ubank.com.au/savings-accounts#rates

    Also remember to take out Super… and do it in this order:

    e.g. If you had a $1100 invoice: Minus 10% GST ($1000), minus 9.5% Super ($905) minus 30% tax ($633.50 left for you to spend)

    Note: You can get slightly more interest (4%) at INGDirect at the moment, but I don't think it's anywhere near as flexible with the transaction account.

    • Nousernamehere on 27/02/2015 - 02:17

      For now I'm not worrying about super out if it as I already have that coming from my full time job. This is just extra money for a house deposit basically, once I start gaining more experience and all that hopefully I can end up going full time contracting with the company I work with and quitting my current full time job, then I'll be on more money and can start paying super out of that.

      I had looked at Ubank as they were the first one I went to, but having to have another transaction account and just having $509 sitting there doing nothing, I'm better off just putting that money into my regular savings account and just taking the hit once a year or so with losing internet for that month (currently with Bankwest Telesaver savings account, plus my regular transaction account with them).

      I already have 4 transaction accounts for various things, 3 of those with NAB as they don't charge an annual fee so I just use them for buffer money so it's out of my main transaction account once my pay comes in.

      Thanks for the help so far though, sadly the search continues.,

      • jaybmate on 27/02/2015 - 08:56

        Isn't it only the minimum $100 required to be int he ultra account? Which isn't very much interest you'd be losing.
        Anyway even if it is 500, is it really worth taking a hit on your main savings account? 500 bucks is only about $1.67 a month interest.

        • Nousernamehere on 27/02/2015 - 22:25

          Hmm guess so. Just more the fact I'll need to have $500 just sitting in an account for no reason, so kind of negates the interest I'd make off the savings account in my eyes..

        • jaybmate on 28/02/2015 - 01:51

          @Porthos:—

        • Nousernamehere on 28/02/2015 - 10:38

          @jaybmate: Other issue with the Ultra account is the depositing of $200 a month into it.

          There can be some months where I won't be putting that much into it, and I don't really want to be screwing around having to transfer cash into it and then back out again. As I said, I already have enough transaction accounts as it is!

  • nebula9 on 27/02/2015 - 17:20

    Maybe they changed the rules since I joined! If so, even better. I tell you what though, that transaction account tied to Ubank has been a life saver. I would still highly recommend it.

  • coolsteps on 01/03/2015 - 14:44
    +1

    ubank is only good for personal not business accounts unless you are a sole trader. try Business TeleNet Saver for companies linked to a zero account

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