What are your thoughts on the rate drop? Moving funds elsewhere, staying or waiting to see what RBA does on Tuesday?
From the AFR:
Interest rate update – Savings Maximiser
The additional variable rate for Savings Maximiser will change for new and existing customers effective 1 May 2016 to 1.0% p.a.
(Decrease from 1.25% p.a.)
According to ratecity.com.au the ME online savings account is the highest interest rate at the moment- 3.6%.
Next week: who knows? I can't be bothered changing.
Is this a time limited promo interest though?
You need to paywave a transaction every week to have the bonus interest (1.8% + 1.8% bonus). It's a hassle, but if you shop every week it isn't too bad. I find that it had too much anxiety around it for me to stick with them unfortunately.
If you want a higher return you could look at hybrids issued by the banks. Much longer term and not risk free, but yield to maturity circa 7% at the moment.
Note: this is not financial advice - you should seek advice taking into account your position and risk tolerance
Blame me -moved my money to ING end of March.
Like all Millionaires i spend a lot of time researching on Whirlpool.
;)
But the RBA hasn't even dropped the rate yet =__=
Probably move back to Ubank for a small interest rise.
To help anticipate any RBA move on Tuesday -
https://www.dailyfx.com/calendar, expects rate to stay at 2%
http://www.fxstreet.com/economic-calendar/, hasn't posted expectation.
I read on igmarkets, the next shift is likely not until Nov 2016. Given a double dissolution. I hope they have one (DD), it sounds disruptive ;->
Whoops, stuffed upon this one :-)
I'm worried that by the time I move all savings to UBank, it will have droped its rate and it will end up being lower than ING!!! :/
this is what happened to me before when I moved money from ING to UBank. Only a couple of months later ING was back in front.
Chances are the other banks will drop their rate as well, making switching pointless. Should know within a week of the RBA metting.
I can't remember getting an email in advance of the 0.25% drop from ing, why not park some cash in rabodirect (as i have) and get 3.5% for 4 months and by that time will see what the others have done with regards to rates
why not park some cash in rabodirect (as i have) and get 3.5% for 4 months
But both the base and bonus are variable aren't they?
Can you provide a link to the AFR? I got the rate drop (shame) and it looks like the 2% paywave is missing too. Is this happening for anyone as well? (Yes I have done the 1k deposit as per necessary)
It is never correct on the first day, apparently their system has to update overnight.
Phew, I was getting worried!
I've been an ING Direct customer for years and didn't receive any warning about this. Recently opened a Life Saver account at Greater Bank and they're still paying 3.5% so might move my money there.
No notification for me either. Really sucks. Maybe it's time to look at RateSetter as an investment?
None here either :/ though I have kinda stopped using them as got a better deal else where.
Open your account today if you haven't already. Last day for the $100 bonus (if referred) closes 2nd May.
Cheers, just signed up!
Can anyone explain or link me to something that explains how the reserve bank makes interest rates like this change?
Does anyone know when the $100K bonus interest savings cap came in? I have had an account since around 2000 and it's the first I've heard of it??
Thanks
Which is likely affecting all the online saving banks. ING Direct might still end up being the best deal.
Got email today from RABO Direct, offering me 0.7% top up bonus rates for new money deposits till 31 August. Good to see that they might be trying to keep existing customers happy.
any idea whats their base rate is ?
So, offers are clearly targeted to certain customers only. I received some term deposit offer instead. I suppose they look at whether you are an active saver with them, or whether its just a dormant account etc.
I'm not well versed in economics but I thought house prices has been an issue for some time. Can someone explain how cutting the cash rate is going to affect house prices and what other tools the government is using to address this?
The house price is not reaching its limit yet. If you compare with other cities around the world you will see Australia house price is still OK with respect to minimum salary. You can take a quick look at Hong Kong, San francisco, New york, etc compared with their minimum salary, they are crazy.
According to forecast, rate cut is going to happen again.
I would suggest to get the minimum deposit you can get like 5% or 10% and just use mortgage insurance. The sooner you get to buying a home the better. Big city like Sydney will definitely up all the time even without rate cut.
When interest rates are low people can afford to borrow more. When they get a bigger home loan they spend more on a home.
dropped to 3.00% today
Definitely moving now.
Where are you moving to? Me Bank?
Nah don't like their conditions on getting bonus interest. Will probs go to U bank if they don't put their rates down as well in the next few weeks.
Those bastards
Those **** ING bastards indeed.
Agh Getting sneaky like Westpac group
Moved already
Citibank current rate still at 3.4% intro 4 months
I overlooked them because they aren't listed by infochoice.com.au.
Is there a more comprehensive comparison site?
Here I find you again, looking for way to save more money, my dear fellow McDuck…
Regarding MEBank weekly paywaves, is there anyway to bypass this, and say scan the code on a catalog, or an old discontinued item barcode you bring yourself. Thus a $0 paywave transaction.
Or is there anything sold at coolies for under 10 cents?
Say if I'm out jogging, I could do a paywave at bigw or coles, without really entering the shop.
Mebank is currently too much trouble as it is.
I just use the self serve checkout each week and split payment. Type in 10c on card and paywave it, then pay the rest on giftcard. If you only want to spend a small amount you could get a few nuts which wouldn't add up to much.
Best idea so far to make MeBank weekly Paywaves more palatable:
Bring the same bag of a few peanuts (exactly 5 cents worth) in your pocket in to coles/woolies supermarket.
Walk straight through to the auto-checkout. Weigh the peanuts, paywave = 5c.
Annual Cost approx: $3
Total profit for me: $383
Total annual brain calories used: 1 cal. (approx)
Total annual benefit cycling for profit = Paid $383 to cycle 130 km p/y.
Now just need to find something with a barcode for around 5c to make even easier.
makes sense bro.
i would also do this at least every 6 days because someone had commented that the whole 7 day rolling thing comes down to the seconds… so if you shop on monday at 10am, then the next week monday at 1pm, you will lose the bonus interest
Actually I just emailed them last night about that.
Similar Example given:
If I Tap&Go at Sunday 11am, then next week Tap&Go at Sunday 4pm, does it qualify.
Once a week ok, but 6 day cycle is tough.
Will post when I hear from them.
Have a look at this comment, which basically contains the email from MEBank to customers at end Feb, about the conditions.
Will look forward to niagra bzo's post when he hears from them to see if things have changed (again).
This is the relevant part of MEBank's reply to a Paypass payment vs time of day that it's made, affecting the bonus interest:
"The time of day does not factor in to the weekly PayPass purchase requirement, so long as you make the purchase during the calendar day it will count. I hope this answers your questions, if you need anything else please feel free to contact ME."
ubank is 3.37%
ing direct is 3%
mebank is 3.6% with weekly (7 day rolling) paypass
bankwest, rams, some others have 3.x% rates when you make no withdrawls and deposit a nominal amount each month.
One option is to put 90% of your savings in one of the accounts that require no withdrawls, then keep 10% of your savings in ing direct and withdraw from this - that way you should rarely if ever need to withdraw from the 90% savings.
thoughts?
i'm speculating but i'm guessing that other banks will follow shortly. it might pay to wait a little bit until the dust settles, esp for accounts that require no withdrawals.
Just checked ubank and they are now down to 3.12% as of 8/5/2016.
it is a bit disappointing that financial won't inform you of an pending interest rate drop. seems like a useful and simple thing to implement. yet they will happily spam you with heaps of other useless junk mail.
It's deliberate, I bet :-)
Disappointing that the RBA drop the interest rate by 0.25% yet ING drop the interest rate on the Saving Maximiser by double that 0.5%.
It is pointless moving until the other banks announce their (eventual) new interest rates. ING appears to be one of the first to react.
mebank is now 3.35%, so they have passed on the full 0.25% decrease. Base 1.55% and bonus 1.80%. No notification of this either.
What do you think of the new ING site? It's worse in every way I can see so far- the march of progress.
better thank ubank's web site, which just makes me want to puke :)
I quite like it. Took a little getting used to, but an improvement overall. Definitely one of the better banking sites out there.
I think I'll look at shares with > 5% Dividends again. Interest is not interesting.
Just so everyone knows, the rates have dropped again
2.75 now
Mebank has also gone down to 3.1
Thanks. Did that just happen today?
Yes I believe so, think it was the higher rate yesterday when I checked.
Thanks!
Rates down to 2.6
Hi iscooljoey2, where did you get this info? I am trying to search for it. But the website page here still says 2.75%. Thanks in advance.
Hi bluesky, it is listed on the app in the interest rate section. Although it looks like it may be an error on their end as per the most recent facebook post https://www.facebook.com/INGDIRECTAUS/posts_to_page/
I see. Thanks, hope it is in error :-)
Really no justification to reduce rates again, so soon after the last drop.
@iscooljoey2: Haha, not sure about others, I used to have near $100 in the everyday account all the time. Just in case I need to use the paypass. I have removed that. Maybe others are doing the same.
How do they keep slowly dropping the rate each month? Are they just hoping that no one will notice? Seems really dodgy to me, but I don't know a whole lot about finance/banks.
Had enough of this ING BS as of late. Left a sympathy 20k in there after they dropped to 2.75%. Now I'm going out. This is just not on anymore.
So whats the best alternative to ING's 2.6% now peoples? Over 3% without much jumping through hoops would be nice. I dont mind having to put in $1000 or whatever each month (if I can also take it out if need be).
The other high interest alternatives:
- Hoop jumper - MeBank 3.1%. Need paypass every week. (Nickname by another OzB member)
- Living statue - Rams 3.15% - static funds - No withdrawal, whats more, need to increase by 200 a month.
ME down to 3.05 now
To be clear this means the maximum rate is now 3.25% rather than 3.5%
The words are additional variable rate which
currently is
2.25% plus 1.25% making the 3.5% rate
May 1st will be
2.25% plus 1.0% making the 3.25% rate
to get this additional rate their website says
Always interested in getting the highest rate and would switch if someone shows me where. Switching and not getting a higher rate is cutting off nose etc. Unless there are other advantages of the alternatives