Best Saving Account for a Student

Lboyinthecorner on 24/08/2017 - 21:12
Last edited 25/08/2017 - 09:06 by 1 other user

Hello,

I have been following the ongoing OzBargain poll "Best Australian Transaction Bank Accounts in 2017", it's been useful in gathering information about the perspective types of accounts available. However I wondered if anyone could advise me on which account would be most suitable for my situation.

I am currently a student and as such my income during semester is very varied, I have a decent amount of savings which at the moment is languishing in a CBA saving account. Looking for something that can yield greater amount of interest and it seems like I have two choices:

Ing saving maximiser style accounts with $1000 deposit per month (which i am not always sure I will make) to gain bonus interest.

and

Westbank style smaller deposit amount to gain bonus interest but not able to withdraw.

What would people recommend? Any banks that offer a happy medium?

Thanks in advance.

• 

  JimmyF on 24/08/2017 - 21:52

  +1

  ubank, only needs $200/m

  • 

    boyinthecorner on 24/08/2017 - 21:59

    Thanks I'll look into them, do they have a good reputation?

    • 

      Godric on 24/08/2017 - 22:00

      +2

      UBank is part of NAB, so yes?

    • 

      JimmyF on 25/08/2017 - 09:25

      owned by NAB…..

      There is a reason why the banks are called the 'big 4' there basically is only 4 major banks that own all these others like NAB owning ubank.

      Rams is owned by westpac, which is also the other one to look at.

      Rams saver has a higher interest rate, only $200/m, BUT a single withdrawal means no bonus interest that month.

      ubank, the slightly lower interest rate to Rams, still only $200/m, BUT withdrawals don't impact bonus interest.

      • 

        Godric on 25/08/2017 - 10:59

        Yes so part of nab…………..

      • 

        Godric on 25/08/2017 - 10:59

        Here's a few more…………….. ;)

      • 

        Word on 25/08/2017 - 13:17

        +1 Nab/UBank.

• 

  pifts on 24/08/2017 - 22:20

  +1

  Do you have a close mate who uses ING?

  • 

    boyinthecorner on 26/08/2017 - 14:06

    I know a few people that use it. Heard it's pretty good.

    • 

      pifts on 26/08/2017 - 16:43

      +1

      If there's someone you trust, you can get around the $1k requirement by transferring between you and your friend. ING to ING is instant, receive $1k and sent it back straight away once a month. IMO ING is a lot better because of the free ATM use, $75 opening bonus, and the app/Apple Pay.

      • 

        Toph Beifong on 26/08/2017 - 18:45

        Does the $1k deposit need to occur before any particular day during the month? And you're saying once the $1k deposit is made, it can be withdrawn straight away? Even before interest is accrued on that $1k?

      • 

        pifts on 26/08/2017 - 22:20

        @dfk367: make deposits before the current month ends for bonus following month.

        Interest is accrued daily so doesn't get you instant bonus :(

      • 

        boyinthecorner on 27/08/2017 - 21:45

        Good to know, what if I used my CBA to transfer the money there and then back would that work? although the switching might affect with my AUStudy payments from centrelink.

      • 

        pifts on 27/08/2017 - 22:39

        @boyinthecorner: It would work, wouldn't affect Centrelink, but just remember there's a 1-2 day delay transferring.

• 

  JoyVee on 24/08/2017 - 23:27

  Look at large banking organisation's previously called Credit Unions. In Victoria we have Victorian Teachers Mutual bank , another was called Ed credit. Look at different packages and on going costs are to be considered too.

• 

  Bluberry on 24/08/2017 - 23:36

  DONT. If you are thinking longterm, better to invest the sharemarket. Shares will outperform everything else in the long-term although returns can be volatile in the short term.

  If you are not sure what shares to buy, simply buy shares that track the market itself such as SPDR STW ETF. These have low fees as well.

  • 

    ascorbic on 25/08/2017 - 13:51

    I think both are still needed. There will inevitably be unexpected costs over time (e.g. injury, car breaking down etc.) so it's a good idea to have a part of the portfolio as cash. Although shares are quite liquid, there's a cost involved (brokerage) which can cause the return to be worse than a savings account over the medium term.

  • 

    alteyez on 07/01/2021 - 01:05

    For a student who seems to struggle to save 1k a month it might be better to have most of his portfolio as cash until there is a moderate amount before moving into investment. Mostly because this is the time when there are the biggest transitions and also most unpredictable expenses can occur (Moving out, got a job far away, buying car, need to complete a free internship for degree…etc)

• 

  [Deactivated] on 25/08/2017 - 00:09

  -3

  commbank

  • 

    citygal on 25/08/2017 - 13:59

    +3

    You gotta be kidding me. Commbank is one of the banks offering low interest rate.

• 

  garffi on 25/08/2017 - 10:51

  +1

  I'm using Nab Reward Saver

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  boyinthecorner on 26/08/2017 - 14:09

  Thanks for all your suggestions. I'll look into UBank. Open to any other suggestions.