Advice for a Saving Account with High Interest Rate

OMGJL on 25/07/2022 - 12:46

I have received about $40k from my mother in law for her parent immigration sponsor fees, she is currently in the queue, and (I think) she will be remain in the queue for at least the next 2 years….

Since the money is just sitting in our bank accounts doing absolutely nothing, and the money is not really "ours" to invest on anything involving risk, me and my wife think it is the best interest for us to generate some bank saving interest on this fund.

The other factor is we will have to be able to draw the money out somewhat quickly, once we are requested to pay for the sponser fees.

So my dear OzB community:
is there any recommendation of a bank saving account that we can apply, which:

  1. have somewhat of a high interest rate with our $40k ish fund.
  2. able to draw money out somewhat quickly.
Financial Bank Account Savings Account

Comments

  • Jimothy Wongingtons on 25/07/2022 - 12:47

    high interest rate

    oof

    I believe the highest without going on a term deposit is still around 2.5 ish (iirc it was 2.5 for first 4 month then variable after with citibank)

    • Mr Haj on 25/07/2022 - 12:54

      Bank of Queensland offering 3% for balances up to $50,000 for people up to 35 years of age.

      I assume that the RBA will keep increasing the cash rate. Not sure whether BOQ will keep increasing their offer but I expect that others will provided some sort of increase to their interest rates. I have a savings account with ING who are offering 2.5% and I expect the rate to increase in the coming months, so I haven't bothered opening an account with BOQ.

    • OMGJL on 25/07/2022 - 13:00

      for us, if there are some banks that can do term deposit with ability to draw out with around 1 month notice ahead should be do-able….

      • Mr Haj on 25/07/2022 - 15:22
        +1

        Why? The term deposits aren't any better than the rates you can get from a savings account.

    • ShannonN on 25/07/2022 - 15:22

      I seem to remember getting 3 % on a comm bank school account back in 1966 saving accounts sure have declined since LOL

  • Porker on 25/07/2022 - 13:04
    +9

    Do you have a mortgage? If so, consider an offset account and deposit the money there. You won't earn interest, but you'll save on interest repayments.

    • OMGJL on 25/07/2022 - 13:26

      actually very good point, i will try figure this out.

      Appriciate for your tip!

      • Porker on 25/07/2022 - 13:51
        +2

        Also, money can be withdrawn from the offset at any time without penalty. The interest repayments for the mortgage will simply be recalculated at the original amount (less the $40k), at that time.

        Placing money in a term deposit or similar will also have you paying tax on the money earned. The offset option has no tax implications (generally speaking) and can assist with getting ahead with the mortgage.

        • spal on 25/07/2022 - 13:56
          +2

          Also, money in offset account means no tax on the interest saved. If you were to invest, you will need to pay tax on the interest earned. Plus mortgage rate is most likely going to be higher than the fixed deposit interest.

        • OMGJL on 25/07/2022 - 14:09
          +1

          you are the hero of the day!

  • bluesky on 25/07/2022 - 15:12
    +1

    Have a look at @finbar's recent post The Top 10 Best Savings Accounts.

    Just my opinion - if you want an account with few conditions to fulfill each month, and can withdraw any time, then ubank (2.35% from 1 Aug 2022) is the way to go.

  • ab c on 08/05/2023 - 11:22

    ING Max. Saver-> https://www.ing.com.au/savings/savings-maximiser.html

    Read their criteria carefully: easy to meet. I set up AUTO-transfer $1k from another bank to my ING monthly.

    Their rate are competitive, top 3 rates for 5+ years: business model based on hoping to win other business from you: insurance, super etc
    9-May will be 5.25%-> https://mozo.com.au/savings-accounts/articles/which-banks-ha…

    Comparisons-> https://mozo.com.au/savings-accounts/search/results

    May be you can attend to my queries-> https://www.ozbargain.com.au/node/772330

    • OMGJL on 08/05/2023 - 14:59
      +1

      Appreciate you finding information about this, although I've put all extra savings to my offset account which yield pretty good result.

      and I have replied your other query.

      I don't against buying mid-low end motherboard(and I have played with at least half a dozen of those) , but I against saving another $20 on top (from a mid-low end to a super low end) and getting those truly trash mobos… reason in the other post.

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