The Reserve Bank has increased their cash rate yet again.
With no news from the Big 4 banks regarding their interest rate hikes (which is never worth the thought anyways), Macquarie Bank has stepped in and announced that they will increase their Savings account welcome rate for new customers by 1.10 percentage points, to a total of 3.10% for the first four months on balances up to $250,000. This change will be effective from 3 August 2022.
Be good if it that was the home loan rate tho'
Hmm, so you make $2,500 interest on $250,000 in 4 months. But then income tax takes 45% of it I guess.
That depends on your tax rate. It's not capital gains.
But net capital gains depend on your marginal tax rate, and the net gain can be discounted by 50%?
Capital gains held for 12 months or more attract a discount of 50%. For example, if you bought shares and held it for at least 12 months before selling. But even shares could be income if you are a day or swing trader which then attracts your marginal rate.
@[Deactivated]: Yes, but either way the net gain is taxed at your marginal rate. Same as interest payments.
and the net gain can be discounted by 50%?
not for bank interest. it's not capital gains.
@jv: Yes, but the OP stated:
That depends on your tax rate. It's not capital gains.
Which implied that capital gains didn't take your marginal tax rate into account, which was not correct. Depending on the time period between capital tax events there may be a 50% discount applied to the gain, but it's still ultimately taxed in accordance with the marginal tax rate for that financial year.
Even if you were in the highest tax bracket, marginal tax rates do not even work that way. You don't instantly pay 45% tax just because your total income is in the highest bracket. You would only be paying 45% tax on income above $180,000. Your total effective rate is likely to be much lower.
However, to simplify things, if you are already in the highest tax bracket i.e. earning >$180,000pa, your interest from this account will be taxed at the highest tax bracket rate as it would be money earnt in addition to your $180,000+ salary…
Hopefully this applies to me, I just opened savings with them yesterday…
Was it an easy process? Did you have to wait for them or can you do it yourself online?
Takes 2 min on the app.. really easy
That's great. Thanks mate.
How to process on the app?
You probably have to talk to them. I'm still stuck on 1.75%. Citibank have variable welcome rates (was 2.1% early July, then 2.6% at the moment)
To withdraw money out of Citibank savers account takes 2-3 days. Is it the same with Macquarie?
No, instant
No it doesn't. It's instant with the linked account if they use Osko. e.g. Citibank to Westpac
@kerfuffle: Macquarie doesn't use OSKO.. it uses Fastpay I believe. Anyways it doesn't take 2 days to transfer money from macquarie.
@stockastics: The no it doesn't was referring to the claim that it took 2-3 days to withdraw from Citibank.
@kerfuffle: I am also with Westpac and getting message it will take 2-3 days. Submitted transfer yesterday, fund still have not arrived
@kerfuffle: Ok, will give another try after the first one completed. Citibank tolde I need to link account first by transfering $1 to Citibank Savers account first. Thanks has been done.
@Sidor: Usually if u send outside of business hours then it gets cleared after 12pm on the following day
i tried, unfortunately im stuck on the 2% introductory rate :/
Guess we're getting 2.25% on the 12th then!
I'm stuck on 1.8%.
Call them saying the introductory rate wasn't applied to your account and they'll fix it.
If they don't ask them about your options regarding moving your funds to ubank.
So will Macquarie increase the honeymoon rate if rates move again next month or will 3.1 be the max they pay for the first 4 months for new customers that sign up today?
It's likely this will continue. The last time we had this kind of inflation in the early 2000s cash management account paid 5.5 - 6.0%.
I'm envious of those who got a Westpac 5 Year Term Deposit at 8% p.a. in 2009. But at that time there were only 9 upvotes …
That's because it was the middle of the GFC and everyone was afraid many banks will go bust along with their savings.
You stay at the rate you sign up at. I'm still on 1.8% from signup late June.
After they increased it in July to 2.1% I called them about it, even escalated to accounts team to see if they would review and increase. Sadly no they won't increase.
I moved to Rabobank.
I'll likely move too (on 1.8%) - that's terrible
But can you move back?
I can, if I want 1.8%. Probably best to stay with Rabo @2.6%?
hopefully we get something from UBank too
I estimate 2.7 to 2.75%.
starting from 1 September…
Same, waiting for ING to announce too
Always seems pretty misleading to advertise a per annum rate, but only provide it for a period of time less than a year. I’m other words, you can never achieve the full rate advertised.
It's calculated by that per annum rate paid monthly and for a period of 4 months. In fact, because of the cumulative payments as a result of being paid the interest monthly, the effective rate is higher for those months compared to what is advertised.
Yes, but to receive a 3.4% increase on your savings, you’d need to have this rate for a lot longer than 4 months (agree it will be slightly less than a full year due to monthly compounding), but still kinda ironic that an advertised return (ie $3.40 from a $100 investment) can’t even be achieved due to the maximum life of the rate.
I'd say there are a few things in life where the consumer actually needs to do some thinking in the face of a standardised way of expressing a value. Nutritional panels on products are an obvious common one (your chosen serving size may not match the panel's indicative one or the 100g amount).
Geez, opened on 1 July and I'm getting 1.8% bonus…
Far out
Mine says only 2%????
2.00% p.a. welcome rate
Earn a welcome rate for the first four months from account opening, on deposits up to $250,000 in your first savings account. After four months, our competitive standard stepped variable rates apply based on your balance.
When clicked on the link, it says 2%
Me too
The landing page has been updated just now
Everyone doing this 4 months things gee…
They dont realise 4 is a bad number? Make it 8
They should consult you
Existing members not locked in on an intro for 4 months will change to 2.25% on 12th August.
Source?
I think I'd rather a source from Macquarie itself though …
@kerfuffle: https://www.macquarie.com.au/help/personal/home-loans/managi…
Macquarie’s transaction account interest rate will increase by 0.50% to 2.25% p.a. on balances up to $250,000. This follows Macquarie’s decision in June to increase the interest rate customers earn on their transaction account to be the same as its ongoing high interest savings account. Macquarie’s ongoing savings account interest rate will also increase by 0.50% to 2.25% p.a. on balances up to $250,000. Both new ongoing interest rates will be effective 12 August, 2022.
So they wont give 3.1% for accounts opened late July?
If so, then transfer everything from Savings Account to Transation Account from August 12 when the rate for transaction account becomes 2.25%? Will that work?
i dont think so. imagine if your scenario works… then all will get it not just new customers
so if we open now we will be locked at 3.1 for 4 months regardless what happen next month or if they increase their base?
Yeah pretty much. Alternatively, under 35 y.o can go with BOQ for 3% p.a paid monthly.
I'm also wondering the same … anyone who knows more might be able to share some insights?
i think its locked (the rate) - because it says welcome rate 3.1 thats it. fixed.
check citibank thread 2.60 intro 4 months VARIABLE rate.
so it says the rate can change within 4 months. so if they lift their base, the total will go up too
@muncan: you say too long now but later who knows maybe it is too short
just like house price, now too expensive, in 5 years time we see oh it was too cheap
Am I reading the T&Cs correctly that this is only for individuals and not for a business?
Interested in the same for trust accounts
Anyone know if interests calculated daily and added monthly? Also can you withdraw at anytime and assume to linked external account, but is there a limit for withdrawal? Thanks
Edit: I think I found the answer to part of Q: Interest earned is calculated on a daily basis and paid monthly on the last day of a calendar month to your account.
i dont think there is a bank in this world that do other way than interests calculated daily
Not for fixed term! Better to be sure as it said for 4 months.
Anyone opened this account? When click open, it says To open a Macquarie Savings Account, you’ll need to link it to your Macquarie Transaction Account.? So do we need to have 2 accounts with Mac Bank?
Yes
So just open transaction account then open this saving account?
I opened Platinum Transaction Account. Not sure how to open this saving account though? any help. I am logged in.
Menu > Open an account. Not that hard …
@noworsepromo: Click Accounts icon on LHS, then it will list your Transaction account, there should be icon on RHS towards top, say + Open an account
Edit: Also if you put curser on transaction account it will show in blue (I want to..) then more options will show then select Open Saving account.
@noworsepromo: Good stuff.
Also no Aus ATM fee or Overseas ATM fee charged by Macquarie, other than any operator fee, so very handy to know.
@huntabargain: Cheers. I was with ING for the overseas fee rebate and high interest rate but Macquarie beats it by having no deposit condition. And it will be 1.75% after four months which is considerably high too! I'm in love with this bank already.
Earn up to 2.85% p.a. uBank
From 1 September 2022, we’ll be increasing our bonus interest rate to 2.75% p.a. for both our Save and USave accounts. Our base rate will remain at 0.10% p.a., meaning you’ll be able to earn interest up to 2.85% p.a. across all your eligible ubank accounts.
I refuse to jump through hoops like some kind of rate tart. So I’ll have to be happy with 0.10%. But that’s OK. It’s better than nothing.
Actually, a $200 deposit isn’t that high of a bar, so accidents happen. But I’m not going to jump it on purpose
I refuse to jump through hoops like some kind of rate tart. So I’ll have to be happy with 0.10%. But that’s OK. It’s better than nothing.
Actually 0.1% is worth than nothing because you're losing money to inflation every single day.
Thanks for confirming this is a better deal :)
They did this last time with the bait and switch, never using them again.
How to transfer fund into Macquarie saving account from another Bank account? My other bank has daily transfer limit through transfer to BSB Acc no?
Ring your current bank, they will be able to do make it happen
Thanks, I contacted CBA and they increased limit to the max, but to transfer above that I have to go to the branch and they can manually do it, with $30 charge fee. I said forget it, I am already paying CBA $495 fee every year; $30 fee to transfer $$ between my accounts, no way !!
does "new customer" mean never had the Macquarie savings account before or 1 year waiting period or ………? i cant find in T&C
How crap is that !!!