Here we go again
From 1 October 2022, we’ll be increasing our bonus interest rate to 3.25% 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 3.35% p.a. across all your eligible ubank accounts.
Referrer and referee each receive $10 after referee makes 5 settled card purchases within 30 days.
Why do most banks only offer good rates up to $250k?
Any banks offering good rates for deposits higher than this?
Refers to the Financial Claims Scheme (FCS) which provides protection to depositors of up to $250,000 per account-holder per authorised deposit-taking institution (ADI) (bank, building society or credit union) in the event of the ADI failing. For joint accounts, each account holder is entitled to the $250,000 guarantee.
if you have over 250k, it is a good problem to have…
That doesn't stop them offering a higher rate for balances above $250k, it just means the FCS will not cover anything over that balance.
@spaceflight that's what I thought, so not sure why they don't.
I mean, it wouldn't even have to be higher, but it definitely shouldn't be lower than what $250k gets or it wouldn't make sense.
I heard from DFA podcast that it is actually not a guarantee, but just an option the Gov may activate. Is there any better guarantee these days?
No idea.
Macquarie comes to mind if you're going over 250k, 1.85% up to 1 million, 1.15% over a million. But you might as well open another account with a different bank.
The government deposit guarantee is 250k, not sure if it's related.
I wasn't sure if it was related to that deposit guarantee, but I don't understand why they'd limit the bonus as wouldn't the risk be with the customer? You would think the more the customer was willing to risk, the higher the bonus be given.
Macquarie is the best I've seen up to $250k at the moment, but you're right, splitting is the best way to get around this, unfortunately just more inconvenient.
Any banks offering good rates for deposits higher than this?
Spoken like a true, cashed up OzBargainer!
@cashless It was just more for "educational purposes" :D
Citi is $500k but for the purpose of the guarantee is combined with NAB and :ubank.
anything for balances over 1 mil?
Nice subtle brag mate gaha.
On a serious note, split into the multiple banks till your mil is fully allocated.
ETFs are on sale too
So is Crypto……
take it down to the dog track. Always some good value going round at the dish lickers.
hooker and blow
hooker and blow
Or crushed up anti-inflammatory
ANZ Progress Saver 1.65%, deposit $10/month, no withdrawals. Not really in the interest ballpark with UBank.
I suggest put just under $250k in each of UBank, AMP, ANZ Plus (each have $250k limit), and the rest dumped in Progress Saver (or similar from another bank). Automate the monthly deposit requirement and a monthly withdrawal to avoid going over the 250k limit. Then sit back and relax.
Hey! Don't forget to collect $200 when you pass GO!
How to do that?
Was slow to join but finally did last month, good to see the rates are passed on in full.
Their no fees debit card is also a bonus, refreshing to see no more fees after international online purchase.
come on ING!
used to be able to do the $200 with an internal transfer, now they've changed it to be a $200 deposit from an external source.
So inconsiderate
Not that I'm aware of. It's always from external. I've used it when they first started.
Nah, I've done internal only since joining them - I haven't had any income into these accounts from external.
What do you mean by internal?
I don't know, I have always been transferring in from external to the uspend account then interval transfer to usave and it works. Suppose I could do directly to usave.
My salary is always deposit to USave, no need stopover at USpend.
Yeah good call. I've realised it's a useless step,as I don't plan on using uspend as a Daily account. Would ideally like them separate by some extent, but now NAB owns Citi. Citi still good as a global card by default and fee free so will keep that
does anyone know if ubank allow for non-tax residents? (am a citizen but will likely no longer be a resident for tax purposes shortly) Can't seem to get a clear answer from their call centre
Yes.. just that they will tax you 45% on the interest earned
https://www.ato.gov.au/Individuals/Investments-and-assets/In… - this suggests it's 10%. 45% i believe refers to not providing TFN.
If the country where you are going to reside has a Tax treaty agreement https://treasury.gov.au/tax-treaties/income-tax-treaties with Australia, interest income is 10% tax withheld for non tax residents and provide you have overseas address. Dividend is 15% for non franked amount. If you have the TFN given to the bank, you can do the tax return when the time comes and pay the taxes. I suppose if you don't do anything with the address, it just meant the bank card won't be able to reach you.
@fchis: Yep, i do understand that - there's typically some form to fill in so the bank is aware you're no longer a tax resident. All the majors have it, but i've found it quite difficult getting a straight answer from smaller firms. Technically there shouldn't be any issue for them (at least i don't believe so) but finding out for certain has been incredibly difficult.
No longer interested in contributing to the country that contributed to you?
FYI, I got an email last month advising me that they are closing my account due to me being a non resident for tax purposes.
Opened a Macquarie account online and transferred my money there for 4 months.
Really? just curious, Are you an Australian tho? Because on their website "To join us, you’ll need to be over 16 years old and an Australian citizen or permanent resident".
Yes I'm Australian currently living overseas, if you away from Aus for more than 183 days and you have nothing tying you to Australia such as PPOR, Job and paying taxes there you become a Non Resident for tax purposes and get hit with withholding tax on any money you make in Aus.
@adamm12: Thanks, yep, I'm aware of the non tax residents part. Does the country where you're staying have a tax treaty agreement with Australia? I think unless it's written in terms and conditions, they can't close your account.
adamm12,
which account was it with Macq. Bank did you open online as a non-resident?
For Macq, you can keep the account with an oversea address. i've asked them not long ago. Here is the reply:
"As part of our common reporting standard (CRS) requirements if clients indicate foreign indica we are required to confirm the following.
Tax status declaration
If living overseas the residential address for AML requirements.
Intention on return
Country of domicile
Confirmation of your Australian residency status to determine if non-resident withholding tax should be deducted.
Foreign indicia could be a foreign address, contact details or foreign ID on file.
Depending on how long clients are residing overseas there may be impacts to reissuance of debit cards.
It is important to note that we may contact you for additional information, like a copy of your Australian identification, if required."
Opened that saver account with 3.xx%, already had my interest paid for August, it was a great experience, did it all online and it got opened immediately.
Opened one with Citibank also but the opening process was a pain so I ditched them and went with Macq.
@adamm12: Just curious when does Ubank find out you become a non tax resident in Australia? I assume if you don't inform them, they won't know right?
right, so it's written in their terms and conditions.
https://cms.ubank.com.au/wp-content/uploads/usaver-terms-con…
"1. UBank USave Account
1.1 Eligibility
You’re eligible to open and hold a UBank USave account, if you:
- Are a personal customer (not a business or trust and not
using your account for business purposes);
- Are 18 years old or over;
- Have an Australian residential and postal address;
- Are an Australian resident for taxation purposes;
- Have an email address and Australian mobile phone number
(for joint accounts each applicant must have a different email
address)"
As for Macq bank account, they don't require you to be an Australian resident for taxation purpose.
3. Opening an Account and offset arrangements
3.1 Who can open an Account?
To open (and keep open) an Account, you must be over 12 years of age, reside in Australia at the time of application and have:
a permanent Australian residential address
an Australian mobile phone number, and
a valid email address.
As for AMP bank account, they don't require you to be an Australian resident for taxation purpose.
I've contacted UBANK via messenger. Here is the reply. So I suppose it's a new policy after their new platform has taken in place.
"Moving forward with our migration, we have reviewed our products and have identified that our new platform will no longer support customers who are overseas. If you have any further questions, please call us on 13 30 80 and one of our advisors will be able to look into this for you."
What shambles, new platform that doesn't support overseas customers, what a joke.
I think the reason is that it's costing them too much, I have saved 1000s of dollars with the card, even bought a Car with it, which in turn saved me at least $2k.
@adamm12: Exactly, have been with them when they first started years ago. It's true, they have given up a lot of customers doing this. You know AMP saver makes it easy to add overseas address with 2.6% currently ongoing. 250$ deposit a month criteria.
Common ING your next
Currently, is it worth putting money into an offset (current home loan interest rate is 3.44%) or with ubank?
3.44% > 3.35% - tax, no?
Offset. May as well pay off your debt. Why increase your taxable income like this when your debt is accumulating?
Always offset, your interest on a variable will always be higher. Also interest earned is taxable, so if you could pay 30-45% interest on interest
Unless you have a fixed loan with a 100% offset account at a rate significantly lower than the current best rate on savings accounts (to account for tax), you are always better off to keep your money in the offset.
Who are you with for your home loan? I'm getting 3.59% and I thought that was reasonable
Did anyone on here actually get the free socks that UBank promised if you shared your new card image on the socials? Ive hassled them twice and mine still havent turned up months later.
Other than that ive been really impressed with ubank app and speed of moving money sround is great! Ive gone through most of the major ones and ubank app has been the best for me.
I saw that promotion and was hoping to receive a card but haven't got one. I have a feeling it's for 86400 customers who are now UBank customers, and not yet for legacy UBank customers?
Where is rhat promo? Their socks are nice to wear I wouldn’t mind another pair
how easy is it to transfr 200k from my stg account into this?
Just to clarify. On 1st Oct your monthly interest will be 2.85%. On 1 Nov is when you will receive 3.35%
We've had this error and debate on the previous threads ("deals"). Read up on the application of interest comparing UBank and AMP.
Is it in the forum ?
I guess interest are calculated on daily basis so it will be effective 1st October itself
I knew this was going to happen. If Virgin don't increase their rate, then I'll have to give my 32 day notice.
how does this interest thing work ?? i have account with Anz and in Progress saver i got 50k in it and interest rate is 1.65% , but i got only like $58 in interest. I don't understand this.
should i open account with ubank and move all over there, how much i be getting ??
Open an Ubank spend account and USaver account together. Put $200+ from external source in the savings account this month and the bonus rate of 2.25%+base rate of 0.1% will apply to whatever it's in your USaver account starting 1 October 2022. Note: in between, move all your money to Macquarie account now, they give you 2.25% (3.1% for first 4 months) with no strings attached.
it says on ubank website .10 base + 2.75 = 2.85 or m i missing something!!!
You have to deposit 200+ in the previous month before you can collect the bonus rate.
new rate starts from next month
yeah you need to open the new format usave + uspend account.
Was only gettin 0.1% for the old usaver only (mind you intererst rates been horrible for ages)
The % interest is per year not per month. Larger % = better…..
Maths:
(50000/100) x 1.68 = 825 interest per year. 825/12 = 68.75 per month
(50000/100) x 3.35 = 1675 interest per year. 1675/12 = 139.58 per month
Move your money.
Reasonable for estimates, but for most of these kind of accounts that calculate interest daily - it would be probably be more accurate to divide by the number of days in the year, then multiply by the number of days in that calendar month. That would explain any dollar fluctuations month to month (rather than using a straight 12 as a divisor).
I felt that compounding interest was a lesson for another day
that make sense now, thanks mate, i am bad in this stuff.
so which one ?? what are hoops ?? does it effect me in any way, if i open account with multiple banks ?? and there is always a fee, if monthly minimum deposit is not done ??
Macquarie, ubank, virgin, ing, i read most of the comments, got these names.
so which one ?? you need to decide based on conditions
what are hoops ?? read the banks savings account info
does it effect me in any way, if i open account with multiple banks ?? the avg ozbargainer had 14 bank accounts
and there is always a fee, if monthly minimum deposit is not done ?? ?? read the banks savings account info
if you have small amount just use ubank whip in $200 each month piss easy, in fact just put yur pay in there. I you have no pay set up another bank acc and move $201 in on the 7th and out on the 14th or so, and if you feel the need to complicate your life try a ing / ubank hybrid
$139.58 per month by my calculations
Edit - just saw somebody else had already worked it out.
thank you everyone for all these comments and information, really appreciate and now i have some idea about this stuff , how this works and what is best for me after reading some more stuff.
Mate, with just current rate, Ubank is 2.85%. That's already twice the rate you get from ANZ. So you're lose out ~$60/month.
By next month, it'll be more.
If I was you, i move over to UBank now - unless you have some sentimental with ANZ. Take only few minutes to setup 2 accounts - one Save one Spend account.
i made my account this morning, and fk anz, they don't give anything and I don't have any sentimental with them, its just i get my pay and stuff with them , all the spending and bills, paypal etc. thats why i was just sticking with them. but now m moving my savings. thanks guys
Same. Most of my fund was shuffled last month to Maq Saving account with 3.1% - was with Citibank for a month before that.
I'll set up schedule to transfer to Ubank later this month.