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4.50% p.a. Advantage Saver Account (on Balance $100,000-$750,000 & $250+/Month Balance Increase Req'd) @ Great Southern Bank

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Great Southern Bank has increased a range of savings accounts by between 0.60% and 0.70% to remain competitive as one of the market leaders.

The Advantage Saver account is significant, given it is for savers with larger balances from $100,000 to $750,000 simply requiring a balance increase of $250 per month.

Applicants must be over the age of 18. Available to new and existing customers. Only one account per customer. Interest is calculated daily on whole balances and paid monthly. Rate applies on a stepped basis. Refer to the interest rate schedule for current interest rates. Bonus interest is applied on top of the base rate if the balance of the Advantage Saver account increases by $250 by the end of each calendar month (excluding interest payments, withholding tax and fees).

Read more: https://www.savings.com.au/news/gsb-savings-account-increase

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  • +9

    right, just rang to get clarity…the ASA you need to grow by $250+ anytime in the month from the balance on the 1st of the month (more than the last day of the previous month….interest is credited on the last day of the month….so that will give you the amount you need to grow your account by) This will then trigger your bonus interest for THIS month (same as Ubank)…the stepped interest. Don't grow your account by $250+ that month, get base rate, grow it by $250+, you get the bonus rate of 4.4% total ON THE FIRST $100k, THEN any higher amounts you have are at the bonus rate of 4.5%…..so it is not 4.5% on the whole amount if you have more than $100k but only the amount ABOVE first $100k
    there is nothing at this point to alert you that you have triggered the bonus rate (like Ubank)….which is annoying….as you have to keep the balance at least $250+ above the starting balance at 1st of the month until the last day of the month.

    You can also open a Home Saver account and $100k there gets 4.65%, as long as you transfer $2000 from an outside source to the Edge transaction account and do 5 card transactions per month….again this just needs to be done for the current month to get the bonus….card transactions like ING (I just do 5 x $0.01 taps at Woolies or Coles to get that done for ING early in the month to get it out of the way) and must be settled before the end of the month….so best to get them done early in the month to be sure
    Transfer limit if you ring for them to do it $250k per day…so if you need to transfer large sums, that is the way to do it

    • souths123 Do you agree that a $250 auto deposit 15th of every month and never withdrawals would work? Thanks. Le Peck

      • +1

        as long as the last day of the month you are up by at least $250 compared to the opening balance on the first day of the month, you will be fine. You can use the account and it can dip lower but just ensure it is up by $250 last day

        • Pro tip - Given this and the fact that interest is calculated daily, you can avoid locking in the bulk of your funds and the need to inject fresh funds monthly by:
          1) opening month - deposit $X
          2) last day of the opening month - move $X-$250 (call it $Y) to another account
          3) first day of the second month - move $Y back into this account
          4) rinse and repeat. (until your "movable" amount drops below $250)

          Positives -
          1) No need to keep injecting new funds into this account
          2) you are free to use this "movable" amount (i.e. you can grow or reduce it from month to month)

          Negatives -
          1) no second chance if you forget to move the funds out on the last day of the month
          2) cannot set and forget the monthly withdrawal/deposit (i.e. recurring transfers) since amount is different each month (but you CAN set many single future transfers in advance)
          3) you loose one day of interest on the bulk of your savings (can be minimised by moving it to another interest bearing account like Ubank save)

    • Thanks for the info. Do you know if it's instantly accumulating interest if I signed up now and deposited $250, or does it start accumulating from next month?

      Cause bank of Queensland seems to be the instant model whilst ING is applicability for the next month

      • +2

        as long as you add at least $250 to a new account, it will count (as you are starting the account with $0) As far as I know it is for the current month, not the next month

  • +4

    To be clear it's a $250 balance increase.

    Edit: I like how there's no required linked transaction account though.

    • +2

      I thought the same yesterday before I opened an Advantage Saver account, but surprisingly, a transaction account was also created.

      Perhaps I missed something in the application, but I don't recall being asked if I wanted the transaction account.

    • +9

      To be even clearer the balance must increase by $250/month exclusive of interest, ie you must deposit at least $250/month on top of your initial /existing balance according to this:

      Applicants must be over the age of 18. Available to new and existing customers. Only one account per customer. Interest is calculated daily on whole balances and paid monthly. Rate applies on a stepped basis. Refer to the interest rate schedule for current interest rates. Bonus interest is applied on top of the base rate if the balance of the Advantage Saver account increases by $250 by the end of each calendar month (excluding interest payments, withholding tax and fees).

      OP should add this important rider to his statement.

      simply requiring a balance increase of $250 per month.

      • +1

        Given this statement, it should be ok to withdraw the interest amount each month? i.e. last month interest earned was $500 so this month I can deposit $250 AND withdraw $500?

        • +2

          Nice loophole but they'll probably say that's not what it means. Tell us how you get on.

        • +3

          May be easier to understand if they say: balance must increase by $250/month in addition to any interest earned.

          • +1

            @browser: Likely what they mean but you never know.

  • 0.5% base rate, with one of the following bonus rates based on balance:
    LT 100K: 3.9% (so 4.4% total)
    100K - 750K 4% (so 4.5% total)
    GT 750K 3.4% (so 3.9% total)

    so pretty decent even if you're not in the sweet spot.

    • +5

      Fine print says "Rate applies on a stepped basis". Does this mean your balance from 0-100K earns $4.4% even though total balance is say $250K? Can OP clarify?

      • I took it to mean the rate varies according to your balance, as per the 3 tiers mentioned. But yes you should clarify with the bank exactly what all terms mean (OP is from a ratings/advice/referral FS agency it seems).

      • +3

        Does this mean your balance from 0-100K earns $4.4% even though total balance is say $250K?

        This is exactly what it means, according to their cust rep. And the rest of your 250K will earn 4.5%.

        The cust rep was pretty sure of this but still went to get confirmation about this from his superior.

      • Yes that's correct.

        The website even says

        Enjoy a combined 0.50% p.a. base rate and bonus 4.00% p.a. on balances between $100,000 and $750,000

  • Good rate!

  • +21

    It really annoys me that the base interest rate on products is not 3% or something in line with the cash rate. The idea that if you dont up your balance you get 0.5% is nuts. The bonus should be less than the base rate. Not the other way around.

    • +2

      Like last month when I forgot to deposit $1 to my savings accounts and lost hundreds of dollars in interest….

      • +8

        I set up automated transfers for this reason. Sorry for your loss. Trust nobody, not even yourself!

    • +1
    • +2

      Agreed. For anyone looking for the best balance of decent interest and full flexibility, Macquarie pays 3.7% (soon to be 3.8%) on all balances across all transaction and savings account balances up to $250k

      • I've been a big fan of Macquarie up until this week when they took $5k out of account due to a 'system glitch', and 3 days later still haven't returned the funds…
        Hope they sort their sh… Stuff out

      • That's low compared to ubank who is super flexible

      • Even though I like their website and app, their rate leaves a lot to be desired, even compared to the big 4 who are lifting to 4%.

      • When is this rate increase happening? I must agree I like their flexibility. I have savings account and direct everything from one account. No hoops.

    • +1

      Chalmers has asked the ACCC to shine the spotlight on bank savings interest. Hopefully they will "encourage" banks to do (much) better.

    • This is where they get 'the cream' and I agree with you Fergy. It is unacceptable. And a lot of pensioners and others who have trouble following the complex details lose out big time.

      • +1

        Yep exactly.
        I just had to sit down with my parents on the weekend to go through what their best option was. Explaining how balance increase is not the same as deposit x amount and all the little neuances to each product was exhausting.

  • can we have both the homesaver and this one?

  • +1

    $100,000 to $750,000? What is this new devilry?

    • Joe Hockey endorses this savings account..

    • For people saving for a mortgage, this is a pretty good deal. Only other option is to split money between multiple different banks..

      • +1

        Don’t forget the FCS

  • +6

    Luckily i have spare $750,000 change after buying my $2,250,000 rolls-royce yesterday

    • You still need money to pay for on-road costs

      • 4.50% P.a. interest should do it = $33750

  • +3

    This looks easier than the ING one where you have to make a bunch of transactions

    • Yeah - I'm considering swapping and consolidating… Only concern is whether Great Southern Bank will carry across further interest rate hikes or not.. ING has been pretty good with that. Should expect a further 0.5-0.75 increase over the next 3-4 months.

      • -5

        0.5-0.75% would send the economy backwards. Most banks appear to expect around 0.25% this year before an easing in 2024

        • and yet the BBSW is hovering around 3.85 in 6 months, so money/mouth

          • @Jay-Ros: My bad. Was thinking post the next two rounds where there will almost certainly be small increases. ~3.8% in 2023 (+0.45%) appears to be the expectation.

        • 0.5-0.75% would send the economy backwards.

          Well, if people don't stop spending like crazy then RBA may stop until then its BAU for them and the rates will go up by minimum of 0.5 if not 0.75.

          Most banks appear to expect around 0.25% this year before an easing in 2024

          Don't even go there, CBA expected peak of 2.85 back in Sep 2022 and in anticipation were offering 4.99% fixed rate for 4 years. This offer only lasted about 6 weeks. So what some banks are expecting is merely a wish!

        • +4

          Latest forecast from big 4 suggests otherwise. A minimum of 0.5% is expected but market expects a 4%+ terminal cash rate.

        • +1

          That's just not true.There was already +0.25 this month. We're at 3.35 right now - most conservative estimates at the moment are for us to get to 3.60 in march (Another 0.25%) and hold. Other estimates get us to 3.85-4% and hold.

          We're looking at another 0.25 hike at minimum, but most likely 0.5-0.75, with maybe a few holds between rises.

          These are all estimates - they've been wrong in the past, and could be wrong now. But it's grossly incorrect to say this 'would send the economy backwards' when these estimations are coming directly from the major banks..

          • +1

            @mahdoo: Not really sure where you are getting your info from. The market is currently pricing in 3 rate rises. Curve will be slightly lower this at close of business today but this will give you the picture https://www.asx.com.au/data/trt/ib_expectation_curve_graph.p…

            • @Snoopy113: From what I can tell - that graph is in line with what I'm saying. Could you be more specific on where I'm wrong?

              Feb - 0.25% increase to 3.35 cash rate https://www.rba.gov.au/statistics/cash-rate/

              banks are estimating we get to ~3.60-4% and hold for a bit before dropping down again - as described in that graph. (Which is demonstrating the high end of the estimations)

              • @mahdoo: Oh damn! Sorry, i just realised im replying to the wrong person! Sorry! Your statement is correct!

          • @mahdoo: That's what some financial commentators are saying. Google and enjoy. It's not just interest rates but the fact that 800K home loans are coming off low fixed interest, and that the Reserve Bank isn't allowing for lag in indicators like spending and investment etc.

        • Wot ? Quite a few have 3 more rate rises penciled in. For example CBA thinks 4.1% (that's 3 more at 0.25%), in the words of their CIO of private banking in the AFR yesterday. That's the third article I have read in the last few days suggesting 3 more at least and possibly more. Cherlle Murphy (and economist) in the AFR (12/2) was saying it needs to be much higher again and certainly above the inflation rate (which is what ? 7%-ish) because never in history has inflation been tamed with an interest rate below the inflation rate. As she points out,business lending is STILL expanding when they need it to contract.

          The RBA has said multiple rate rises but who knows? certainly not them, or me

          but as a debt free Gen X with a modest apartment, I say have at it…

          • @ruprectaus: Didn't read the AFR commentary but as inflation is based on retrospective data there's no simple way of knowing where the interest rate should land for best effect. Certainly no sane commentator would suggest the rate should immediately be ramped up up to 6+% to follow that rule of thumb.

            According to some commentators the reliance on "old" data (and complacency) is what got the Reserve Bank and Lowe into trouble in the first place and why it's had to ramp up rates recently. An ABC private industry financial expert was suggesting on radio earlier this week that even now it appeared the RB wasn't paying enough heed to that data lag. Possibly once bitten twice shy.

            The risk to economic stability/growth is not where interest rates eventually land but in sudden large increases and the obvious roll on effects. 0.75% in 3 months would be a major dampener and I personally highly doubt it's likelihood. Will be interesting to revisit this deal near the end of May.

      • +1

        If they don't lift rates, can't you just transfer back or to another bank?

    • 5 ING card transactions a month should be easy for most people. The complexity is in ensuring your balance is larger that last months'.

      • What if you go overseas for 1 month? Could you use the ING card without massive currency conversion fees?

        • Iirc, ING refunds OS transaction fees, uses the daily exchange rates set by VISA. You should confirm with the bank.

        • +2

          Two tier authentication might be an issue OS. Worth knowing about.

          https://www.traveller.com.au/twofactor-authentication-overse…

          • @Igaf: Read that article & it misses the blindingly obvious point. If banks & financial institutions insist on 2FA using SMS then the only way it works when overseas is to force telco providers to allow authorisation texts, even if you don’t have international roaming as part of your plan.
            Just needs all telcos to commit to allow certain SMS when overseas
            Really shouldn’t need to spend money on travel sims if this was implemented

            • @cashless: Chances of that are very slim.

            • @cashless: I got mostly around this problem by choosing before departure an Australian telco which offers VoWIFI. This allows receipt of sms overseas for free. But yes you need to be connected to any wifi service for it to work.

              Note just because telco offers VoWiFi (VoLTE) doesn’t always mean that sms will also work, eg ALDImobile offers VoWiFi but not sms. Colesmobile does work with sms overseas with VoWiFi. I’m sure that there would be others, but I have not checked-just ask!

            • @cashless: 2 factor SMS should be outlawed for any financial or government institution, it's embarrassing that security relies on an unsecured messaging system for authentication

              We're going to get a hack from this obvious stupidity and only then will they'll say "who could have know"!

          • +1

            @Igaf: Di they still rely on sms for 2FA? That’s ridiculous. Sms are waaaaay less secure than an authentication app like Macquarie has

            • @Nedkellyinthebush: Who's "they" Ned? Obviously a few FIs use SMS, including ING. ING claims to have background security systems in place also. I don't know what arrangements they'd provide for customers OS because I haven't been out of the country recently. Just something to be aware of.

              • @Igaf: I was stationed overseas for 3 years (got back two weeks ago) and used my ING card everywhere. Never had a problem or a need to use 2FA (which was lucky because I didn't have roaming either).

                • @Lunarboogie: Good to know, thanks Lb. 2FA isn't used on card purchases or cash withdrawals under a set amount here, only for particular types of transaction. Obviously if you're travelling it's a good idea to advise your bank and ask them about any potential problems and risks. And have a backup plan of course. Or, wing it!

  • +1

    Two questions, I'm clueless at this stuff -

    I currently have my home loan through GSB - is there any benefit to that whatsoever to open a savings account?
    Should I go for this if I have under 100k? I'm thinking with an account already with them I may as well?

    • +4

      If you have a home loan, you're usually better putting your money into that as redraw because the charged interest you save is greater than the interest you earn. For an investment loan I think there are tax implications with redraw and offset is better if your loan offers it, but the same point applies.

    • +3

      Do they have an offset account? If so look at that. May better depending on your home loan rate and tax rate on your savings interest earnings.

    • assuming you don't have offset account and just redraw facility?
      offset is essentially a savings account where the interest rate is equal to your home loan rate (therefore any money in your offset reduces your loan balance)
      redraw just means you can withdraw money from your loan account, as i assume you are just putting as much money into the home loan as you can? if this is correct, keep doing what you are doing is my suggestion
      if you want an offset you'll most likely need to apply again to get it swapped plus pay fees in the process.

      • Thanks for the replies - I definitely should have mentioned the homeloan is fixed rate so no offset, only redraw. Other info I should have added is that my partner and I still don't have a shared bank account hence the curiosity from this deal.

        We've been using the redraw account, but I'd rather that really only be for deposits as opposed to general use (though this thinking could be way off). Should I just get a couple of bank cards linked to the redraw and call it a day?

        • Compare the two interest rates and your tax liabilities (can split interest income with partner on joint accounts) with this one, then weigh up the convenience.

        • So you can't get an offset facility on the fixed loan?

          It might be available, but some do adjust the rate or charge a fee which counters the effect.

  • -5

    noice, 4.5% interest rate with a chance to lose it all.

  • +3

    Thank god. Finally, as an under 30 Ozbargainer earning $250k+ I finally found somewhere to stash all this cash. Thank you!

    • You should have stashed it in an appreciating investment vehicle (I don't know whether it is a BMW or Tesla these days) but obviously because I don't make $250k+

      Funny thing about making $250k+ is your tax on super contributions is 30% :D

    • -3

      The type of idiot that gloats about earning $250,000+ is the same type of idiot likely to lose it all within a year. I know of plenty of people who’ve earnt $1m+ only to lose it in short order, either through irrational spending patterns, reckless investments or addictions of some sort.

      My best advice to you? Get help and stop geeing yourself up, because what you earn is peanuts versus the under 30s I know.

      • +9

        Check his profile pic, it tells you everything you need to know. You don't have to take him too seriously.

        • +2

          What?!?! Sir, I assure you I am sincere.

      • +1

        How can you not detect the sarcasm dripping from that comment?

      • what you earn is peanuts versus the under 30s I know

        yea well, my dad can beat up your dad

        • My dad can beat up both your dads :)

          • +1

            @nadan: Just what we don't need - 3 daggy dads with walking sticks at 10 paces.
            0% interest in seeing that one! But 3 yummy mummys ….I'd like to see that!!

  • +1

    Thanks O.P. I'm already a CUA customer and have just added an Advantage Saver account to my profile. Will now transfer the majority of my excess offset balance (mortgage is already fully offset) into the Advantage Saver in order to start earning that delicious interest. It's also cool that you can set up a monthly auto deposit so that you don't forget to top the balance up by at least $250 and miss out on the bonus interest.

    • +2

      Do you qualify for the highest rate on opening in the first month? Without having to meet the conditions.

      • Good question. Everyone is finding these possible loopholes. They need to clear up the product overview a bit.

        • +1

          not sure if you can see the current applicable rate on your GSB app. I know some banks will offer the highest rate in the first opening month.

          • +1

            @asc: Rate doesn't appear in the app.

    • +1

      don't forget you will pay tax on the interest in the new account…the offset advantage is it is tax free isn't it? (I've never had one as they weren't around when I had a home loan) Just check that first

      • +1

        Correct, any interest earned on deposits is added to your taxable income whilst interest saved by way of offset accounts has no tax implications. If your loan is fully offset, it makes no sense in having any excess funds (above and over the outstanding loan balance) languishing in the offset account and not earning any interest.

  • +2

    Anyone know if this applies for the first month as well?

    • That's the way it reads, as long as the first month closes with a balance >= $250

  • HSBC now offering 4.5% for 3 months with no strings from what I can make out
    https://www.hsbc.com.au/accounts/products/everyday-savings/

    • +10

      3 months sounds like a string to me

    • +1

      three months only for new accounts only, and who knows, you may be stuck on 4.5 percent for that entire time whilst the RBA continues to raise the official cash rate……

  • +2

    Does anyone know what is the maximum transfer per day?
    If 5K maximum from this bank that’s a pain!

    • +4

      30K, but you can ring them to increase it further.

      • Do you have a link that confirms they'll raise the limit higher than $30k?

        • +4

          I don't have a link as such, but when I go into my account to increase the limit I see a max of 30K available and it clearly says: " Need to set a larger limit amount? Call us on 133 282."

          • @bgazer: Ok thanks. I couldn't find anything on website but I'll take your word for it

  • Hi,

    I got a silly question and didn’t want to create a separate thread. I enrolled into the Macq Bank 4 month introductory savings account which was 4.5%. I’m a month away from the final rate and after that the rate drops to 3.7% I think.
    Aren’t Macq bank increasing their variable interest rates which should be more than 3.7%? If not should I move to another bank?

    • They did increase it. To a less than desirable 3.8%. I'll be moving to another bank probably.

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