Churning High Yield Saving Accounts

fullmetal on 23/03/2023 - 09:24

Hi, interest rate going up and likely staying for a while. Its annoying some banks has introductory rate for new account only (some banks has a clause first savings accoutn only).

I am interested to know how ozbargainers are churning saving accounts to get the best rate and the best way of doing it.

Below are the banks I identified worth churning.

Saving acct Interest Rate Deposit Conditions
Rabobank 5% 250000 4 months, introductory
ING 5% 100000 Deposit $1000, 5 card purchases
Virgin Money Boost Saver 4.85% 250000 Deposit $2000, 5 purchases, money locked for 32 days for (bonus 0.3%)
Macquarie 4.65% 250000 4 months, introductory (once only)
Ubank 4.60% 250000 Deposit $200
St George, maxi saver 4.60% 250000 3 months, introductory (once only)
ANZ Save Plus 4.25% 250000

Financial Bank Account Savings Account

Comments

  • cashless on 23/03/2023 - 09:39
    +5

    You wouldn't need to churn ING, Virgin, Ubank or ANZ as they are all ongoing rates involving some "hoop-jumping" on your part.
    The only savings accounts you might want to churn are those with introductory rates.
    These are all clearly laid out in the WP spreadsheet

    • fullmetal on 23/03/2023 - 09:42
      +1

      Thats very helpful. Didn't know this spreadsheet exist.

  • Donaldhump on 23/03/2023 - 09:40
    +1

    um why would you churn the ones with no introductory limit.

    • fullmetal on 23/03/2023 - 09:45

      You are right, the non introductory one will be the base while churning to the account with the highest rate are usually introductory.

      • Donaldhump on 23/03/2023 - 09:46

        ing is all you need / or ubank

  • Seraphin7 on 23/03/2023 - 09:44
    +1

    For starters, how much cash are looking to deposit? If less than $100k, the ING is going to give you the best rate you can find with limited catches.

    If more than $100k, the first $100k goes to ING and then it's Rabo for the first four months and then over to Virgin after that so long as the hassle there isn't too much on their catches. Although for four months, the extra 0.15% at Rabo isn't actually going to work out to anything material.

    • fullmetal on 23/03/2023 - 09:49

      Let just say i need at least 3 base account deposit. ING and Ubank seems like the best base. The rest will have to churn around.

      • Seraphin7 on 23/03/2023 - 09:54

        So you've got somewhere between $500k and $600k to deposit?

        On that basis, it's $100k to ING, $250k to UBank, and fiddle about with what's left. Or otherwise, if you can't be bothered with the hassle look at one that's got an introductory rate, but from a high base rate and just leave it there (assuming the whole balance doesn't change).

      • netjock on 23/03/2023 - 09:57

        Judo bank term deposit up to 5% (5 years) and think you can do $250k.

    • KangaDrew on 23/03/2023 - 12:28

      Virgin's "savings" account is a term deposit wolf in sheep's clothing. Between that, their horrendous customer service and an app that is constantly under maintenance and full of bugs, ING is a much better choice.

  • netjock on 23/03/2023 - 09:46

    Depends on how much money you got?

    I have it in Ubank and Virgin because for short term until I come out of fixed on my home loan and put it all into offset there. The loss when I withdraw from ING wouldn't make sense for me.

    That is because mortgages at even 5% after tax money is like 9% interest rates, there is no way getting that in some savings account. Going to flog the mortgage within an inch of it's life.

    • fullmetal on 23/03/2023 - 09:50

      Let just say i need at least 3 base account deposit. ING and Ubank seems like the best base

  • Vulgar on 23/03/2023 - 09:49

    I put very little money in the bank. Most of it goes to index funds.

    • fullmetal on 23/03/2023 - 09:51

      I will be putting them to index funds, just not comfortable putting one whole chunk in it. Prefer DCA over a long period of time.

      • netjock on 23/03/2023 - 09:55
        +1

        You actually make more money putting it all in regardless of market. There is actually an article. DCA only for those who don't have up front lump sum (2/3 of the time)

        Here is article

        Believe the poster you have on the wall is (S&P500 is 10%, ASX 9% over long term, so chuck into mortgage if it is screwing you more than 9%)

        Vanguard Index chart poster

        • onetwothreefour on 23/03/2023 - 10:12

          You are correct but the OP is talking about 500 - 750k. You'd have to have balls of steel to put that all in the market in one go, especially the way it's looking at the moment. I've got way less invested than the OP and even I get nervous.

          • fullmetal on 23/03/2023 - 10:20

            @onetwothreefour: Yes, that is exactly my thought. I won't be able to sleep well.

          • netjock on 23/03/2023 - 10:23
            +2

            @onetwothreefour:

            You'd have to have balls of steel to put that all in the market in one go

            Don't need balls of steel if it is a 66% chance of making more than DCA (which is 100%). Chances are well stacked in your favour.

            Only problem is timing which is you won't be guaranteed 4.5 - 5% this year but over the long term you'll be getting 9% (ASX)

        • JIMB0 on 23/03/2023 - 21:38

          By that logic you should be borrowing to the max and investing it. Looking at historical data it would have worked out well even you bought just before a big crash (2007). The only trouble is hanging on and servicing the debt when the markets go backwards and dividends stop coming. The sleep at night factor is low, your need to be in it for the long-term.

          • netjock on 24/03/2023 - 10:07

            @JIMB0:

            By that logic you should be borrowing to the max and investing it

            Isn't that what people do with property? 80% LVR and dividends are same as rental income?

            Obviously you haven't gone past week 2 of finance 101.

    • netjock on 23/03/2023 - 09:52

      Actually a good time to buy when everyone is freaking out. Just got to pick the days. DOW was up 500 point over 2 days. Now down 500 pts last night.

    • Donaldhump on 23/03/2023 - 10:52
      +1

      everyone should have some cash in their portfolio

      • onetwothreefour on 23/03/2023 - 11:01
        +1

        3 - 6 months expenses emergency fund is the usual amount.

  • mehow on 23/03/2023 - 10:23

    Easy, setup up a reminder when it expires and churn online.

  • mehow on 23/03/2023 - 10:28
    +1

    Also, check it falls under the FCS for the Govt protection

  • payless69 on 23/03/2023 - 11:32
    +1

    Any Rabo speedies out here?
    They are sending a RSA token in the mail. Feel a bit stone-age!

    • mehow on 23/03/2023 - 11:39
      +1

      Yeah so old school. Got the hard token in a cool envelope 2 days after opening online

  • Drakesy on 23/03/2023 - 12:47

    Just chuck it into ubank, set and forget

  • joe88 on 23/03/2023 - 17:59
    +1

    I went through this last year after selling a couple of properties to fund a PPOR purchase. A few things to keep in mind:

    • Several of the banks require you to make a minimum number of purchases on the included debit card. These transactions need to have cleared (not pending) to be eligible. I got caught out once with a supermarket transaction that was still pending after 4 days.

    • Read the bonus criteria carefully as it differs quite a bit from bank to bank and can catch you out. e.g.: for some banks, you achieve the bonus for the month in which you meet the criteria, for others it's the following month.

    • BoQ/Virgin customer service was hopeless. Wait times well over an hour if/when you need to speak to someone. The app also seemed to be frequently down/unreliable.

    • Some banks have quite low daily transfer limits although most have a way to temporarily increase. Shifting money around after bonus rates expire can take quite a bit of time (due to daily limits). You also need to plan how you will access the funds if you're planning to take advantage of a sharemarket buying opportunity, property settlement, etc.

    • I found Macquarie the easiest to use. You can create new accounts on the fly and the 'stepped rates' apply independently to each account. i.e: if you have a few accounts of <= $250K they each earn 4%. Bonus rate only applies on your first account.

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