ING High Interest Savings Interest Calculated? Citi Pay All Hack?

RickyBobby45 on 11/08/2023 - 12:35
Last edited 11/08/2023 - 12:38

Does anyone know how the ING savings Maximiser interest works?

I understand that it is calculated daily and paid monthly

i also understand that each month to earn the bonus interest the opening balance must be higher than the previous months closing balance

but would it be at all beneficial to do the following

deposit 20k into the maximiser on day 1 of the month

transfer say 19,950 out of the maximiser 1 day before the end of the month

would you receive the interest for the 29 or 30 days of the month that the 20k was in there?

The reason i ask is that I have access to Citibank Pay all that allows transferring large amounts of cash from credit to a bank account
i’m wondering if i can leverage this to earn extra interest

obviously the credit needs
to be repaid each month - hence needing to transfer the amount out of the account before the end of the month - but could it sit in the ING account earning interest for 29 or 30 days before being repaid

would that work?

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Comments

  • El cheepo on 11/08/2023 - 12:38

    As far as im aware, the end monthly total needs to be higher then starting total.

    I also cant quite recall, but swear I’ve seen it in their t&cs that the total needs to always increase* (eg: no doing what your describing)

    *Source needed 😅

    So nope.

    • El cheepo on 11/08/2023 - 13:06

      Just checked the basic t&cs in my online banking… just says grow your balance from July’s closing balance.

      So maybe you can 🤷🏽‍♂️

  • RickyBobby45 on 11/08/2023 - 12:41
    +1

    yep but that’s why you don’t take the full amount out so each month the account is growing by a real $50

    opening month balance 50$
    closing balance $100
    next month closing balance 150
    and so forth

    it’s just between day 1 and day 29 the account has 20k or so in there ‘potentially’ earning interest daily

  • CyberMurning on 11/08/2023 - 12:46
    -1

    why ing, not some mortgage offset account?

    • CodeXD on 11/08/2023 - 13:01
      +4

      Because not everyone owns a property.

  • capslock janitor on 11/08/2023 - 12:55

    noice

  • CodeXD on 11/08/2023 - 13:00

    deposit 20k into the maximiser on day 1 of the month

    transfer say 19,950 out of the maximiser 1 day before the end of the month

    would you receive the interest for the 29 or 30 days of the month that the 20k was in there?

    You're forgetting that you need to pay back the $20k to citi lol

    Yes it will work but to be safe (taking into consideration public holidays and weekends), I would recommend you go for ~26 days as citi will take payall amount from your account 3 days before it is due, and it can take up to 3 days to transfer the money to citi bank too.

  • Hugh G Rection on 11/08/2023 - 13:47
    +1

    citi is 6.9%, and this is 5.5%

    wouldn't you be losing money?

    • RickyBobby45 on 12/08/2023 - 07:53

      citi is 0% at the moment has been for a while now

      they will eventually charge a fee but not till end of the year i think

  • capslock janitor on 11/08/2023 - 13:49

    Wait aren't Citi shutting?

    • RickyBobby45 on 12/08/2023 - 07:53
      +1

      only their retail banking - nab bought it out

  • coffeeinmyveins on 11/08/2023 - 14:01

    Does anyone know how the ING savings Maximiser interest works?

    Their T&Cs do explain this…

    would that work?

    Possibly. Only one way to find out, report back.

    • plmko on 11/08/2023 - 17:24

      But why read important T&C's when I can rely on random internet people on a bargain website to facilitate my life savings.

      • RickyBobby45 on 14/08/2023 - 16:55

        Thanks for your input champion! adding plenty of value here
        please keep it up

  • trashcan on 11/08/2023 - 14:25

    Here is the most optimum way to earn some free interest.

    Assumption - Citi Card has a 61 k Limit

    Do 4 recurring Pay all spread 7 days apart (eg 3rd, 10th, 17th, 24th) for 7.5k
    After the first month you will have 30k in your bank account

    BPay 7.5K to your credit card on the 1st, 8th, 15th, 22nd ( 1 day before the the Pay all is processed. Have to tweak it every month to take weekends and public holidays into consideration) in the 2nd month and every month thereafter.

    You will end up with 22.5K earning interest for the full month and 7.5k earning interest for part of ther month until your recurring payments expire.

    • leiiv on 11/08/2023 - 16:52

      What is the benefit of splitting the payment into 4 parts?

      • trashcan on 11/08/2023 - 16:59

        Free Cash flow of 22.5K locked in until recurring payments expire. Will not make a difference if you intend to keep the money in savings account. Becomes useful if you want to deploy the funds in other investments or repay some other high interest loan

    • RickyBobby45 on 12/08/2023 - 07:54

      very cool!

  • leiiv on 11/08/2023 - 16:59
    +2

    Too complicated, just put into Ubank or Virgin money. I think the 0.5% difference is not worth the trouble.

    • RickyBobby45 on 12/08/2023 - 07:57

      well it’s potentially adding around 120-130$ a month in ‘free’ interest for not a huge amount of effort once it’s all setup and automated

      and this is ozbargain!!

  • El cheepo on 12/08/2023 - 23:12

    Food for thought op:
    https://www.ozbargain.com.au/node/793450

    Watch out for that interest 🫣

    • RickyBobby45 on 14/08/2023 - 16:54

      that’s pretty standard - sucks OP didn’t know that but yeah i’m not surprised or shocked by that at all - that’s how it is and how i’ve understood it for like decades…
      always, always pay the closing balance as per the statement to avoid interest 🤷‍♂️

      • frugalftw on 08/10/2023 - 21:09

        Hey @RickyBobby45, just come across this thread, did it work? Couldn’t pm you.

        • RickyBobby45 on 14/10/2023 - 14:54

          Yes worked great! although citibank are making citi pay all a paid service after 30 october so this doesn’t make
          much sense to do after that as the cost negates the benefit of the interest earned

          • frugalftw on 14/10/2023 - 15:33

            @RickyBobby45: Thanks. That leaves a bit of time for me to set it up still :) It didn’t let me send the money to myself tho. I guess I can use a random account name to bypass that.

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