Macquarie Bank Savings Account - are you happy ?

FrenchFrie on 01/09/2025 - 11:57

Hey, like a lot of you I've opened a Savings Account with Macquarie Bank in August following Ubank's shenanigans.
Today's they've paid me interest and the least I can say is I'm very not impressed…
To be completely transparent, I've put 40k in that account. They have paid me $146, which is already not amazing but I guess the rate is lower than Ubank even with the first 4 months bonus. But then they withdrew $68 as "TFN withholding tax deduction", leaving me with a whooping $78 benefit !
Is that normal ?
I've never had a bank withdraw anything before. Does that seem like a normal amount to be taxed at ?
Also does that mean that this month I have to increase the balance of that account by the amount of money they withdrew if I want to get interest next month ?
Thanks heaps

Financial Bank Account Savings Account

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Comments

  • scrimshaw on 01/09/2025 - 12:03
    +24

    If your bank doesn't have your tax file number (TFN), it will withhold tax from your interest at the highest marginal tax rate. You can claim a credit for the amount of tax withheld when you lodge your tax return.

      • Neoika on 01/09/2025 - 12:10
        +16

        I doubt there's any mainstrean bank that does not comply with it. You seem to be new in this area.

          • scrimshaw on 01/09/2025 - 12:18
            +1

            @FrenchFrie: You will need to declare (all incomes) on tax returns anyway. Might as well let the bank do it for you.

            In short, there is no benefit to not telling them the tfn. For any bank account that pays interest … let's just say it's in your 'best interests' to give a TFN. (badumtish)

            more discussion reddit https://www.reddit.com/r/AusFinance/comments/10twa6f/dont_fo…

            • FrenchFrie on 01/09/2025 - 14:47

              @scrimshaw: Haha love the dad joke.
              Thanks for the link, looks interesting, defo gonna have a read 👍

          • dtc on 01/09/2025 - 12:33
            +2

            @FrenchFrie: I suspect all the other banks just withheld the tax and paid you the balance of the interest, rather than paying you interest and then withdrawing the tax. As said, its a requirement for banks to withhold tax if you dont provide a TFN, unless you are underage, so the other banks absolutely did it to you as well.

            • FrenchFrie on 01/09/2025 - 14:53
              -3

              @dtc: Idk, I'm very surprised because 100% didn't provide my tfn and was earning roughly about $170 every months with the same balance.
              Not sure why I get down voted on my comments above but I ain't lying, what would be the point?
              Anyway, no more confusion I provided them my tfn and hope next month will be different 🤞

              • aboteh on 01/09/2025 - 15:12

                @FrenchFrie: If you put overseas address for your bank account, you then only get 10% non-resident tax, rather than the 47% TFN withholding tax deduction. I suspect you may have done this for your other accounts?

                • FrenchFrie on 01/09/2025 - 15:14

                  @aboteh: No I've always put my residential Australian adresses, but I recently changed visas and became resident for tax purposes, so that could be related!!

          • SmiTTy on 01/09/2025 - 17:08
            +1

            @FrenchFrie: 100% you've given them your tfn and you've forgotten. Either that or they're already withholding tax.

      • try2bhelpful on 01/09/2025 - 12:12
        +1

        When you opened the account it specifically asked you for your TFN. You should be able to claim it back at tax time when you do your return. I would go into the account details now and add it in.

        • FrenchFrie on 01/09/2025 - 12:13

          Thank you, will do! Does providing the tfn means I won't get withhold money at all from now on?

          • try2bhelpful on 01/09/2025 - 12:25

            @FrenchFrie: I’ve never had tax withheld from an account where the TFN has been provided. If tax is payable on the interest it usually gets swept up when you do your tax return.

          • loropy9 on 01/09/2025 - 12:56

            @FrenchFrie: When you provide the TFN to the bank, the bank will pass on to the ATO the interest you earned at 30 June each financial year. ATO will add that to your other income and will tax you accordingly.
            Without the TFN, the bank will treat you as a non-resident for tax purposes and withhold about 50% from your earned interest to pass it on to the govt.

            • FrenchFrie on 01/09/2025 - 14:44

              @loropy9: Thanks for that!
              Makes sense, thanks for the info 😊👍

      • jv on 01/09/2025 - 12:26

        I never gave my tfn to any bank and never had that happen before

        You might not get witholding tax if you are under 16.

        • FrenchFrie on 01/09/2025 - 14:45

          I'm more than double that 😂
          Somehow never had it happen before though

    • Dr Phil on 02/09/2025 - 20:41
      +1

      But the easy fix is simply to provide the bank with your TFN if you dont want withholding tax deducted.
      Its not the banks fault. Its your fault.

      So you should be not impressed with YOURSELF!

      The rate Macquarie pays is published in black and white.

      The welcome rate is currently 4.6% (variable)

      You either accept it or not.

      The dollar amount of interest is based on each of your daily balances.

      I dont know what you were thinking or expecting but its obviously incorrect.

      40,000 x 4.6% = $1,840pa
      Or $5.04 per day

      But not very month has the same number of days.
      August had 31 so $5.04 x 31 = $156.27.
      September has 30 days so interest on $40K would be $151.23

      So it seems you didnt have the full $40K in the account for 31 days
      More like 29 days by my calculations

      So go back and check on which day your $40K arrived into your new Macquarie bank account.
      Its not necessarily the day you effected the transfer.

  • Neoika on 01/09/2025 - 12:03
    +2

    You haven't provided TFN.

    I don't provide TFN to a bank in the case that I don't plan to use its saving account product. Otherwise, it is better to provide it.

  • jv on 01/09/2025 - 12:23
    +5

    are you happy ?

    Always…

    • Agarwal on 01/09/2025 - 13:26

      What about when the Pies lose

      • jv on 01/09/2025 - 13:37
        -1

        Heisenberg disagrees with you…

  • wwwwwwwwwwwwwwwwww on 01/09/2025 - 14:04
    -2

    Personally I appreciate the bank witholding interest to not be hit by any interest income surprises come tax time.

    • FrenchFrie on 01/09/2025 - 15:15

      Honestly fair, to each their own!

  • Stealtho on 01/09/2025 - 14:25
    +1

    as Larry

  • DingoBilly on 01/09/2025 - 15:46
    +7

    Your rate is spot on for what you'd expect… And with the bonus it's higher than what you'd get from Ubank.

    The TFN issue is user error and on you.

    So basically no, your issues are all caused by lack of understanding, not any actual issue with Macquarie.

  • ukulele on 02/09/2025 - 08:23

    they are far and away the best business saver account.

  • Caped Baldy on 02/09/2025 - 13:32

    Was that for a whole month? Fairly sure they'd calculate the interest daily so you'll get less.

  • tunzafun001 on 05/09/2025 - 17:02

    So dont see the interest rate actually applied, or the interest calculation anywhere in Macq statements or transaction list. Surely they need to publish this? Tried to call - they dont have a registered number anywhere on the website. Did a google search and found a number. But it just loops then hangs up. Tried the chat box, after 45min …still no response. So submitted a complaint…they can be contacted and transperancy is poor…time to move.

    What is the current recommendation? Looks like…

    Rabbo seem to be 5% <$250k
    BankWest 4.8%
    ING 4.8% - PFA purchasing on debit card required
    Westpac <29yrs old - 5% PFA purchasing on debit card required

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