# Best high interest bank accounts you use/have found



## Averagejoe101 (21 February 2014)

I remember a few years ago looking at HISA's (high interest savings account) that had as much as 7%.

Now all i can find if 5% term deposit and about 4.5 introductory 4% normal.

Has anyone found a higher one they use? This is purely for cash, not trading, so no need to be linked or anything.

Just looking for that high interest account for the small amount of cash. Rabobank seems to be the best but im sure there should be higher out there? Forum search only turned up stuff from years ago.

Also with inflation, over say 10 years would 4% even be worth it? As long as i paid into it regularly, be it small amounts, will that take inflation out of the question, compared to just leaving 50k in there and not doing anything for 10 years.


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## Bill M (21 February 2014)

The best online account around right now is the U Saver Ultra Account. It pays 4.62% if you meet their conditions, It has to be linked to your standard U Saver account (with minimum 10K in it) and you need to deposit $2,000 or more into it each Month.

If that can not be managed then a standard U Saver Account will pay you 4.26% P/A. The only condition with that one is you need to set up a Monthly Automatic Savings Plan for at least $200 P/M. 

I use the U Saver Ultra for the interest, yes it is a bit demanding with the 2K deposits but when you have a decent amount of cash it is worthwhile.

As for your other question, with inflation and tax you will lucky to break even but that depends on your tax bracket. If you are in the top tax bracket then you can kiss close to 50% of your interest income goodbye, the tax office will get that. Good luck.


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## Averagejoe101 (21 February 2014)

Bill M said:


> The best online account around right now is the U Saver Ultra Account. It pays 4.62% if you meet their conditions, It has to be linked to your standard U Saver account (with minimum 10K in it) and you need to deposit $2,000 or more into it each Month.
> 
> If that can not be managed then a standard U Saver Account will pay you 4.26% P/A. The only condition with that one is you need to set up a Monthly Automatic Savings Plan for at least $200 P/M.
> 
> ...




Thanks for that one. 4.26% beats 4% so thats what im after. $200 a month is no worry for me. I am in a high tax bracket, about 30-40%. I just need somewhere for my extra cash that is not going into property and shares. It will only be a small amount however i want to break even at least (or try too).

Thankyou for your response!


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## skc (21 February 2014)

If you have any property loans, the best interest accounts are usually offset accounts. With non-deductible loans you basically get a tax-free interest at your borrowing rate. With deductible loans it is still likely higher than the deposit rate.

If you don't have a property but saving for one, the first home saver account is worth a look. Although you do lose a fair bit of flexibility.


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## Averagejoe101 (22 February 2014)

skc said:


> If you have any property loans, the best interest accounts are usually offset accounts. With non-deductible loans you basically get a tax-free interest at your borrowing rate. With deductible loans it is still likely higher than the deposit rate.
> 
> If you don't have a property but saving for one, the first home saver account is worth a look. Although you do lose a fair bit of flexibility.




Im really just looking for the accounts for about 10% of my investment portfolio being cash. Just want ease of access when/if i need it.

I didn't know about the offset accounts. That might be something to look into later on  thanks for that.


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## pinkboy (23 February 2014)

Averagejoe101 said:


> Im really just looking for the accounts for about 10% of my investment portfolio being cash. Just want ease of access when/if i need it.
> 
> I didn't know about the offset accounts. That might be something to look into later on  thanks for that.




Will require less time and effort to set up an offset account to your current home loan, for more benefit and increased flexability, than opening a new account at a new bank for less benefit. 

pinkboy


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## trav365plus (23 February 2014)

I dont know if its possible. But wat about banks overseas. I hearbasian countries like china offer high interest rates. Chek it out.


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## pinkboy (23 February 2014)

trav365plus said:


> I dont know if its possible. But wat about banks overseas. I hearbasian countries like china offer high interest rates. Chek it out.




Problem here is your funds stability. You would need to know your funds are 'safe'. Whilst you may not know Australian banking law diligently, if a bank was doing something foul, you would more easily be able to employ a Soli and work through it systematically as you would have the laws at hand. Imagine trying to do that in some obscure country, with high interest and high corruption, in another language and a whole different set of rules. 

Too much risk if you don't know what you're doing here. Certainly not worth the risk for a measily few basis points when there are plenty of options close to home. 

pinkboy


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## sptrawler (23 February 2014)

trav365plus said:


> I dont know if its possible. But wat about banks overseas. I hearbasian countries like china offer high interest rates. Chek it out.




Clan you glive us slum suggestions.


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## treestump (31 March 2014)

Hi All,

Does anyone know which would be the best high interest account if you can only afford to put $300 p/w into the account, however, I have quite a large initial sum which I can put in?

Thanks


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## beachlife (31 March 2014)

Bankwest and ANZ.  Be aware that the govt guarantee is now limited to $250k, so any more than that at one bank is at risk.


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## galumay (31 March 2014)

treestump said:


> Hi All,
> 
> Does anyone know which would be the best high interest account if you can only afford to put $300 p/w into the account, however, I have quite a large initial sum which I can put in?
> 
> Thanks




UBank is currently the best, set up the Ultra Saver and I think its 4.62%, minimum $200 deposit per month.


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## Value Collector (23 September 2018)

Hey Guys,

Does anyone have a good interest earning account, I am looking around and there doesn’t seem to be anything interesting at all at the moment outside of the peer to peer lenders like rate setter.

I traditionally use offset accounts, but property loans have decreased over the years, so I have run out of capacity and need somewhere to store cash set aside for living expenses, taxes, open option position premiums etc etc. 

Any suggestions would be great,


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## galumay (23 September 2018)

As above, I use Ubank USaver Ultra. Its about as good an interest rate as is available. The mobile app is one of the better banking ones I have come across.


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## Bill M (23 September 2018)

RAMS Saver Account is paying 3% at the moment. There are some restrictions though. 

Link here: https://www.rams.com.au/savings-and-transactions/rams-saver/


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## HelloU (23 September 2018)

If you are talking a day-to-day account then agree with galumay. The only thing this cannot do is POLi. For the sole restriction of $200 in per month, then it does the things you expect a bank account to do, without complexity.


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## Value Collector (23 September 2018)

I am honestly thinking that because interest rates are so crappy, 

I would be better of taking out a loan, buying mix of shares paying franked dividends, and then depositing my cash in the offset account.

That way I will have access to my cash as needed.

And while the cash is in the offset account my interest rate is basically the franked dividends rate of about 5%+ as well as potential capital gain, 

Then if I have to pull my cash out for any reason, the system will still be positively geared and self amortizing.

Doing this I would end up with a kind of self created high interest bank account, where I can store cash as it flows in and out though the year, and even when The cash in the account reduces it is still operating as a self funded leveraged investment.


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