Highest Interest Savings Account

[TraderPro]

Under the depositor protection provisions of the Banking Act 1959, depositors in Australia have first claim to the assets of an ADI in Australia should an ADI be unable to meet its obligations or should it suspend payment. To support depositors’ interests, ADIs which take retail deposits in Australia are required to hold assets in Australia at least equal to their deposit liabilities in Australia. The depositor protection provisions, however, do not confer any form of guarantee of depositors’ funds, and depositors have no recourse to APRA or the Government."

Thanks rub92me - the best response to my first question!

So here in Australia it is slightly riskier to have your cash in a bank compared to having cash in a bank in the USA (since they have a law saying the government will reimburse any losses from any bank collapse).

It's nice to know that the banks that do take deposits in Australia are required to keep assets that are of at least equal to the value of deopsits.

Cheers!

 

[toc_bat]

am wondering how one accesses their money with these no fees online accounts? do you get a debit card? or do you need to maintain another account and transfer money in and out of that other account?

bye

j

 

[Smurf1976]

With ING (not sure about the others) you just keep your ordinary transaction account with a regular bank. Using the ING website, you transfer funds in either direction when you wish. It does take a couple of days though - if you put in a withdrawal request right now you won't get the money in your "ordinary" account for a couple of days.

With the Commonwealth high interest account you can link directly to an ordinary account also with the Commonwealth that has a card. You can then transfer money immediately either way (though I think it still has to be done online).

If you have a large enough balance, the interest on cash deposits in an E*Trade share trading account isn't too bad so that's another option for those also trading stocks.

 

[GreatPig]

do you need to maintain another account and transfer money in and out of that other account?

That's how the ones I've used work (ING, BankWest, and ANZ).

The Etrade account in ANZ uses that method for taking funds out but for some reason doesn't support that method for putting funds in. To get funds in you have to use BPay, direct credit, cheque, etc.

GP

 

[Bomba]

am wondering how one accesses their money with these no fees online accounts? do you get a debit card? or do you need to maintain another account and transfer money in and out of that other account?

I use th ANZ account, formerly an ESANDA acct. Tranfer funds via the net. Its better for me now that it has become an ANZ account as i bank with ANZ. So any transfers from my online account are received the same day into my everyday key card acct, meaning i can withdraw the money stratight away.

 

[nioka]

All well and good to know that we can have money in high interest bearing accounts...

But I wonder what the real risks are of having money in that account? Is there any risk at all?

I know for a fact that in the US that if a bank goes kaput, there's a law that the US government will back up the "lost" money...

Banks are low risk but definitely there is some risk. For every dollar of deposit they lend that dollar out many times over. In the event or a big recession they could run out of cash. The next time that happens it won't be the first. There is always inflation to take into account and this seems to follow interest closely.The big question to be answered is where te government is taking us. Consider this:

The dog sits on the tucker box,he's getting pretty mad!
"The country's gone to OTHER dogs,it's getting flamin bad
It makes you wonder why,
the tucker box is foreign-owned
Said the dog from Gundagai.

"They're selling farms and factories,
A million out of work,
From Sydney town to Adelaide
And way out back of bourke!
It's time that true blue aussies-
and that means you and I-
Stand up and guard the tucker box"
Says the dog from Gundagai.

"In ten years time what happens
If we dont make a stand?
Who'll own those jolly jumbucks
across our native land
Who'llrun our mines and factories?
Who'll pay our kids the dole?
Which bank will own your mortgage?
Who'll own you- heart and soul?

Who'll pay your flamin wages?
Who'll make you pay the rent?
Who'll tell you kids what happened?
-and where your freedom went

Or can that digger spirit
A bit of do-or-die
Get back that flamin tucker box"
Asks the dog from Gundagai.

( by an anonymous author years ago.)

"As safe as a bank" ??? I wonder.!!!

 

[zam]

Hi,

I was recommended the HSBC serious saver and applied for this yesterday.
Seems like a good plan. i will let you all know how it goes

Regards
Zam

 

[Rainmaker]

What is everyones opinion of the bankwest telenet saver, offering 8.25% on call rates ?

http://www.bankwest.com.au/Personal/Savings_and_Investment/TeleNet_Saver/index.aspx

How are they able to offer rates much higher than most other banks? Higher credit risk ?

 

[prawn_86]

What is everyones opinion of the bankwest telenet saver, offering 8.25% on call rates ?

http://www.bankwest.com.au/Personal/Savings_and_Investment/TeleNet_Saver/index.aspx

How are they able to offer rates much higher than most other banks? Higher credit risk ?

I use it myself Rainmaker.

never had any problems with it.

Although the bears here would probably argue that if their rate is higher their risk is too, so they will go under soon

Perhaps they are just making smaller margins? Who knows, but im happy with them

 

[sam76]

I use it myself Rainmaker.

never had any problems with it.

Although the bears here would probably argue that if their rate is higher their risk is too, so they will go under soon

Perhaps they are just making smaller margins? Who knows, but im happy with them

Me too, Prawn.

been with them a couple of years and am very happy

 

[Atma]

i wouldn't trust bankwest. it is owned by HBOS a UK mortgage lender. we know what is happening in UK. the only banks i have TD's in are CBA, ING and Suncorp.

 

[Temjin]

i wouldn't trust bankwest. it is owned by HBOS a UK mortgage lender. we know what is happening in UK. the only banks i have TD's in are CBA, ING and Suncorp.

Yep, Bankwest is in a bit of trouble right now.

I have worked with one of our senior commercial lawyer in my firm and he said that if one of our supplier has made loan from Bankwest, it usually mean trouble because they are usually regarded as a lender of last resort.

This is the reason why they offer such a high interest saving account because they lend money to "high risk" businesses. (albeit at a higher rate) Another banker I talked to last night told me Bankwest is DESPERATELY looking for more deposit.

So I smell trouble.

 

[prawn_86]

Although the bears here would probably argue that if their rate is higher their risk is too, so they will go under soon

Right on cue guys

Higher reward generally = higher risk.

If you want risk free buy government bonds

 

[Rainmaker]

RaboPlus recently lifted their on call rates to 8%, and apparently they sport a AAA credit rating. Thoughts about them?

They seem to be a lot "safer" yet still offer decent rates. Are they backed by any UK/US mortgage institutions hehe ?

 

[So_Cynical]

Ive got a Raboplus online account

Rabobank currently holds the highest AAA/Aaa credit ratings from both Moody's and Standard & Poor's.

http://www.rabobank.com.au/inside_rabobank/about_rabobank/ratings_reports/index.asp

They just uped the interest to 8%....for a limited time.

 

[white_crane]

I've just been looking over the rates for these online, high interest accounts and have come across one from UBank (part of the NAB Group)

Currently they have a USaver account offering 5.11%, no fees, an automatic savings plan that pays bonus interest, a $20,000 daily transfer limit (unlimited over the phone to your linked account), balance up to $1m are govt guaranteed.

It's a savings only account - so no bpay etc and you need to have a linked account.

My question is basically if anyone has any experience with them and if so, how do you find their service etc.

 

[jono1887]

i was looking at the rates mentioned in this forum... was getting excited, til I saw that they were from 2 years ago

 

[ck13488]

I've just been looking over the rates for these online, high interest accounts and have come across one from UBank (part of the NAB Group)

Currently they have a USaver account offering 5.11%, no fees, an automatic savings plan that pays bonus interest, a $20,000 daily transfer limit (unlimited over the phone to your linked account), balance up to $1m are govt guaranteed.

It's a savings only account - so no bpay etc and you need to have a linked account.

My question is basically if anyone has any experience with them and if so, how do you find their service etc.

UBank link
anyone signed up to this? currently only earning 3.75% on my savings and looking to move to this. no fees that i can find, only limiting feature is no bpay and need a linked account as stated above.
is the NAB just desperate for cash? hence the high rate

 

[So_Cynical]

UBank link
anyone signed up to this? currently only earning 3.75% on my savings and looking to move to this. no fees that i can find, only limiting feature is no bpay and need a linked account as stated above.
is the NAB just desperate for cash? hence the high rate

Just put your money in the market....jezz u can make 2% a week just throwing darts.

 

[tminus]

NAB have an introductory offer for 4 months @ 4.4% but after that it drops to 2.75%. But you are are allowed to open a new account to go back on the higher rate. They are making money from people forgetting to re-create an account.