If you can get a high I rate lock it in for as long as possible cos it can only go down....way down
Anyway, it's good to hear that you've gotten yourself back to a better rate.
I know that you would already aware of this, but thought I should highlight (for the benefit of other readers of this thread) that a number of the rates mentioned on that infochoice page appear to be introductory offers that will later revert to a lower rate, so one needs to keep a note of the expiry date in order to facilitate a timely renegotiation and/or transfer to a better offer at another institution.
As always, its important to read the fine print.
Re getting it renewed, I've had this done several times by pointing out to the bank that I'll move the funds elsewhere if it doesn't happen. It perhaps helps that I've been with this fairly small branch for decades and have established relationships there.
With 6-figure sums at least, it shouldn't require too much effort to sustain the bonus offers from the various banks over the longer term. That after all is the going rate.
So it's better if I can get the bank to just re-apply the current 'new' rate.
Also, if one is continually establishing new accounts with different institutions, it's quite a pain with having to send all the documentation of SMSF Trust Deed etc. each time. Much more complicated than the very simple process of just opening a new a/c in your own name.
Situation is this: I have a Ubank account where I transfer my savings from my everyday account for the purpose of, well, savings. However, if I get a promotion I have applied for, I want to put my extra income into a separate account so I don't mix my funds. I want to continue living as if I didn't get the promotion and just keep tucking the extra income away.
But can I open another Ubank account under the same name, with the same TFN, and link it to the same everyday account?
I don't know about Ubank as I'm with ANZ.
How I see the legality of how the banks operate their savings bonus rates is that it's their concern, not mine as the customer. If I can maintain the bonus rate on a continous basis, then I'm happy.
The base rate should be viewed by the customer in the same light as the ticket price on an expensive item at Harvey Norman or any other retailer.
Reminder to everyone to check their deposit rates. After dropping the rate on their online at call a/c only a few weeks ago, ANZ have just dropped it another .25%.
They do not let you know either.
This is another aspect of Rabodirect's superior customer relations: they send an email any time they change the rate. I'm sure a lot of people whack money in a deposit and don't bother to check whether the rate has changed.
Rabodirect have increased their deposit rate as follows:
How does it work, you ask yourself... It's very simple. All new money you put into your HISA from today until 31st January 2013 will earn 5.71%p.a. interest rather than previously 4.6%p.a. (on balances up to $250k) that's an increase of 1.11%p.a.!* So, from today, some of your rates are going up and some are going down.
Check out the table below for a full breakdown of your High Interest Savings Account rates.
High Interest Savings Account rates Balance range Standard Variable Rate (p.a.) Loyalty Rate* Loyalty + Standard rate (p.a.)*
Under $250k 4.55% 1.16% 5.71%
$250k – $1m 4.20% 1.16% 5.36%
Over $1m 3.95% N/A 3.95%
Purpose Saver 3.95% N/A 3.95%
ANZ have just dropped their interest rate on at call online a/c from 5.25% to 5%, despite claiming, when discussing not passing on the full RB cut to borrowers, that they were precluded from so doing by the pressure to keep deposit rates high.
comsec cash account drop to 3.5% that's 0.5% drop
time for the cash to fly and look for yield stock ....
"Invincibility lies in the defense; the possibility of victory in the attack." Sun Tzu
The best cash rates around right now are the Rabodirect HISA and UBANK high interest savings, both offering 5.46%, not bad considering how low the official RBA rate is.
There's one thing we have learnt from history, it's that we don't learn from history.
Nothing I say is a recommendation or advise, do your own research.