r/AusMoneyMates • u/ApartmentFun3497 • 9d ago
I’ve stopped chasing every extra 0.2% on savings
I used to jump around between savings accounts whenever I found one paying a bit more. Then you realise there’s usually some catch, like having to deposit a certain amount, make a bunch of transactions or the higher rate only lasts a few months. These days I’d rather have a decent rate and an account that’s easy to use than spend my time moving money around for an extra few bucks.
7
3
u/No-Secretary8781 8d ago
Same here. I did the maths once and it cured me. An extra half a percent on $20k is $100 a year, and that’s before tax. For that I was setting reminders to move money on the 1st and making five pointless card taps a month.
The one that always got me was the intro rate. Looks great for four months, then drops to almost nothing and you only notice half a year later, so you’ve ended up worse off than if you’d stayed put.
If you’ve got a home loan, the better move is just leaving the cash in an offset account. You’re saving at your mortgage rate, there’s no tax on it because it isn’t interest earned, and there are no hoops at all. That’s where ours sits now.
No mortgage, then yeah, one decent account with no conditions and forget about it.
1
u/Over_Tha_Rainbow 9d ago
I exhausted all the honeymoon rates and moved money around every 4 months. Finally settled with ING savings maximiser and I have a transacting account attached so meeting the monthly requirements is easy.
I also have Macquarie accounts which I use for bucket savings
1
u/Regular_Gap614 6d ago
It's more about figuring out if the criteria is going to suit you.
I bank with ING as this bank seems to work for me - at least for full on savings - and the rates are good overall and stable.
Work on the Maximiser account - and make sure it going to suit your first.
1
8
u/TheBaconator3019 9d ago
It's always a question of is the juice worth the squeeze. Odds are no, but depends on the size of your cash buffer.