Hight intrest saving account bonuses

[nev]

While looking at high interest savings accounts I came across a website that use a strategy that was to take advantage of the bonus being offered
What they suggested was to open an account that have a high interest bonus period and put money in their until the end of the bonus period
Then close the account down and move the money into another account (different bank ) that offered a high interest bonus until the bonus period ended and then do it again
Realistically can this be done
How many accounts can 1 open and close in a set period of time ?
I would have thought there would be a minimum time a bank account can be open for

 

[ScottyB]

Why bother when USaver offer the best rate and as long as you contribute a minimum each month as part of a regular savings plan the bonus continues.

Compare their rate to all others in the market and you will save yourself time and hassle once you realise they are one of the best rates available.

Regards

ScottyB

 

[The Y-man]

While looking at high interest savings accounts I came across a website that use a strategy that was to take advantage of the bonus being offered
What they suggested was to open an account that have a high interest bonus period and put money in their until the end of the bonus period
Then close the account down and move the money into another account (different bank ) that offered a high interest bonus until the bonus period ended and then do it again
Realistically can this be done
How many accounts can 1 open and close in a set period of time ?
I would have thought there would be a minimum time a bank account can be open for

I don't think there is any limit as such.

The Y-man

 

[The Y-man]

Why bother when USaver offer the best rate and as long as you contribute a minimum each month as part of a regular savings plan the bonus continues.

Compare their rate to all others in the market and you will save yourself time and hassle once you realise they are one of the best rates available.

Regards

ScottyB

...except they don't take trusts by looks of it

The Y-man

 

[nev]

Why bother when USaver offer the best rate and as long as you contribute a minimum each month as part of a regular savings plan the bonus continues.

Rams Has a better offer

But I didnt ask that

 

[redwing]

My son's high interest savings account linked to his normal account expires soon, i queried if we could close then re-open the high interest savings account later that week and get the higher rate again, I was told yes

 

[westminster]

Correct - you don't even have to leave the bank. Just find a teller who wants to increase their 'new' accounts tally and they'll sort it out for you.

On a similar note I have a friend who has been shuffling around a whopping credit card debt from bank to bank on the 0% (or ultra low) for balance transfers.

 

[Moneyman_85]

For someone starting to build up a deposit (No home/ 1st IP) , would this be advisable? or would a more stable history be better...

John.

 

[bumbles]

Yes, this works. I have been doing it since I was in high school.

In fact, I have a NetbankSaver (with CBA) and the other day I realised they were offering a bonus .25% interest to new customers. I opened a new NetBankSaver account online and transferred the money in. I now earn the extra .25% and have both NetbankSavers sitting there (albeit one with a 0 balance).

I also have an ING account, a Bankwest account, a Ubank account a Mebank account etc... (many don't have funds in them at the moment). The only downsides are you have to spend a bit of time opening an account and you're giving your details out to various companies. Both are small downsides for me.

If it adds any credibility to my story, I worked in a bank for several years and now work in funds management so I feel I have a good grasp of how it works.


That said, I keep very little of my money in cash so the extra .5% or whatever is virtually inconsequential.

Happy hunting.

 

[C-mac]

I do not know enough about personal finance and savings rules and process; but I can't imagine that having a history of several years worth of changing your savings account provider; looking 'great' on your credit history report?

 

[Aaron_C]

I do not know enough about personal finance and savings rules and process; but I can't imagine that having a history of several years worth of changing your savings account provider; looking 'great' on your credit history report?

It won't appear on your credit history because savings accounts aren't credit products.

 

[bumbles]

I used to work in a role where I would use a credit check provider (veda) and we would only be looking for defaults on loans or obligations.

There is no rule against having many different bank accounts.

 

[tobe]

And they only check the previous 3 months for genuine savings history. Amounts above 5% of the purchase price, and outside the immediately past 3 months are completely irrelevant to almost all lenders.