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Guest qualmberger

High Interest Internet Banking Accounts

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Guest qualmberger

Hi There,

 

We got our PR visa this week and I am now intending to open a bank account in order to transfer our savings into an account that will earn more interest than we are getting over here.

 

I have had a look online at the high interest internet banking accounts that are available in Australia and one i am currently looking at is with Virgin.

 

My question is - do the internet banking accounts work the same as they do in England? i.e. would i have to open an australian bank account and then transfer our money from the bank account into the virgin internet account?

 

Cheers

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Ongoing rate at ubank is better. If you have a lot to deposit they will give you even higher rate. We transferred from oz account.

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Guest qualmberger

thanks for the info. how do i find out about the higher rate as we will be looking to transfer about $50k into a savings account to earn some interest for us. If you dont mind me asking, what interest rate did you get?

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thanks for the info. how do i find out about the higher rate as we will be looking to transfer about $50k into a savings account to earn some interest for us. If you dont mind me asking, what interest rate did you get?

 

The current STD variable rate is 6.01. I rang a few months and said I was considering switching to rabobank and they then gave me a .55 margin above the std. So now 6.56. Note these rates are permanently high, not introductory rates that some other banks offer. You can also get close to the 6.56 rate by depositing a few hundred per month into the account.

 

I vaguely thought I read you had to be resident in Australia to use these accounts?

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Guest Nigel at NAB

Hi

 

I think the answer to your question depends on whether you have an active Australian Bank Account at the moment (i.e. you can pay money in and pay money out of the account). If you have active account then you can choose all most any account in Australia and the UBank one is a great account.

 

If you have not yet arrived then your options are more limited. They are limited as the banks are restricted by Australian Anti Money Laundering Legislation. What this means is that the banks have had to set-up special processes, to comply with the legislation, so that accounts can be opened before arrival. The key limitation with this is that until you have been formally identified in by an authorised bank representative then the account needs to remain in debit mode only, receiving funds.

 

NAB has recognised the need for a high interest account and has just launched a high interest account. This pays a competitive rate of interest. It works just, like you discussed earlier, by moving money from your everyday account into your online account. That said from the UK you can pay money directly into this account and enjoy the interest return.

 

You can find out more at nab.com.au/movingtoaustralia

 

Cheers

 

Nigel

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Guest pablofet1

Hello qualmberger

 

It is also worth knowing that until you submit you TFN (tax file number) to your chosen bank 40% of any interest you earn is taken by the government.:wacko:

 

Mel

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Guest Nigel at NAB

Hi

 

There are in effect two sides to withholding tax:

 

While you have a foreign address, before you arrive in Australia, you will normally be charged a withholding tax of 10% on any interest you earn on your bank accounts.

 

When you arrive in Australia and have an Australian address you will normally be charged a withholding tax of the top income tax rate plus the Medicare levy surcharge if your bank does not have you Tax File Number (TFN) on record.

 

If for any reason your TFN is not supplied to your bank, you can still provide your TFN to your bank at any time and claim the withholding tax you have paid through your tax return. The completion of a tax return is a requirement for all Australian residence for tax purposes.

For full details on withholding tax you should visit the Australian Tax Office (ATO) website.

 

Regards

 

Nigel

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U-Bank doesn't accept transfers from overseas, you have to go round via a Aus high street bank. You have to be resident in Aus before you can open a U-Bank A/c. When you take money out of U-Bank you need to have a mobile phone. They text you a magic number to re-enter into the online instruction. You cant do this from overseas, (say if you go on holiday) unless you have international roaming on your mobile. Things can get tricky. To get the highest rate in U-Bank you need to set up an automatic savings plan of $200/month from another bank. The max is $200,000 then the rate resets to a lower rate.

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