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  • Profile photo of Fudge111Broz00Fudge111Broz00
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    @fudge111broz00
    Join Date: 2003
    Post Count: 245

    Hi Everyone!~

    The ING Direct savings maximiser variable interest rate as been increased by 0.25% from 4.75% to 5% p.a.

    This is a nice bonus in interest for me, as i do not yet own any property, so the rates don’t affect me in a negative way, only in a positive, well, for the time being anyway.

    Fudge111[;)][:)][:P][8D]

    Profile photo of PropertyGuruPropertyGuru
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    @propertyguru
    Join Date: 2003
    Post Count: 1,502

    Hi Fudge111,

    Yes I have also ING account and I put all my extra money there. It’s good news. [8D]

    Cheers

    [:)]
    PropertyGuRu

    Profile photo of comdomcomdom
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    @comdom
    Join Date: 2003
    Post Count: 92

    Would you not be better putting cash in a managed fund earning 8,9or 10% ?[;)]

    Profile photo of Fudge111Broz00Fudge111Broz00
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    @fudge111broz00
    Join Date: 2003
    Post Count: 245

    Well, not when I may need quick access to my money, ING is very flexible, and there is no bank fees ever, and you do not lose interest if you transfer money out of your savings maximiser, and interest is calculated daily.

    Fudge111[;)]

    Profile photo of RichoRicho
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    @richo
    Join Date: 2003
    Post Count: 24

    comdom,

    quote:


    Would you not be better putting cash in a managed fund earning 8, 9 or 10% ?


    I’d like to see you find a managed fund that has actually achieved 10% returns over the last year or two! I had some money in a managed fund and it went backwards, fast… so I took it out and have since done a much better job myself.

    Profile photo of baloobaloo
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    @baloo
    Join Date: 2003
    Post Count: 122

    I use Citibank’s Online savings account. That’s been 5% for a while and is now 5.25%. Pretty much the same deal on fees and no interest penalties as ING.

    Profile photo of JustAllanJustAllan
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    @justallan
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    Post Count: 168

    Weren’t St George already offering 5% from a long time ago?

    Profile photo of u9026au9026a
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    @u9026a
    Join Date: 2003
    Post Count: 16

    Hi Savers

    AMP esaver account (same type as ING) now earns 5.05% but I have most of my money with City Pacific earning 7.5% at call, reinvested quaterly 7.71%. Lock it in for 12 months and get 8.75% ( think). The rates on their web site are a tad out of date. Top company.

    http://www.citypac.com.au

    Profile photo of Fudge111Broz00Fudge111Broz00
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    @fudge111broz00
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    Post Count: 245

    mmmm, very interesting guys, but i think i’ll stick with ING for the time being, it is all i need at this early stage.

    Fudge111[:)]

    Profile photo of Fudge111Broz00Fudge111Broz00
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    @fudge111broz00
    Join Date: 2003
    Post Count: 245

    Quick Question everyone,

    I was wondering whether savings accounts like the ING Direct savings maximiser will have rate increases which are the same as what the reserve bank does,

    for instance, if the reserve bank pushed ratyes up by another 0.75% next year, would the ING Direct rate go from 5% to 5.75%?

    Look forward to hearing back from one of you.

    Fudge111[:)]

    Profile photo of CeliviaCelivia
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    @celivia
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    Post Count: 886

    I’m not sure if the ING interest rate will increase exactly in line with the reserve bank increases. But the ING interest rate has been 4.75% for a long time until last week when it was increased to 5%. Personally I would have thought they would have increased it a bit more, say to 5.25% like Citibank.[:P]

    Profile photo of alpinaalpina
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    @alpina
    Join Date: 2003
    Post Count: 46

    we also use to park our money in ING till we realised it made a lot more sense parking it in an offset account.

    5% interest was good but we had to give half back to the ato. offset made a lot more sense :)

    julie

    Profile photo of PropertyGuruPropertyGuru
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    @propertyguru
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    Julie,
    But Fudge111 hasn’t got any home loan so he can’t use any offset account.

    [:)]

    [:)]
    PropertyGuRu

    Profile photo of alpinaalpina
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    @alpina
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    Point taken PropertyGuRu :)

    Silly me had a home loan and we were using ING because our loan provider didnt offer an offset facility. Fixed the problem by switching to another loan provider :)

    Julie

    Profile photo of Mortgage HunterMortgage Hunter
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    @mortgage-hunter
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    Post Count: 3,781

    Julie,

    Good point – anyone with a home loan and substantuial savings chould consider an offset account.

    Why?

    Because this will pay the current interest rate and will be tax free – way better than any term deposit.

    Cheers,

    Simon Macks
    Mortgage Broker
    [email protected]
    0425 228 985

    Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

    Profile photo of Fudge111Broz00Fudge111Broz00
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    @fudge111broz00
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    Could you guys explain to me more thoroughly about how an offset account works, coz i am only new to this stuff and have never had a mortgage?

    Please?

    Thankyou.

    Fudge111[:I][:)]

    Profile photo of Mortgage HunterMortgage Hunter
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    @mortgage-hunter
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    Fudge,

    Simply it is an account linked to your home loan.

    Every dollar in it offsets the loan – saves interest. ie a $200 000 loan with an offset account holding $50 000 will see you paying interest on a loan of $150 000.

    Why not just pay into the loan and redraw as required you ask? If you convert the home into an IP and wish to buy a new PPOR using the funds then you preserve the original loan against the new IP.

    Had you redrawn for a new PPOR then that is considered a new loan for personal use and as such wouldn’t be deductible.

    Hope this helps,

    Simon Macks
    Mortgage Broker
    [email protected]
    0425 228 985

    Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

    Profile photo of www.Landlords.co.nzwww.Landlords.co.nz
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    @www.landlords.co.nz
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    Post Count: 60

    Surely you would be paying interest on 150K, not 50k (assuming a 100% loan)?

    And yay for the ING rate rise. didnt even know.

    Craig
    NZ Property Investing News
    http://www.Landlords.co.nz

    Profile photo of Mobile MortgageMobile Mortgage
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    @mobile-mortgage
    Join Date: 2003
    Post Count: 913

    Hi Fudge,
    Partial offset,
    any money you have in your offset account will offset the interest you are paying on your home loan.
    If you have a loan of $100,000 at 7 percent and an offset account with $5,000 earning 3 percent. eg, $95,000 of your loan is accruing interest at 7 percent but the rest is accruing interest at 4 percent.

    A 100% offset works the same way except the interest payed on the offset account is the same as the interest charged on the loan.
    Cheers
    Steven

    [email protected]
    http://www.mobilemortgagemarket.com.au
    Ph:0402483216
    Victoria

    Profile photo of Fudge111Broz00Fudge111Broz00
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    @fudge111broz00
    Join Date: 2003
    Post Count: 245

    Gotcha!, thanks mobile mortgage, i understand now, so basically it is better because the interest is now not tax assessable, where as in say ING Direct savings maximiser it is, is that right?

    Also, why wouldn’t you just use the $5000 to pay off the principal, surely that would be a better option, if you didn’t need the money in the short term?

    Fudge111[:)]

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