bcworld

Well it is pretty simple. Assuming you don't reinvest the interest every month the interest you would earn in a year on $30k at 7% is 30000 x 0.07

TillyG

So it *is* as simple as I thought then? LOL. I guess, then without counting in compound interest or any extra money we put aside (we reckon in the New Year we'll have about $500/month to save), on the $30600 we've got coming over we should make 2100 in a year = 175 per month. Acct fees of $5 (ANZ) + $4 (one of the banks) + $3 (the other one) = 12 per month. So net gain of 163 per month, ish....

Will do some more playing with sums later on - been a long day already!

Grayling

You need to take tax into account......I am currently paying 46% tax on interest as my TFN has not been sorted out yet:curse:

TillyG

Ouch! I think I may put the new accounts (if we do them) into my sole name (Housewife, no income).... will do some more digging as the current savings acct we have with ANZ is a joint one and DH already pays shitloads of tax.

Thanks for the reminder - very helpful! Hope you can sort your TFN out soon

donovandenese

westpac only charge the account fee of $5 per month if theres less than $3000 in the account. they also have pretty good rates on savings - ordinary esaver account is 6.8% and term deposits 7% and upwards depending on length you invest for. with term deposits you can chose if you want interest added monthly, annually or on maturity. also, they don't seem to give you a lower rate for lower amounts - so good for splitting money up across banks.

we are doing that with mums - she is waiting on her visa but took advantage of the rate this week to send her savings. as a nonresident she will be taxed at just 10% on interest.

Wol

Won't actually make any difference - she'll still be giving Gordon Brown the same tax (less the 10% that Wayne takes <g>.

pawpaw

the interest payable to the deposit is very appealing to me- for e.g 50K deposit x 7% per annum = $3,500 interest earned every year.

but how about the taxes? will the taxes wipe out most of the gains reap from the interest?

Wol

You can always put (some of) it into a retirement savings account, which only attracts 15% tax on the interest.

quercus

You don't need a transaction account with Bankwest, they will link a savings account to your current account at another bank.

donovandenese

yea for sure...taxwise she will be same as now, benefit was the good exchange rate and higher savings interest here compared to the UK

TillyG

Thanks for that. I wasn't too sure if BankWest were "OK" these days. Am I right in thinking they were recently bought out by one of the other 4? If so, I guess that makes them fairly "safe"?

quercus

CBA have snapped them up, which means as safe as they could be without a guarantee, I guess. They also have the best online interest rate.

TillyG

Fantastic - thanks so much for your help

quercus

Glad I could be of help, they were originally recommended by the clued up folks on here, who have given me so much help.

mary1967

Can you claim it back when you get your TFN?