Banking - some tips
 

Spoke to various banks and cluey relatives in Oz to make some sense of banking plus added in what we remember from living there. Aim is to maximise interest on dosh from sale of our UK house until we buy in Melbourne plus minimise ripoff bank charges.

Our plan is below. Hopefully might save someone else a bit of brain space figuring it out.

Basics:

- Govt debits tax is taken on all transactions from accounts with chequebook facility - not just on cheques from those accounts. Daft.

- Impossible to avoid charges for using ATMs from other banks so you need to bank with a 'biggie' that has loads of machines: Top four are NAB (National Australia Bank), CBA (Commonwealth), ANZ and Westpac (Bank of Melbourne in Victoria). First two are the biggest. Check who's the biggest where you're going.

- Banks charge ridiculous amounts for current accounts unless you have lots of money with them. You have to have a $20K 'relationship' in total with the bank to avoid all charges. So it's possible to have a basic account charge free with minimal money in it (earning even more minimal interest!) if you keep $20K in something with better interest with the same bank (eg term deposit).

- You can get an instant access account with someone like ING (see their website www.ing.com.au) paying 4.75% on any balance. You need an account with another bank as a 'front' and the money can be transferred in and out same day by phone or web (none of this 3-5 days rubbish!)

We're going with Commonwealth so our strategy is:

- Use credit card for most transactions - look for one with decent bonus points/offers - direct debit full balance monthly from bank account

- CBA high interest current account (aka Cash Mgmt A/c) - keep minimal money in it, enough for day to day use, request no chequebook so no debits tax, transfer money from ING to top it up monthly/whenever

- CBA basic account (aka Streamline A/c) - with chequebook, keep $1 in it, transfer money across if cheque written (instantly done at ATM)

- CBA term deposit - eg 90 days pays 4.4% if set up on web (can only do it once in Oz), not as much interest as ING but difference more than offset by saving on bank charges with free banking

- ING a/c - rest of dosh earning 4.75% - can set this up on arrival, application form on web, need copy of CBA bank statement, takes 1 week to open

Hope this is some help to someone - my brain's fried...

great mail very useful

what a mine field

james

Cheers Joleyn

That was really handy

Steph

Thanks Jolyon Clears up a few anomolies - trying to get your brain around the different banks ways of explainng things sends you blind.:mad: :mad:

wow, well done, really good info.

Cheers

karen

Re: Banking - some tips
 

[QUOTE]Originally posted by Jolyn
Spoke to various banks and cluey relatives in Oz to make some sense of banking plus added in what we remember from living there. Aim is to maximise interest on dosh from sale of our UK house until we buy in Melbourne plus minimise ripoff bank charges.

Our plan is below. Hopefully might save someone else a bit of brain space figuring it out.

Basics:

- Govt debits tax is taken on all transactions from accounts with chequebook facility - not just on cheques from those accounts. Daft.


This [govt debits tax] has been scrapped by some states. For example, if you open your account in NSW you will not be taxed this way - even if you live in Queensland. You can normally open accounts by post / internet and there is no disadvantage having your bank located outside of the state that you live in. If you walk into your local branch and tell them that you want the account based in another state (that avoids debit tax) then they will probably let you do it on their phone.

HSBC do not really have any bank charges and does not require a balance as long as you open it with 2k. With HSBC you can draw money out of post offices free (unlimited) or from any cash machine (5 free non HSBC transactions a month) or from any HSBC cash machine (not many about though).

I've been with HSBC for a couple of months now and never been unable to get cash (without a charge) when I've needed it. Their card doesn't seem to work in Mobil fuel stations for some reason - I have always had to use cash or VISA there.

Basically a cheque account is bad news for bank charges and you don't really need one. Gave mine up years ago and never had a problem.

Just get a normal current account with ATM card and credit card. pay as much as you can by CC and pay off the balance in full each month automatically (direct debit) from your current account.

Most bills that won't accept CC you can pay by BPay, which is like an electronic cheque, or pay anyone which just requires billers Account no and sort code. Works a treat. Even paid my rent to property owners account using pay anyone.

Most credit cards are now chargeing you a fee, but VirginBlue has just introduced a guarenteed free for life Mastercard, with low intrest rates (just applied for one). Once I'm happy with it I'll ditch my ANZ Visa card to escape the new annual charge (about $40).

Got to agree that ING direct is the best investment account with instant access, but DragonDirect do the same thing with the same interest rates.

Thanks Jolyn.

That's saved us a lot of effort.

Alan

Hiya,

Jolyn and jwatsonoz: thanks for the info :) Good post - the kinda thing that's really useful, and better to know before you get to Oz!

Steve.

Re: Banking - some tips
 

Jolyn

Thanks very much for sharing that useful info.
These are the posts that are so informative and well worth reading

Diane


;)

I'll give one tip. If you are arriving with a lot of cash dont just settle for the great aussie rip off bank fees. See the Manager, negotiate a cash investment rate, plus get your fees dropped for having so much dosh. Some fees they have to charge but heaps of them can get dropped if they want.

Treat Australia like a bit of Asia = Haggle over the price. Obviously this wont work in Kmart or similar but individual business here is very competitive and they usually want every sale.

Re: Banking - some tips
 

Thanks for the contributors to this post - good stuff.

From reading previous posts and then looking on the relevant websites, I'm interested in the HSBC online account.

Following on from what jwatsonoz contributed, are chequebook charges (regardless of use of one) avoided on the HSBC online account by requesting not to have a chequebook, or is it by opening up the account in NSW? Or even 'either', ...... or even even 'neither cos you can't avoid them on this account'?

Cheers

:)

Re: Banking - some tips
 

HSBC do not charge for having a cheque book on their online savings account. I think there is a charge of $1 per cheque you actually write (competitive to others). I have never had to write a check - everybody accepts Bpay or transfers. Most places accept FPOS which is a bit like SWITCH. However, I value the option in to pay by cheque in case I get stuck. Many places don't accept cheques though - there are no cheque guarantee cards here. May be useful if you need to send money in the mail, but I have always managed to use VISA. You need a mastercard/visa card here....FPOS does not work over the phone like SWITCH does. I recommend the VIRGIN mastercard as they do not charge an annual fee. I am currently using HSBC visa, but they charge a fee after the first year is up so I will change to virgin by then.

best regards,
Jason

Thanks Jason.

I agree with you about HSBC. Just looked at their website and rang them up to clarify some points.

The HSBC option wouldn't work if you tended to take out cash regularly during the week though. Hardly any cash machines (only 5 in Victoria!) would mean that you'd rapidly exceed 5 free non-HSBC transactions a month and start paying $2 each time. The Commonwealth option works better then.

Fortunately there is an HSBC branch near where we'll be living and we don't take out much cash anyway. Plus it seems straightforward to open the account over the web with a referee from the UK.

So I guess we'll go with HSBC instead of Commonwealth. The Online Savings Account is the one to have - the rest seem the usual ripoff. 4.1% will mean we won't have to remember to transfer money from ING so regularly and can keep a higher balance in the account without feeling like we're losing out.

I'll skip the chequebook though - we wrote only a handful of cheques in a year in Oz 10 years ago and electronic banking has moved along since then. Without a cheque guarantee card noone will take a cheque anyway. We can open a basic cheque account later if it seems needed.

So...HSBC account + credit card + ING account.

Now just have to decide whether to convert dosh to dollars here and send dollars or send sterling and have it converted there. Our past experience is that you usually get a better rate sending sterling and crossing your fingers about what the rate will be when it gets there! Anyone have any pearls of wisdom on this???

EFTPOS (Cash back)
 

With the HSBC account you can still get cash out (Cash back) when you pay for things by EFTPOS.
This doesn't count as an ATM withdrawal and you can do it as much as you like. (As long as the shop doesn't mind).

We have just been through the process of opening the HSBC account. We filled in the forms over the Internet and they then e-mailed us a signature form and also a 'proof of ID' form. We took the ID form to our local bank (doesn't have to be HSBC, UK) and they filled it in for free!!!, we then posted both of the forms off to Oz.

Within a couple of days we were e-mailed the account number and we just have to transfer across a minimum of $2000 to open the account. (SWIFT transfer costs £10-£15). They then send you the ATM cards and things, so you can have them before you leave the UK for Oz.

No monthly charges.
You can spend YOUR money as much as you like without having to pay the bank any fees.
Good interest rate compared to most banks
Easy to open

This seems a much better deal than Commonwealth and ANZ etc...

Thanks Pabloako.

Forgot about EFTPOS cash back - don't do it much here (Switch + cashback) because I spend on credit card to get 1% cashback.

Great - that's the banking sorted then...now back to the flights.

PS Does anyone want me to warn them which flight we're on? - travelling with a hyperactive 3 year old we'll be so popular even with the doctor's note...be interesting to see how much it takes to rattle the calm of those legendary Singapore and Malaysian flight attendants :rolleyes:

We have done the UK - Oz trip a couple of times with a toddler. There is an anti-Histamine medication called Valorgen (I think that was what it is called). You can get in in any UK chemist and don't need a prescription.

There is a specific "sedation" dose on the bottle that tells you how much you should give for the age of your child.

In the end, we didn't use it, but we know a number of parents that used it and found it great. Even just to get a few hours on the flight to yourselves.

You should try it out before hand to see how it affects your child, to make sure you get the dose right.

Thanks Gordon. I'll check it out at the chemist tomorrow.

We've tried some antihistamines to knock him out unsuccessfully before but I haven't heard of that one so I'll give it a try. Unlike with adults antihistamines can hype up a child so you never know without testing.

Any tips gratefully received.

We're taking a car seat to strap him in for those turbulence times. A couple were thrown off a flight from Milan recently for not being able to keep their child strapped in - he could get out of the adult seat belt easily. Something like our little Houdini.

Sounds like you should air mail the wee mite!

Good luck!:) :)

The anti-histamine usual works well, but in some instances can cause the child to be even more hyperactive.

Alternatively take it yourselves and you'll be able to sleep through the noise.

Another idea would be to pay two grand like me for my dog and put it in the hold!

No truelly good luck.
Roger

My son has dyspraxia (lacks motor control, so god help the person sat in front of him!) and mild add. Antihistamines make him even more hypo and he falls over a lot more that usual!:)
My GP said he could give him a mild sedative to "chill him out a bit" Maybe i should just slip him a few duty frees along the way:D :eek: :D

PS. Sorry this thread got sidetracked, excellent information, thank you!:cool:

Hevs,

My doctor has written us a note to say we need prereserved bulkhead seating - noone in front - for the other passenger's comfort mostly! Also with a car seat on the plane seat there's not much leg room left so if the person in front reclines their seat it's tricky.

Trailfinders says airlines are very responsive to doctor's notes so that might help you too.

Best wishes,

Jolyn

Melbourne in September too - see you there!

Hi Jolyn

Thanks for that its certainly worth a try.
We were hoping to go in september, but havn't sold the house yet! Where are you headed in Melb, our Kids should meet! Wind 'em up and watch 'em go!:D

Heather

Check whether you are allowed a car seat with the airline before you travel. I carted mine along for 2 hours, got on the plane and was then told I was not allowed to use it. They had to put it in the hold.
Some airlines have their own seats that you can use some have nothing

Bets of luck.

Tinaj!

We've definitely hijacked this thread now...

Some airlines do seem to be a problem Tinaj. Qantas/BA won't take a carseat unless it's a special Australian one that attaches at the top as well - they don't supply them and you can't buy them in the UK. Doh!

Singapore Airlines says any carseat is fine (on their website plus I rang them). Malaysian says any seat is probably fine but they want to know the dimensions beforehand. Haven't checked the other airlines as they're not known for being as child friendly.

Was advised by travel agent that Thai, Singapore and Malaysian have best leg room and allow migrant double baggage allowance. Skipped Thai as no seat back TVs on that route. Have put up with the glares before while walking toddler up and down the aisle endlessly as everyone cranes their necks around us to see the central movie screen!

Good luck all.

Heather - I'll send you a PM.

Are you sure about BA,I work for them and I've definately seen 'Britax' style car seats in the Hosties work areas by the galley

I checked with Qantas and that's what they said. Same as BA anyway but you only get the double migrant baggage allowance flying on the Qantas flight numbers. Maybe BA are telling a different story (how helpful!).

Also travel agent said Qantas/BA were notoriously unhelpful on anything to do with small kids/specialist requests.

Are you sure the carseats weren't ones they'd taken away from passengers??

ING bank
 

Back to banking, just realised I put the wrong link in the post at the top of the thread.

Should be www.ingdirect.com.au not www.ing.com.au

Oops!

[QUOTE]Originally posted by Jolyn
We've definitely hijacked this thread now...[QUOTE]


Lets hope its the only thing to be hijacked, all this talk of hours in a plane is giving me the creeps:rolleyes: ;)

Re: EFTPOS (Cash back)
 

[QUOTE]Originally posted by pabloako

We have just been through the process of opening the HSBC account. We filled in the forms over the Internet and they then e-mailed us a signature form and also a 'proof of ID' form. We took the ID form to our local bank (doesn't have to be HSBC, UK) and they filled it in for free!!!, we then posted both of the forms off to Oz.

[QUOTE]


On the proof of ID form it says you need someone from an International Bank (only category from the list that didn't have to be an Australian National) that has known you 12 months at least.

I will find this hard as my branch is in coventry and I live in York and I don't know anyone in either branch.

Did you know the person well from your bank that filled in your form?

Jo

Hi Jo,

'Known to the bank' should be OK. As in you show them your account details and they can check on their computers how long they've 'known' you. If you have a photo ID like a passport as well as your servicecards it should be OK hopefully. Let me know how it goes - I'm going to try this at my local branch tomorrow.

I don't bank at my bank branch (use an online account of their's) but I got the bank manager to sign certified copies of docs for hubbie's spouse visa application so he knows me now. I would try it this way - this is what I did for the docs.

- Phone your branch in Coventry and check that it's possible for them to give you a bank reference. Thank them for all their years of helpful service (be chatty like you know them personally) and explain you're going overseas for while (so they think you'll still be a customer in the future). They'll say yes and assume you're someone they see regularly. They're not going to admit that your name doesn't ring a bell.

- Then ask them to ring the branch in York for you to confirm that it's OK.

- Turn up at the York branch just after lunch with a large box of chocs for the tellers. Say that the Coventry branch rang them earlier and how grateful you are for their help. Repeat the 'thank you for all your bank's years of service' spiel and tell the manager the chocs are for his/her staff.

They were falling over themselves to help me...

Good luck!

Thanks for that I will give it a go

Cheers

Jo