fin

Hello!

I've been reading thru the forum and found how to open a westpac bank account over the phone from the UK.

Just wondering if you have to transfer funds into the account which you open asap because of any bank charges? Do they charge you every month for the account to be open?

We're not arriving until March and wondering if it's worth just waiting until we get there to open, or if we should open the account and start transferring money over when the exchange rate is good!

Thanks!

ohippy

If you transfer the money straight into your savings account you'll be earning good interest on your money. I transferred the minimum into the cheque account and then the rest into savings then no charges. Not sure if you are charged if all money in savings but I didn't want to take the chance. My view is to exchange when the rate is good - it can make a lot of difference when you are changing up a lot of money.

GinaUK

If you got with Westpac, best to topen two accounts: a Westpac Choice account (everyday account, charge $5 per month) and a Max-i-Direct account (internet savings account).

If you keep a certain amount in the Choice account, then there are no charges. Can't be bothered to look it up but I think it may be $3000.

So, we opened both accounts over the phone from the UK. Then transferred just over $3000 into the Choice account (using tranzfers).

Ten days ago, when the exchange rate hit 2.5, we transferred a chunk into the Max-i-Direct (with HiFX) and set up a forward contract for the rest of our money (also at 2.5).

All easy peasy.

Gina

louie

I'm really not sure of the logic behind doing this. If you have $3,000 in Max-i account at the minimum rate of interest of 5.25%, you will earn $157.50 in a year, more if your balance is over $20,000. You could use that interest to pay your $60 per annum charges and have nearly $100 left over. I don't know what tax you pay on the interest you earn in Oz, but it would have to be more than 61% for it to be better to leave the $3,000 in a no interest account. Not only that, your $3,000 may take you into a higher Max-i interest rate band.

Mind you, I've got $3,000 in a Choices account too, but only because they won't let me transfer it to the Max-i one....

GinaUK