NAB acquires Citibank Australia

[Lynda2475]

When NAB acquired Citi, I just received an email with my new customer number and a one time link to set-up a password. I did not have to verify my ID with NAB, I may have done that when I opened the account with citi online years ago, and certainly with NAB last time I churned one of their CC a few years ago, but these new citi replacement accounts have different customer number.

So seems silly if they can do it all via email for a local resident why they cant for a non resident.

 

[Flashback]

When NAB acquired Citi, I just received an email with my new customer number and a one time link to set-up a password. I did not have to verify my ID with NAB, I may have done that when I opened the account with citi online years ago, and certainly with NAB last time I churned one of their CC a few years ago, but these new citi replacement accounts have different customer number.

So seems silly if they can do it all via email for a local resident why they cant for a non resident.

Perhaps they auto validated ID against Medicare or similar? Not sure, data protection laws should have avoided that.

 

[Flashback]

All setup now, found another way to get the ID certified.

FYI for those with the former Citibank online saver account, don't worry about the rates that show when you click through from the NAB site. We have a special rate which is shown on Your NAB Reward Saver account fees, interest and information (Your NAB Reward Saver account fees, interest and information).

 

[Lynda2475]

The 5.6% is better than I can see on offer elsewhere (and higher than what citi was giving) considering you need only deposit $1 a month to get it, far fewer hurdles than ING or BankWest.

Gong to be moving some funds around this weekend.

 

[AIRwin]

The 5.6% is better than I can see on offer elsewhere (and higher than what citi was giving) considering you need only deposit $1 a month to get it, far fewer hurdles than ING or BankWest.

Gong to be moving some funds around this weekend.

Is the rate subject to change?

 

[Flashback]

Is the rate subject to change?

Yes, it says it is variable. It's 4.6% base variable plus 1% bonus variable.

I must say though, their internet banking online and app are a breath of fresh air compared to Citibank. That wouldn't be difficult though...

 

[Lynda2475]

Is the rate subject to change?

That is the case with all banks, if it changes and doesn't suit, move your $. There are no fees or penalties for withdrawal.

Its not a temporary introductory like the Macquarie Bank one here 5.5% drops to 4.75% after 4 months, although Macquarie has zero hurdles, still pays this rate even if you make a withdrawal and an excellent app.

 

[anat0l]

The 5.6% is better than I can see on offer elsewhere (and higher than what citi was giving) considering you need only deposit $1 a month to get it, far fewer hurdles than ING or BankWest.

Wow... I have a Suncorp account and use their Growth Saver, as well as an ING Savings Maximiser.

Obviously ING has its known hurdles and tapers off once you hit the $100k mark.

Suncorp is a modest $200 more than last month's balance and only one withdrawal; NAB could be a better option...

 

[Lynda2475]

NAB could be a better option...

Noting this 5.6% deal is only for those accounts converted from Citibank under the take-over.

The normal rate for the NAB Reward Saver is 5% only condition is to make 1 deposit (no minimum amount) and no withdrawals. Id deposit at least $1 to be on safe side.

 

[SYD]

Noting this 5.6% deal is only for those accounts converted from Citibank under the take-over.

The normal rate for the NAB Reward Saver is 5% only condition is to make 1 deposit (no minimum amount) and no withdrawals. Id deposit at least $1 to be on safe side.

The “no withdrawal” condition has turned me off these accounts in the past (which is why I use ING and UBank), but curious about the new Citi replacement interest rates.

I am wondering if they’ve mixed up the base and bonus interest? The standard NAB Reward saver is 0.35% Base (variable) + 4.65% Bonus (Variable).

For former Citi accounts, 4.60% base and 1% bonus is more attractive if you want the cash at call!

 

[Lynda2475]

If you want cash at call go Macquarie 4.75% no hurdles or penalties for withdrawals.

 

[asterix]

If you want cash at call go Macquarie 4.75% no hurdles or penalties for withdrawals.

ME Bank Home Saver pays 5.55%, you need to deposit $2000 per month but that can come out straight away. Also need to increase the balance each month, I increase it by one cent each month.

 

[Lynda2475]

ME Bank Home Saver pays 5.55%, you need to deposit $2000 per month but that can come out straight away. Also need to increase the balance each month, I increase it by one cent each month.

But by definition using the money at call is decreasing your balance, so not the same.

This NAB offer has the fewest hurdles for 5.6%.

Macquarie bank pays the best interest of any bank account that has zero hurdles i.e. no minimum deposit, no fees and no loss of interest for regular withdrawals.

Most of the other banks offering 5%+ require large minimum deposits + growing balances and/or a bunch of specific transaction types. Fine if that bank is your main bank, but wont suit all.

Westpac Life account is quite good for dedicated savings, only hurdle is to make at least one deposit a month and no withdrawals for 5%.

There is no one single best account for everyone, as needs vary.

 

[SYD]

But by definition using the money at call is decreasing your balance, so not the same.

This NAB offer has the fewest hurdles for 5.6%.

Macquarie banks pays the best interest of any account that has zero hurdles i.e. no minimum deposit, no fees and no loss of interest for regualr withdrawals.

Most of the others offering 5%+ require large minimum deposits + growing balances and/or a bunch of specific transaction types. Fine if that bank is your main bank, but wont suit all.

Westpac Life account is quite good for dedicated savings, only hurdle is to make at least one deposit a month and no withdrawals for 5%.

There is no one single best account for everyone, as needs vary.

Ubank is only $200 pm to get 5.10%. That money can come back out immediately. No other transactions, min balances etc. Plus it has the international tx fee free debit/ATM.

 

[Chicken]

Macquarie banks pays the best interest of any account that has zero hurdles

Macquarie is only 4.75. Unity is 4.9 and unconditional, so Macquarie is certainly not the best

 

[serfty]

This NAB offer has the fewest hurdles for 5.6%.

The No withdrawals turns me off ... and it does apply to the "grandfathered" saver accounts.

• Variable bonus rate is applicable when at least one deposit is made to the NAB Reward Saver account on or before the second last banking day of the month, and there are no withdrawals in the relevant month. A banking day is any day that isn’t a weekend or an Australia-wide public holiday.

 

[Lynda2475]

The No withdrawals turns me off and it does apply to the "grandfathered" saver accounts.

I never said it didn't. A savvy saver wouldnt put all their eggs in the one basket. Money you need/plan to spend is better off in an account with no hurdles and a decent interest rate. Accounts like this NAB best for parking funds you dont need/intend to spend for a while.

Like I said no one solution is best for everyone.

Macquarie is only 4.75. Unity is 4.9 and unconditional, so Macquarie is certainly not the best

Looking at the Unity site I cant see anything that is 4.9%:
* Easy saver plus is only 4.10%, no hurdles
* Active saver is 4.75% but requires a $200 deposit, so same rate as Macquarie but with a hurdle so if opting for that UBank seems the better option.
* Freedom saver is 5.2% but only for first 50k, and decreases o 5.1% up to $250k, so seems to be the best they offer, better than 4.9.

But what turns me off is Unity is not a bank; I have major distrust of building societies and mutuals and they are restricted from providing some services that a bank can. Your risk appetite and need for various products may of course vary making it a viable option for you.

Because there are caps on the size of deposits APRA guarantees at banks, I never have more than this limit in any one bank, spread the risk.

 

[oz_mark]

But what turns me off is Unity is not a bank; I have major distrust of building societies and mutuals and they are restricted from providing some services that a bank can. Your risk appetite and need for various products may of course vary making it a viable option for you.

Because there are caps on the size of deposits APRA guarantees at banks, I never have more than this limit in any one bank, spread the risk.

In what way is Unity not a bank?

It is covered by the Financial Claims Scheme up to $250,000

The MoneyMax account pays 4.9%

 

[Chicken]

Looking at the Unity site I cant see anything that is 4.9%:

MoneyMAX

what turns me off is Unity is not a bank; I have major distrust of building societies and mutuals and they are restricted from providing some services that a bank can.

Yep, try borrowing money to buy a house in Sydney, and they will lend you $400k, which is barely enough for a garage

Your risk appetite and need for various products may of course vary making it a viable option for you.

But I can't see any risk with just putting $50 or $100 k cash in there and earn 4.9%, which is what I'm doing. I allocate cash on hand into home loan offset account, then any excess goes into Unity Bank. When I need to pay for lawn mowing or plumber, I just pay direct from Unity Bank, instead of the bank where my home loan is.

 

[Lynda2475]

MoneyMAX

Ah google pointed me to Australian Unity (a Mutual) not Unity Bank (a Credit Union).

Yep, try borrowing money to buy a house in Sydney, and they will lend you $400k, which is barely enough for a garage

Agree if you want to borrow 80% of house value in Sydney and also get the package benefits of free points earning credit card, multiple offsets etc you need to deal with an actual Bank.

But I can't see any risk with just putting $50 or $100 k cash in there and earn 4.9%, which is what I'm doing. I allocate cash on hand into home loan offset account, then any excess goes into Unity Bank. When I need to pay for lawn mowing or plumber, I just pay direct from Unity Bank, instead of the bank where my home loan is.

Nothing wrong with your logic, I do similar but I have my savings split across multiple banks, so that all are guaranteed deposits.

I also deliberately have multiple super accounts (but turn off insurance on all of them) so that the balance of none of them exceeds what the government guarantees.