Hight intrest saving account bonuses

While looking at high interest savings accounts I came across a website that use a strategy that was to take advantage of the bonus being offered
What they suggested was to open an account that have a high interest bonus period and put money in their until the end of the bonus period
Then close the account down and move the money into another account (different bank ) that offered a high interest bonus until the bonus period ended and then do it again
Realistically can this be done
How many accounts can 1 open and close in a set period of time ?
I would have thought there would be a minimum time a bank account can be open for

 

It depends on the individual bank and account. You need to read the product information for any you want to set up. Some do say you have to hold it for a minimum period, others don't. I have done this over the years and have also kept several accounts open at different institutions and swapped money backwards and forwards as the interest rates go up and down, just ensuring I maintain the minimum balance required to keep the account open and/or not be penalised. I prefer to choose ones that have no minimum balance though.

I have never heard of a limit on how many you can hold across different institutions but some may say that you can only have so many at their own. I prefer to choose accounts that have a high rate with no bonus period. I find their rates are more consistent over a longer period so there isn't the need to open new accounts as often. Often the ones with the bonus, drop considerably after the period, ensuring the need to move your money quickly. There are ones out there offering ongoing (variable) rates close to the 'bonus' rates that others offer. You can also find ones that give you a 'bonus' amount for regular deposit amounts and no withdrawals instead of a 'bonus period'. As I said, these rates are variable, but if you keep an eye on it you can move the money around if it drops or you see something better come on the market instead of having to after the 3mths or 5mths etc that the bonus period ones offer. I am no expert but I have noticed they usually alter when the reserve bank increases or decreases rates so it is easy to keep track of.

 

UUUMM Yes?????

Why is that
Thats why I asked
Is it Illegal????

 

With everything online these days I have never found it takes more than a few minutes to set up a new account and move money around. For those who don't have a lot of money or who are starting out, even a small amount of interest adds up over time.

If you can do a regular savings plan and no withdrawals, then you will find some that will give you a good ongoing bonus rate instead of just a brief bonus period. Have a look at UBanks Usaver account to see what I mean. This way you won't have to keep moving your money around as often.

 

Sorry I thought this was a Forum to do with Investing

AFP????
I have been told this is normal behavior particularly those with SMSF

 

Fi

Why did you delette your Post
Your comments where very Valid