Join our investing community

Sole Trader And Accounts

Discussion in 'Money Management' started by Mr Average, 27th Mar, 2011.

  1. Mr Average

    Mr Average New Member

    Joined:
    27th Mar, 2011
    Posts:
    2
    Location:
    NSW
    Hi.

    I'm looking for an account where I can withdraw the interest earnt from that account without being penalised. ING and UBank were looking good. But I can't use them because I am a sole trader (who earns a very small amount of money).

    So, does anyone know an account that I can open?

    In the meantime I'll continue looking.

    Oh and if someone can explain why sole traders can't use these types of accounts, that would be good too.

    Thanks.
     
  2. builder2818

    builder2818 Well-Known Member

    Joined:
    31st Dec, 2008
    Posts:
    89
    Location:
    Sydney
    Who told you that you can't use those accounts because you are a sole trader? I was a sole trader for 3 years and I had an ING savings maximiser account. I used it to transfer money from my regular bank account into it.

    I ended up closing it because I couldn't stand stuffing around transferring money in and out and having to wait. You're better off setting up an account with Commsec. You may or may not invest in shares but they don't need to know that. They have a investment account that is linked to your cash account which has nil monthly fees not like a regular bank. The investment account pays 5.5% interest which is more then ING (they advertise a higher rate but it is only for 4 months before they reduce it).

    I wouldn't get too worked up about business accounts and private accounts, if you are a sole trader it would make no difference if you opened accounts in your own name - all you really get out of business accounts is higher fees charged for everything. With banks, they charge you more monthly fees.
     
  3. Mr Average

    Mr Average New Member

    Joined:
    27th Mar, 2011
    Posts:
    2
    Location:
    NSW
    builder2818....

    Long story short, it seems really odd, but it looks like I made a mistake about not just one but both of the above accounts (which were, by the way, the Savings Maximiser and the USaver accounts).

    So, I apologise for causing any confusion. And, when I can, I will check out the Commsec account.

    Thank you for your advice and thank you for replying.