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#1 2017-02-27 19:12:31

mmm....shiney!
Silver Stacker
From: 昆士蘭
Registered: 2010-11-15
Posts: 15,882
Trades :   102 
Website

Bank and credit card strategies

Thought I'd try and roll a few strategies into the one thread.

Taking advantage of the 0% honeymoon periods and the free rollover opportunities is an effective wealth management tool for those who already have the cash to pay for bills/consumer goods but choose to maximise their return on interest for the interest free period by depositing their funds into a high interest bank account such as a mortgage offset account rather than use it to pay for the goods. It's already been discussed here: http://forums.silverstackers.com/topic- … count.html

Two other strategies I've used included Macquarie Bank's generous offer of cash - $50 for opening an account with them and providing feedback during their beta testing and another $50 for depositing $1000 or more into my account. That's $100 or a 10% return on my $1000 in less than a month. Keep an eye out for other banks offering similar strategies, Macquarie's was the first I'd ever noticed (probably because I was an existing customer), but other institutions may adopt similar strategies.

Currently ING Direct is offering $75 as a cash bonus for opening an account.
https://www.campaigns.ingdirect.com.au/ … Affiliates

I've just been given an ANZ Low Rate Platinum credit card, their current offer is a $250 cash back and 0% interest on purchases for 6 months, I've got a bill to pay so instead of using my savings, I'll use the new CC and pay it off in about 5 months times and get an effective $250 discount then I'll chuck the money I have for the bill into the new ING account. More info here:

https://www.anz.com.au/personal/credit- … lowratefee

1. Limited time offer may be withdrawn or changed at any time.  One offer per eligible customer.  Only available to new and approved applicants for an ANZ Low Rate Platinum account. Not available in conjunction with other offers or packages or when transferring from an existing ANZ credit card.  The $250 will be credited to your ANZ Low Rate Platinum account within two months of account activation.  It will be applied to the purchases balance and it does not constitute a payment under your contract with ANZ. If the account is transferred, cancelled or not in good order before the $250 is processed, you may become ineligible for this offer.  The 0% p.a. on purchases will commence from the date of card approval.  After 6 months, the rate on purchases reverts to the standard variable rate applicable to purchases on your account, which is 11.49% p.a. as at Thursday, 23 February 2017 and is subject to change.  Any unpaid purchases balance will be subject to that rate.  If you transfer to a different credit card account within 6 months of card approval, the standard purchases annual percentage rate applicable on the new credit card account will apply to any unpaid purchases balances from the date of transfer.  Cash advances and balance transfers are subject to different interest rates, which are available on anz.com.

Take your ANZ card into a bullion dealer (or if you're really quick take advantage of eBay's 10% off everything), buy some gold and get $250 knocked off the balance owing, open an ING account, deposit the cash you were going to use to pay for bullion and get $75 for your efforts. All up that's $325 of free money! Just don't forget to pay ANZ back before the 6 month expiry period.  tongue

Last edited by mmm....shiney! (2017-02-27 19:13:28)


The woolgrower's target shall be the good thriving of his flock and its pastures, and so of himself and those whose livelihoods depend on his enterprise.
"The Woolgrower's Companion", 1906.

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#2 2017-02-27 21:25:12

REDBACK
Silver Stacker
From: Trump supporters matter
Registered: 2011-11-22
Posts: 3,310

Re: Bank and credit card strategies

Excellent info Shiney,keep up the great input! wink
REDBACK


"Buy now Cry later!!"

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#3 2017-02-28 00:26:01

GRETZKY427
Silver Stacker
From: Australia/Canada
Registered: 2014-11-21
Posts: 1,077
Trades :   65 

Re: Bank and credit card strategies

For just $325, is it really worth opening and closing all these accounts, i can understand if you saved $500 plus, something like that but $325 is not a big amount...well I don't think so...but interesting though :-)

Cheers, HAPPY STACKING :-)

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#4 2017-02-28 00:49:09

Bullion Baron
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From: Adelaide
Registered: 2009-09-14
Posts: 7,294
Trades :   139 
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Re: Bank and credit card strategies

How to reduce the cost of your mortgage: https://twitter.com/BullionBaron/status … 4515051521

Step 1. Find a credit card offering a no fee, interest free period for balance transfers.

Step 2. Perform the balance transfer (usually 80-95% of the limit) to another credit card with a nil balance, so now holds positive balance.

Step 3: Transfer the positive balance on your second credit card to your offset account or loan, reducing the cost of your mortgage.

Step 4: Repay the first credit card at minimum rate, just be sure to pay it back in full within the interest free period.

Savings made by a $5k credit card is small (in the vicinity of $200-300 per year), however you could do this with a much larger credit card.

Pictured below:

C4N4DyXUYAAU-8T.jpg

[Edit] On reading OP again, looks like this may be strategy in first post?

Last edited by Bullion Baron (2017-02-28 00:52:01)

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#5 2017-02-28 01:12:02

mmm....shiney!
Silver Stacker
From: 昆士蘭
Registered: 2010-11-15
Posts: 15,882
Trades :   102 
Website

Re: Bank and credit card strategies

Bullion Baron wrote:

[Edit] On reading OP again, looks like this may be strategy in first post?

Summarised well, thanks. smile


The woolgrower's target shall be the good thriving of his flock and its pastures, and so of himself and those whose livelihoods depend on his enterprise.
"The Woolgrower's Companion", 1906.

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#6 2017-02-28 01:18:42

mmm....shiney!
Silver Stacker
From: 昆士蘭
Registered: 2010-11-15
Posts: 15,882
Trades :   102 
Website

Re: Bank and credit card strategies

GRETZKY427 wrote:

For just $325, is it really worth opening and closing all these accounts, i can understand if you saved $500 plus, something like that but $325 is not a big amount...well I don't think so...but interesting though :-)

Cheers, HAPPY STACKING :-)

Entirely subjective. smile

For the effort required, let's say an hour at most, you'd have to be earning big $$$ in order to make that money in your regular job.

Strategies such as the one outlined above are the habits of the wealthy. Obviously there are other strategies that they also employ eg frugality etc but a penny saved is a punk,* pound earned.

Or something like that. tongue

* stupid phone.

Last edited by mmm....shiney! (2017-02-28 01:22:13)


The woolgrower's target shall be the good thriving of his flock and its pastures, and so of himself and those whose livelihoods depend on his enterprise.
"The Woolgrower's Companion", 1906.

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#7 2017-02-28 01:40:26

silverbait
Silver Stacker
From: Sydney, Kingsford
Registered: 2015-04-12
Posts: 579
Trades :   87 

Re: Bank and credit card strategies

Bullion Baron wrote:

How to reduce the cost of your mortgage: https://twitter.com/BullionBaron/status … 4515051521

Step 1. Find a credit card offering a no fee, interest free period for balance transfers.

Step 2. Perform the balance transfer (usually 80-95% of the limit) to another credit card with a nil balance, so now holds positive balance.

Step 3: Transfer the positive balance on your second credit card to your offset account or loan, reducing the cost of your mortgage.

Step 4: Repay the first credit card at minimum rate, just be sure to pay it back in full within the interest free period.

Savings made by a $5k credit card is small (in the vicinity of $200-300 per year), however you could do this with a much larger credit card.

Pictured below:

https://pbs.twimg.com/media/C4N4DyXUYAAU-8T.jpg

[Edit] On reading OP again, looks like this may be strategy in first post?


Bullion Baron I have suspicion with the latest credit rating an individuals rating will be decreased if they do hold continued balances (even paying the required minimum does not help) as balance is there and not being paid off at the end of the term. Also having larger limits (how do they help our ratings? )

My rating is just dropped due to having NAB card with balance transfer rate offer being used. No joke at around 100 points...

Your strategy does work I guess but at the cost of losing rating??? Am I correct?


"The real question is not whether life exists after death. The real question is whether you are alive before death."  OSHO

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#8 2017-02-28 02:24:16

Jislizard
Silver Stacker
From: Australia
Registered: 2011-04-07
Posts: 7,465
Trades :   57 

Re: Bank and credit card strategies

Over in the UK I had a large credit card debt that I didn't pay off for several years. I think I went through about 6 of the transfer balances and 0% interest periods.

The amount they offered went down each time I switched.

It wasn't just me, the financial industry called us 'credit card whores'. I have had a look and it must have been in the newspapers because there is nothing on the internet about it, shows how long ago it was.

I eventually had to give up because they changed the way the system worked just to stop us.

You got your interest free period on the transferred balance. When you ran up new debt on the card and paid it off, instead of the money paying off the new debt, as it had previously done, the money you paid in now paid off the credit from the balance transfer.

You ended up paying full interest on the new debt and that would keep building up until you had paid off all of the initial balance transfer.

Gave up after that, I still have a Marbles credit card account in the UK with +£0.75 on it, they won't send me a cheque for that small amount and they can't reimburse it apparently. I asked them what they were going to do about it and they said I should just spend on the credit card to go back into debt. I told them I was leaving the country but they continued to send me statements saying I was £0.75 in credit right up until my mum sold the house. I would imagine that they are still sending them.

My worst fear is that they charge me £1 for something, and I end up unknowingly owing them £££ over the next 50 years until they hunt me down and take my house.


Now stacking: World Junk Silver Coins.
Swap your older, worn, dirty fractional silver coins for fiat, .999 rounds or legal tender. 
Individual coins, mixed lots or bulk. 
Not looking for Australian, bent, holed or damaged coins, thanks!

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#9 2017-03-01 00:51:37

mmm....shiney!
Silver Stacker
From: 昆士蘭
Registered: 2010-11-15
Posts: 15,882
Trades :   102 
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Re: Bank and credit card strategies

Be aware that applying for credit comes at a cost to your credit score.


The woolgrower's target shall be the good thriving of his flock and its pastures, and so of himself and those whose livelihoods depend on his enterprise.
"The Woolgrower's Companion", 1906.

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#10 2017-03-09 20:53:42

Bullion Baron
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From: Adelaide
Registered: 2009-09-14
Posts: 7,294
Trades :   139 
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Re: Bank and credit card strategies

Ok here's an interesting one. This is probably best for middle - high(ish) income earners and those who do some travelling. Potential to achieve $750 - $1800 (or more) in free benefits by spending bonus points (per account/card opened).

American Express 'Explorer' card was released last year.

Benefits:

* Bonus 50,000 Membership Rewards points (80,000 if via referral link, PM me if interested & can provide mine)
* $400 travel credit every year
* Free access to the Sydney Airport American Express lounge twice a year
* Free insurances (phone screen + travel, T&C apply)

Restrictions:

- Need to earn $65k per annum (personal or household)
- Minimum card limit of $3,000
- $395 annual fee
- Need to spend $1,500 in first 3 months to get the bonus points

How this works for me:

I usually holiday/travel each year so the $395 annual fee is basically offset by the $400 travel credit supplied each year which I will use for hotels, flights or tours (so net neutral cost).

I have received my card and will be referring my wife as well so that we have 2 of these cards and 160,000 points between us (+ 20,000 additional I will receive for referring her).

The $1,500 spend in first 3 months is easy, especially if you are looking at booking holidays / accommodation, etc, but be warned many businesses charge additional fees for AMEX. Even so, $1,500 @ 3.5% surcharge is only $52.50 in fees (worst case scenario, some charge lower % or not at all).

The American Express Membership Rewards points can be transferred to various airline, hotel and other reward partners.

For example, we are considering transferring 80,000 of the Membership Rewards points to 40,000 Starwood Preferred Guest (SPG) points [1:0.5 ratio], then you can convert to their hotel partner Marriott for 120,000 points [1:3 ratio]. The Marriott Rewards points can be used to book nights in their hotels and I am looking at some 120,000 point 5 night hotel stays in the EU (5th night free promotion) which would otherwise have cost us somewhere between $750 and $1,800 (depends on hotel, country, dates, etc).

I understand the minimum value of 80,000 Membership Rewards points is around $600 - $800 if you just use them to purchase gift cards, but you can use various, hacks / transfers to increase their value substantially.

If you are interested in giving it a go (applying for a card), feel free to shoot me a PM and I can provide a link that will get you the 80,000 points or otherwise you can signup via their standard website and still get 50,000 points.

Of course once you have received and spent the bonus points, you can always close your account.

BTW I will add that credit cards can be dangerous. If you aren't the type that strictly pays off their cards before interest starts being charged then give them a miss altogether, however credit cards can offer some unique benefits if you have discipline to use them to your advantage wink

Last edited by Bullion Baron (2017-03-09 21:58:41)

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#11 2017-03-09 23:45:55

HoldMeTender
Silver Stacker
From: Nunya
Registered: 2016-01-06
Posts: 945
Trades :   14 

Re: Bank and credit card strategies

All this is way too convoluted for me. I just do the standard mortgage offset juggle, paying my salary directly into my loan a/c and doing all my spending on my interest-free CC. The bank was kind enough to explain that a BPay transfer scheduled for the due date would be processed as paid on time (in fact they said there is a few days' grace). So I've had a free line of credit (equalling about a month's salary) for the last two years. It's a low-fee CBA gold card, maybe $20/yr and includes some benefits, the only one I have used or can bring to mind is free travel insurance. Minimum spend $10k/yr.

I'm yet to be convinced that the hassle of collecting points would be worth it to me. I know it suits some people but I honestly couldn't be arsed researching it, carrying multiple cards, or changing my habits for tiny cumulative rewards. It seems sometimes like a bit of an obsession and can alter spending habits adversely, e.g. always flying Airline X for the points - why not just take the best deal?

Edit to add: none of these ideas is worth anything if you pay interest on the CC. There's the single most valuable CC tip you'll ever get: Never Pay Interest!!

Last edited by HoldMeTender (2017-03-09 23:50:44)


All that glitters is not gold...
...but all that is gold glitters!

Windbag in Spandex

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#12 2017-03-10 00:14:01

Bullion Baron
Silver Stacker
From: Adelaide
Registered: 2009-09-14
Posts: 7,294
Trades :   139 
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Re: Bank and credit card strategies

HoldMeTender wrote:

I'm yet to be convinced that the hassle of collecting points would be worth it to me. I know it suits some people but I honestly couldn't be arsed researching it, carrying multiple cards, or changing my habits for tiny cumulative rewards. It seems sometimes like a bit of an obsession and can alter spending habits adversely, e.g. always flying Airline X for the points - why not just take the best deal?

Typically I'd agree and I won't be worrying about messing around with swapping cards and calculating points on future purchases, but the points awarded from the signup bonus for the card (x2) listed above will pay for 10 nights accommodation on an upcoming European holiday (to the value of around $1,500 to $3,600). For a couple of hours messing around (if that), even if I close the accounts when I return from holidays it will have been a worthwhile exercise smile

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#13 2017-03-10 00:33:59

HoldMeTender
Silver Stacker
From: Nunya
Registered: 2016-01-06
Posts: 945
Trades :   14 

Re: Bank and credit card strategies

Bullion Baron wrote:

..the points awarded from the signup bonus for the card (x2) listed above will pay for 10 nights accommodation on an upcoming European holiday (to the value of around $1,500 to $3,600). For a couple of hours messing around (if that), even if I close the accounts when I return from holidays it will have been a worthwhile exercise smile

That's more like it!


All that glitters is not gold...
...but all that is gold glitters!

Windbag in Spandex

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#14 2017-03-14 01:28:22

Bullion Baron
Silver Stacker
From: Adelaide
Registered: 2009-09-14
Posts: 7,294
Trades :   139 
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Re: Bank and credit card strategies

Bullion Baron wrote:

Ok here's an interesting one. This is probably best for middle - high(ish) income earners and those who do some travelling. Potential to achieve $750 - $1800 (or more) in free benefits by spending bonus points (per account/card opened).

Surprised at the lack if interest in this to be honest. I recently booked a 'free' ($50 fees) 5 night stay in Zurich with the points from the account I opened, would have cost me A$1200+ otherwise. I was looking today for a colleague to see what sort of holiday the bonus points might score him locally and it would pay for 3 nights in the Sheraton Grand Mirage Resort on the Gold Coast (with a few points left over), worth around $840.

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#15 2017-03-20 08:57:44

Radio8tiv
Member
Registered: 2016-12-02
Posts: 83
Trades :   

Re: Bank and credit card strategies

Bullion Baron wrote:
Bullion Baron wrote:

Ok here's an interesting one. This is probably best for middle - high(ish) income earners and those who do some travelling. Potential to achieve $750 - $1800 (or more) in free benefits by spending bonus points (per account/card opened).

Surprised at the lack if interest in this to be honest. I recently booked a 'free' ($50 fees) 5 night stay in Zurich with the points from the account I opened, would have cost me A$1200+ otherwise. I was looking today for a colleague to see what sort of holiday the bonus points might score him locally and it would pay for 3 nights in the Sheraton Grand Mirage Resort on the Gold Coast (with a few points left over), worth around $840.

I also did this but took it one step further,(probably a bit late for you now), but at marriott rewards they have a travel package option for most of the major FF programs. So basically you get a 7 night certificate to use at Marriott properties and a handfull of points depending on the program, United will reap the most points Avios wasn't bad with the recent bonus promotion, etc

I opted for KrisFlyer miles for an upcoming suites booking, and seven nights in NY just after thanksgiving which is usually ~$2500 USD

you can take this even further by linking to an Edge, if your planning on keeping the Explorer just message me for more details

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#16 2017-03-20 16:11:11

Bullion Baron
Silver Stacker
From: Adelaide
Registered: 2009-09-14
Posts: 7,294
Trades :   139 
Website

Re: Bank and credit card strategies

I did notice these packages (https://www.marriott.com.au/rewards/use … orepack.mi), however by my calculation may not have worked as well for us as the 5th night free promotion, which combined across the two accounts we opened provided 10 nights free accommodation. Will shoot you a PM in case I'm missing something, have spent the points achieved from 1 card on 5 free nights in Zurich, but only just achieved the spend for the second account, points incoming soon.

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#17 2017-03-20 18:10:47

Mintaka
Member
From: Australia
Registered: 2012-12-12
Posts: 342
Trades :   12 

Re: Bank and credit card strategies

I can't remember to use a coffee card correctly.  These schemes are far too complex for a simpleton like me.

I am older, and don't know what I would do if I had my time over.  I am not sure I would be rushing headlong into the real estate market because of stamp duty barrier, and I would definately not rush into the stock market.

I think that a business is the winning strategy.
Just my opinion.


Rest In Peace, Amjad Mohammed Ben Sasi. May your name live long and true in a world full of lies.

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