This savings account earns Qantas points so you can FLY
Note: things may have changed (eg. interest rates) since we initially wrote this article in 2019, but the idea and maths stay true.
Did you know?... There is a Bankwest bank account that gives Qantas Frequent Flyer points with a smaller interest rate. Now that's different.
It caught the attention of our team and our clients, so I did some digging to show you how this account could be valuable to your situation:
Please note this is not an endorsement for BankWest. We do not receive any benefit from BankWest, and they were not contacted for comment. All iFLYflat advice is independent and unbiased - this is not financial advice, it is purely an observation and comment. We only care about the points.
The Account
First, let's look at the key features of the account.
0.3 Qantas points per DAY per $100 balance in your account (It looks small till you start to do the sums, and you’ll realise it’s not a bad deal)
0.01% variable interest rate
Unlimited transactions and no monthly account fee if you deposit at least $2000 per month ($6/month fee otherwise)
Unlimited use of Bankwest and Commonwealth Bank ATMs in Australia
Debit Mastercard transactions -3 points per eligible purchase
This is not a term deposit, it is a transaction/savings account.
** (Update: From 1 Nov 2021, any balances over $50,000 will no longer earn Qantas points)
View their website for the specifics.
Let's run some numbers:
Points vs Interest (Cost vs Benefit)
Case Example: A house deposit.
You are looking and waiting for the right house on the right street at the right price, but don’t know when you will need to use the cash, or any other type of scenario where you have $50k of cash (legally I hope).
Say you have the max $50,000 in the account for the year.
Each month = collect 4,562.5 Qantas points (+/-), at the end of the 12 months = collect 54,750 Qantas Points.
(The maths = 0.3/day x 365 = 109.5pts per $100/year x 500 = 54,750pts per $50,000/year)
That’s nearly enough for the 68,400 Qantas points to fly one-way Business Class from SYD/BNE/MEL to Hong Kong or Singapore.
That's worth around $2,250 AUD. 🎉
Giving your points a value of approx. 3.2 cents per point.
You can play with the IFLYFLAT Points Calculator to see the number of points to fly to the most popular destinations.
Multiply that with your own scenario.
Now for compare that to earning 1.0% in a term deposit. 💰 (ie: if you are lucky)
$50,000 @ 1.0% = $500 interest [less tax @ 19%, 32.5%, 37% or 45%] is a lot less value than above.
$500 minus 19% tax = $405 net
$500 minus 45% tax = $275 net etc...
OTHER BANKS?
Apart from Bankwest, there are other bank accounts which offer a similar deal, they each have different earn rates and eligibility.
BOQ Specialist lets you choose between Qantas or Velocity points (Eligible only to doctors, dentists and accountants)
https://www.boqspecialist.com.au/personal-banking/bank-accounts/everyday-plus (This one “Earn 1 Qantas Point or 1 Velocity Point for every $10 of daily average balance in your account, calculated at the end of each month”, which is equivalent to 0.32 pts per day per $100. About the same as the Bank West deal)
Qudos Bank (Qantas points)
https://www.qudosbank.com.au/Products/SavingsAccounts/QantasPointsSaver (This one “Earn 400 Qantas Points* per annum for every $1000 of your balance, credited monthly”, which is equivalent to 0.1 pts per day per $100. In plain language, earning 1/3rd of the BankWest deal)
Note how every bank uses complicated language to make it hard for you to compare the offers.
Over to you - Is this a savvy way to get more for less?
Want to increase your points even more? Talk to us about how to earn points through your business and personal spend. We can get you more rewards from your all you points - frequent flyer points and credit card points, and find & book the right flights for your holiday.
Summary
Since saving account interest rates are at record lows. I think earning points for a holiday is infinitely more memorable and exciting.
