Which bank gives you access to very cheap flights?
Did you know?... There is a Bankwest bank account that gives Qantas points rather than interest. 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.
First, let's look at the key features of the account.
12 Qantas points per month per $100 balance in your account
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
It’s important to note this account works for both Transaction and Savings. On top of the monthly points, you can also earn 5 points per 'eligible transaction' on the debit card, which is a nice bonus but not relevant if you're intending to use it for savings. 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 perhaps you’ve just sold a home and need to park those millions in proceeds somewhere, or any other type of scenario where you have lot of cash (legally I hope).
Say you have $100,000 in the account (for ease of calculation). Each month = collect 12,000 Qantas points (+/-), at the end of the 12 months = collect 144,000 Qantas Points.
120,000 Qantas points is enough to fly one Business Class return from SYD/BNE/MEL to Hong Kong or Singapore. and with points left over for a domestic flight too.
That's worth around $4,500 AUD. 🎉
Giving your points a value of approx. 3.7 cents per point.
Multiply that with your own scenario.
NOW Compare that to earning 2.5% in a term deposit. 💰
$100,000 @ 2.5% = $2,500 interest [less tax @ 19%, 32.5%, 37% or 45%] cannot buy a business class flight, like in the example above.
$2,500 minus 19% tax = $2,025 net
$2,500 minus 45% tax = $1,375 net etc...
Apart from Bankwest, there are other bank accounts which offer a similar deal, they each has different earn rates.
BOQ Specialist lets you choose between Qantas or Velocity points (Eligible only to doctors, dentists and accountants)
Qudos Bank (Qantas points)
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.
Since saving account interest rates are at record lows. I think earning points for a holiday is infinitely more memorable and exciting.
Think about it...