The general perception is that to acquire Qantas frequent flyer points, one must juggle numerous credit cards. However, if you’re skeptical about this approach, there’s great news! Leading the charge is the Bankwest Qantas Transaction Account!
Disclaimer: This post isn’t financial advice or product advice. Always assess your personal circumstances and goals when considering if this product aligns with your needs.
Unlocking the Bankwest Qantas Transaction Account
For Aussies, the widespread belief is that Qantas points go hand in hand with credit card usage. But, Bankwest challenges this narrative by introducing one of the rare savings/transaction accounts that lets you accrue Qantas points without a credit card commitment. For those wary of credit card debt and the associated high interests, this eftpos alternative might just be the breakthrough!
How Many Points Can You Rake In?
Bankwest tempts with 0.3 Qantas points for every $100 parked in your account daily, with the cap set at balances up to $50K. Simple math tells us that with a $50K balance maintained daily, you’re looking at an annual gain of 54,750 points = ($50,000/100 x 0.3) x 365 Days
But there’s more: earn a whopping 10,000 bonus Qantas points when you make 10 eligible transactions each month for the first three months for new customers when you apply before the 30th of Nov, 2023!
Additionally, every eligible transaction fetches you 3 Qantas points.
For individuals shying away from credit cards, accumulating 50K Qantas points annually can be daunting. There are limited avenues that allow such accrual without some credit card interaction. This account might be the solution they’re searching for. But, as with every opportunity, there are trade-offs. Let’s dissect this offering compared to a conventional savings account.
Scenario Analysis: Qantas Points vs. Interest Earnings
2023 has ushered in savings accounts boasting a 4% interest rate, a stark contrast to the preceding year’s 1%. When comparing the advantages, it’s crucial to be updated with prevailing interest rates. For this illustration, we’ll peg the interest at 4% and retain the $50K balance.
Standard Savings Account:
$50K x 4% = $2,000 yearly via a 4% interest-bearing savings account (exclusive of tax implications).
Qantas Transaction Account:
$50K x 0.3 Qantas points per $100 = 54,750 points annually.
Breaking it down to the opportunity cost per point vis-à-vis interest:
54,750 points / $2,000 = 3.7 cents per point
In essence, a $50K investment at 4% interest would yield $2,000 annually.
Whereas, placing $50K in the Qantas Transaction Account gifts you 54,750 points each year.
Referencing the Qantas website, procuring 55K Qantas points directly costs $1,511 AUD currently, translating to 2.7 cents per point.
In Retrospect:
The above scenario emphasizes that a more economical route would be to allocate the $50K at a 4% interest rate, subsequently purchasing the Qantas points outright, saving an impressive $489 in the process (exclusive of tax implications).
While on paper, the high-interest savings account takes the lead, you must evaluate its alignment with your financial trajectory. For us to genuinely advocate for the Qantas transaction account, a hike to at least 0.6 points per $100 seems imperative, considering the current appealing interest rates. Bankwest’s 0.3 points per $100 might have been enticing when banks were stingy with interest, but 2023 demands recalibration!
Saying this, if you are using the account as a regular transaction account + collecting the bonus sign up points it could be very worthwhile if it is appropriate for your circumstances!
For an in-depth overview of the Bankwest Qantas Transaction Account, click here
OzBargain Discussion, click here
For more ways to earn Qantas Points be sure to check out our other posts under Everything Qantas points here
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