Where should sale proceeds be parked?

An IP settlement is in a few weeks and I will - hopefully temporarily - have a lot of cash. I say hopefully as I am looking for a new PPOR. There's a government guarantee of the first $250,000 with a bank, and here it gets a little interesting. The guarantee applies to Australian deposit-taking institutions, or ADIs. Some major banks own smaller banks. For example, NAB owns the Bank of New Zealand, MLC, and Ubank. If I put $200,000 in each of NAB and Ubank, only the first $250,00 is covered by the bank guarantee. Fixed.

The bank rates are quite low, but some banks have good introduction rates. Citibank, HSBC and Rabobank are at about 3.0% for 3-4 months, with some conditions. It seems that some banks allow a person just one shot at the introduction rate. That is, if a client has had that sort of account in the past it will not be allowed now.

I'm considering having over $250,000 in two banks, as this will leave me the option of going to another bank for a high-interest account later. I'm unsure how to proceed and advice would be valued. TIA.

 

There have been law changes regarding bail in laws. Which if I understand it correctly, having not bothered to read the legislation yet, if things get bad enough deposits would become bank shares and money would not be easily available until regulators fixed the banks.

This website is created by ASIC:
"The cap applies per person and per ADI. So if you have $250,000 with one ADI and $250,000 with another, then both of your deposits are guaranteed. If you have more than $250,000 with one ADI then only up to $250,000 is guaranteed."
Banking | ASIC's MoneySmart

 

Perhaps consider the entity to hold the money as well.

 

Aussie dollar going down. Buy USD and stash it in ur mattress. I recommended getting a sub$300 one from zzz atelier on ebay.

 

Terry, can you please clarify your advice? USD don't appeal.

There's been a change of circumstances, never happened before. I've made a bid for a new PPOR, and in the last week the advertised bottom figure for the EPR dropped $20,000. There's no s. 32 - very soon I hope - and I've made an offer for the property, subject to seeing the s.32. I can use the early release of my IP sale deposit as a deposit for the new PPOR, good timing. A few weeks after this I will have the IP sale proceeds.

I'm considering offering to pay this to the vendor to get a little more off the sale price, may assist the vendor's cashflow. Is this a good idea, and if so, should I pay the vendor or the selling REA?