Transaction and savings accounts in a low interest rate environment

Hi folks

For years I've used Ubank choosing to trade convenience for a high online savings rate (conveniences like cheque deposit, polipay, PayID, physical branches, bonus financial products/discounts).

But ultra low interest rates are here to stay. Online savings accounts are offering ~1.5% p/a: less than CPI inflation and far less than real inflation. Thus savings deposits are now eroding in value.

So for me, and perhaps many others, its time to rethink what we expect from a Bank account and how we manage savings deposits. My focus is shifting to an emphasis on convenience- and how easily the account facilitates transactions between other financial accounts like brokerage accounts or exchanges. Over many years, I've accrued accounts at 3 banks (plus transaction accounts and high interest savers), 2 US brokerages, 2 domestic brokerages, and 2 cryptocurrency exchanges; I think it's time to consolidate those accounts so that money can be managed more seamlessly as a portfolio.

I'm wondering:
a) How others are thinking about this problem (or it is even considered a problem)?
b) What financial products people have found to manage their money without having many accounts at different institutions?
c) What features do people find invaluable and why? There are so many new features I've never heard of (beem-it, osko …..)
d) What sneaky financial tricks and synergies have people been able to exploit to get meaningful bonuses and rewards?

Obviously people have many different needs (esp. if mortgaged) but perhaps we can keep the spotlight on:

How do you value, and manage, transaction and savings accounts in a low interest rate environment?

Comments

  • +3

    I use one bank for my home loan, and one bank for my normal accounts, credit card, etc. I invest the money when possible so I don't rely on a negative return from having it sit in the bank.

  • -3

    Ah yes, I see the papa gubment's plan to scare people to spend their money instead of safely keeping it in the bank is working out too well.
    Make sure to invest all your savings! "Never let a good crisis go to waste!" and all that.
    I have 2 friends who got burned by this attitude and now they pester me to borrow them money because they know I have savings and "don't invest".
    So I gotta lie now that I invested everything into bitcoin…

    omg you sound like such a horrible person just give em the cash bro

    I have told them not to "invest" money in things they have no idea about and that I will not be their emergency fund. They proceeded anyway. It is 100% their fault and I will not be responsible.

    • +2

      i have no idea what you are talking about lol

      • I think his/her friends are asking for money

        • +2

          So the moral of the story is:
          The smart thing to do is "invest" in lotto tickets, then ask Blue Cat for money.

      • Can't fault you for not speaking cat, let alone blue cat.

    • +1

      Lol, I've increased my super balance by about $12k so far thanks to covid.

      Investing money is not spending money.

Login or Join to leave a comment