Managing My Money in 'sub-Accounts'. Is It Possible? - A Newbie Question

here for deals on 26/04/2022 - 11:22

Hi OzB,

I recently got a full-time professional job relevant to my tertiary education. Prior to this, I was working below minimum wage trying to make a proper living (long story for another day). My current graduate role isn't paying great either. But hey, I am not complaining. I am grateful for this opportunity and I will focus on good career growth. If my path to good pay and great career growth is to endue this graduate role where I am over-worked and under-paid, so be it. Overall, I am happy with where I am currently, compared to where I was a few months ago.

Anyway, enough with my mumbo-jumbo. Let's get to the actual question -
Is there a way to create multiple sub-accounts within my Commbank Smart Access or NetBank Saver account?
If there is no such feature, can I create multiple netbank saver accounts (I know I can rename them)? Is there any other bank which provides such a feature?
Will this affect my loan eligibility or credit score in any way or am I overthinking here?

My idea is to create multiple sub-accounts which act as 'folders'. One for emergency fund, one for savings to buy my hobby stuff, one for savings to buy a home (lol, dreaming here) etc. As of now, I only have 2 bank accounts one is a commbank smart access and another is a commbank netbank saver.
I am new to all of this, the job, the steady income, financial planning. So, as a side-note, please give me your killer ideas towards financial discipline and financial management.

As I type my original question, another question popped up - call it Q2 -
I never used or enrolled for a credit card and never used afterpay/zebpay and their equivalents. Only bought mobiles outright and never in contract. What will be my credit score? Zero? Does not using these give me a better credit score which will help in getting a home loan later?
I don't want to use a credit card just to avoid the credit side of things and make my life simple.

Like I said, I am new to this. This is only my second forum post. Roast me first if you have to but also teach me the right way of OzBargain.
Thanks!

Financial

Comments

  • kerfuffle on 26/04/2022 - 11:25
    +9

    Get a better saving account than your Netbank Saver with a higher interest rate e.g. UBank (which lets you have multiple saving accounts; currently have four). Some will require stipulations in order to receive bonus interest like UBank

  • FoxJump on 26/04/2022 - 11:35
    +2

    Suncorp seem to have sub-accouns

    https://www.suncorp.com.au/banking/faqs/accounts/everyday-op…

    • here for deals on 26/04/2022 - 11:42

      I only thought they are a Super provider. Didn't know they are also into Banking. I will look into it, thanks.

      Is there any disadvantage going with less-known banks? I assumed everybody uses the big 4 banks for their regular daily use accounts. Maybe I was wrong with such an assumption.

      • kerfuffle on 26/04/2022 - 11:44
        +2

        Most keep one big 4 for stuff like branch access and bank cheques (UBank doesn't issue bank cheques) but use the likes of ING, Macquarie, Citibank for other banking needs

        • here for deals on 26/04/2022 - 11:54

          Oh! One for convenience and one for benefits. Fair enough.
          Does having multiple bank accounts across multiple banks come with any disadvantage?
          I guess I liked to keep things simple and never bothered to look into this before.

    • grips on 28/04/2022 - 09:49

      We are with Suncorp Banking for the last 30 years and never had a problem, subaccounts are very convenient and the App works well.
      Transfers are fast and can be set up for the future.
      I use a Suncorp Debit Card for convenience.

  • Stopback on 26/04/2022 - 11:55
    +3

    Get a no annual fee credit card. It's useful when booking hotels and you are charged a deposit.

    • Presence on 26/04/2022 - 13:04

      And some things like car hire used to require them. Not sure if that's true anymore.

      • kerfuffle on 26/04/2022 - 13:21

        Still need a deposit for car hire

        Source: hired one last week

  • ShortyX on 26/04/2022 - 11:55
    +2

    My suggestion would be to use a budgeting app instead and track all of your transactions & categories that way.

    We use YNAB however it is one of the most expensive options, and takes a bit of time to set up, learn the methods and keep up to date.

    All the best!

    • here for deals on 26/04/2022 - 12:03
      +2

      A budgeting app sounds interesting.
      I was thinking excel sheets to categorize and recognize patterns in my spending.

      • SnowDragon on 26/04/2022 - 12:14

        If you just want to categorize and recognize patterns, you can use Pocketbook.

        You link your bank account and it does a good job of categorizing things automatically.

        • FoxJump on 26/04/2022 - 12:54

          CBA also automatically categorises things. Is pocketbook better than CBA's categorizer?

          • here for deals on 26/04/2022 - 13:37

            @FoxJump: I have this question too.
            In my experience, CBA app doesn't get it right 100%, there's always mismatches. But then again, I haven't used other apps so I don't know provides 100%

          • SnowDragon on 26/04/2022 - 14:11

            @FoxJump: No idea - surprisingly never banked with CBA yet.

            It does miss things, but most of the time it knows what's up. If it doesn't you can manually set the category and it'll remember.

      • Joey2scoops on 27/04/2022 - 09:21

        I found pocketsmith to be really good although I'm paying $10 a month. I tried a lot of different apps before settling on that one.

      • beatit99 on 27/04/2022 - 10:52

        I use https://www.budgetwithbuckets.com/. Free, with an honesty payment if you like it

  • Duckie2hh on 26/04/2022 - 11:56
    +3

    ME bank offers the thing that you are after.

  • moph on 26/04/2022 - 12:18
    +8

    The bank you are looking for is Up - https://up.com.au/
    Thank me later

    Does not using these give me a better credit score which will help in getting a home loan later?

    Nope, that's not how it works in Australia. You do not have to 'build credit'. You have 'good credit' by default; your credit score is primarily affected by bad events, and in their absence, it is maintained or slowly improves. All you have to do is pay your bills and don't make too many credit applications.

    Recommend the reddit forum r/AusFinance for your basic finance questions https://www.reddit.com/r/AusFinance/

    • here for deals on 26/04/2022 - 13:39

      Thanks for that reddit suggestion. I have more questions, looks like that subreddit is a good start place.

    • here for deals on 26/04/2022 - 13:57

      I just had a look at Up bank's website. Looks like it is a relatively new bank with a funky website design.
      The impression I get is that it is the 'new age' bank appealing towards younger age groups.
      How reliable, in your opinion, is this bank? If you don't mind me asking, do you use this bank? If so, what's your review compared to other banks you've used?
      Sorry if my questions feel like a survey lol.

      • moph on 26/04/2022 - 14:20
        +3

        Yes, I've been using Up for almost 3 years.
        Yeah, it appeals to younger users - but I suspect that I'm a fair bit older than you, and it appeals to me!
        In terms of reliability, it's a bank - it has a banking licence in the highly regulated Australian financial industry. They're all pretty reliable! It's owned by Bendigo and Adelaide bank and uses their financial services in the background. You have the full government Financial Claims Scheme backing for up to $250K. I don't see any reason to be concerned about their reliability, but if you can point to any specific concerns then I'd like to consider them.

        It's the difference between an iPhone and a nokia 3210. Sure, if you only want to make calls and send sms, maybe you're happy with the nokia. But, it's 2022! Better things are possible, why not use them?

        BTW, I'm an Up user and fan, but there are other 'neobanks' that provide similar features.

        • o53djz7qTPY4der on 26/04/2022 - 14:27
          +2

          I too am an Up user. It's probably the best banking app I have ever used. As Moph said, they are own by Bendigo Bank - feels as safe as banking with Bendigo.

          The card is pretty too.

        • Typical16-bitEnjoyer on 26/04/2022 - 16:02
          +2

          Another Up user here. Best app by far. I use it for my day to day transaction account and will probably switch all my other accounts soon.

        • Stopback on 26/04/2022 - 20:17

          Got to check security. Do they have two factor. How good are they on refunds if you get hacked.

          And check how good is support if you have a lot of funds and can't transfer out for a reason. Can you call somonee.

          Still can't really go wrong with any one.

          • moph on 26/04/2022 - 23:35

            @Stopback: They don’t have 2FA, but do any banks for normal personal accounts?
            You can transfer up to $30K per day.
            They don’t have phone support, but they do have a support chat built in to the app and respond very quickly.

            • o53djz7qTPY4der on 27/04/2022 - 09:23

              @moph: The lack of 2FA on Aussie bank apps is staggering, Up are not the only one's lacking in this regard.

            • Typical16-bitEnjoyer on 27/04/2022 - 14:25

              @moph: 2FA is a bit superfluous when Up is a phone app only.

        • here for deals on 28/04/2022 - 14:42

          After digging more into Up bank, I am inclined towards it.
          Out of curiosity, what 'other neobanks' are these you're talking about? Can you name a few? Please.

          • moph on 28/04/2022 - 15:12
            +2

            @here for deals: I’m usually happy to share what I know, but it makes me feel like my time and knowledge is not being respected when people do not bother to do the most basic, single google search level research before asking. How about googling “neobanks Australia” and see what you get?

          • Typical16-bitEnjoyer on 28/04/2022 - 16:02
            +1

            @here for deals: 86400 is the other main one. Backed by NAB. I trialled both but preferred Up and their app.

    • tharlow on 26/04/2022 - 20:08

      Thank me later

      I’d like to thank you now! But it’s actually later, because you typed that more than seven hours before my reply. So I guess I’m thanking you later. If I remember to, that is

      • moph on 27/04/2022 - 00:43

        Glad to help spread the good word of Up

  • rektrading on 26/04/2022 - 12:39
    -5

    Remember, less is more.

    People keeping multiple banks accounts will waste time managing them.

    • tharlow on 26/04/2022 - 20:10
      +2

      Don’t know why you’re getting negged for a simple truth. Make pain your friend!

      • rektrading on 26/04/2022 - 20:13
        +1

        I have a cult of bots following me around.

  • Rako on 26/04/2022 - 18:42
    +5

    86400 I've been using this account since 2019 pays better interest than Up. Received this update from them last week just in time for what you want!
    From this month, you'll be able to open up to 10 Save accounts, and in each one, you can also add a Savings Target to help you smash those goals.
    Up interest 0.50% p.a
    86400 interest 1.20% p.a.
    Hope this helps!

    • Stopback on 26/04/2022 - 20:25

      Yeah that rate is horrible for up banking.

      Plus need to make five transactions.

      Much better interest rates on market.

      1000 invested means. 50 dollars versus 120.

      • tharlow on 27/04/2022 - 03:18
        +3

        Hey buddy, you’re out by a factor of 10

        • Rako on 27/04/2022 - 07:58

          Is it $5 vs $12 ?

      • o53djz7qTPY4der on 27/04/2022 - 09:54
        +1

        People aren't using Up for the 'great' rate. It's the app.

    • bbinc on 27/04/2022 - 09:14

      Ubank 1.05% with conditional bonus - deposit at least $200 a month. No overseas spend transaction fees.Backed by NAB.

  • tharlow on 26/04/2022 - 20:01
    +3

    Roast me first if you have to

    Two posts so far — both asking for help. What a leech!

    But seriously — welcome.

    https://financialindependenceaustralia.com/which-bank-accoun…

    The Barefoot Investor’s money management plan involves dividing your income into three buckets.

    You may also find his books interesting

    • here for deals on 27/04/2022 - 10:04

      Thank you!

      I have heard the term financial independence recently and made a mental note of following that up. A quick research online showed me interesting concepts such as FIRE. I thought I would first learn and maintain financial discipline and then think about FI, investing and all that.
      I mean I should first arrive at a stage where I make enough money to have a sizeable savings.

  • furys12 on 27/04/2022 - 08:47

    this is apparently quite normal in a few other countries but not so in aus, seems like there are some options for sub-accounts, fwiw for those looking at the big banks, you can open a decent number of "accounts" with ANZ with no issue or extra cost, ANZ are of course still holding onto that account fee for the "Main" access account which they will ever so graciously pay back if you deposit x amount a month, but beyond that i have for example 4 other (online saver) accounts, so a total of 5 accounts, i still use a spreadsheet to further organise myself but this separation helps me

    of course you have to apply for each account, a relatively simple affair but its not instant, but i've never had an issue

    • silenthillrocks on 27/04/2022 - 10:27

      I thought it was $5 per month per account, is there any extra info online on free sub accounts?

      Edit: Oh I see you mentioned the extra accounts are savings accounts. But those wouldnt have a debit card right?

      • furys12 on 28/04/2022 - 14:22
        +1

        they do not have a card no, i didnt think about that, i have no need to spend money directly from the "sub-accounts" so its never been a problem

  • thestig on 27/04/2022 - 09:21

    I use multiple accounts with CBA to manage money. It's worked really well for me for quite a long time. I spend less than 5mins each time pay comes in transferring the budgeted amounts to the various accounts.

    I tried having one account and using a spreadsheet to allocate the amount to various things but found it was harder because when I want to see how much I have left for discretionary expenses for example I'd need to update the spreadsheet for whatever has been spent, whereas the multiple accounts shows me exactly how much I have for each purpose at any point in time.

    The other complication I include is a points earning credit card for bills, this is just paid off from the bills account each month. Bills are budgeted for with a margin added so don't really need to monitor this account too much. If I use the credit card for a significant expense to earn points I just transfer the money from the relevant account (discretionary, travel, etc) to the bills account where the credit card is paid from.

    My accounts are offset accounts though so interest earning isn't a factor.

    With interest rates so low I'd suggest that sticking to your budget will save you more money than having every cent earning higher interest in a single account. If you have significant funds in your savings account, you could put this account with another bank earning higher interest.

    Try the various ideas posted here and see what helps you stick to your budget. Different things will work for different people.

  • bbinc on 27/04/2022 - 09:33
    +1

    Good on you for structuring your finances! You might find googling Canstar transaction accounts helpful, especially checking the criteria they used. Canstar provide free advice on lots of finance products.They assessed a lot of providers and recommended two, One of them - Qudos, apparently has good budgeting tools in it's app. I have other products with Qudos (formerly Qantas Credit Union), and their personal phone contact is fabulous.The HSBC account has 2% cash back on tap and pay under $100.
    Hope you find an account or two that meets your needs! If you buy stuff from overseas (or travel) you may want to include cards that do not charge overseas purchase fees (usually about 3%). Don't be afraid to switch banks until you find the right one for you. I've been with my main transaction bank for over 30yrs because it's fee free and totally hassle free, but have other accounts I use for OS transactions, high interest savings, etc etc.

  • Lastchancetosee on 27/04/2022 - 13:50

    Don't get hung up on the Big 4 for credit rating. This might have been true decades ago, but not any longer. I worked for CBA and ANZ in a past life, so had accounts with them for many years
    but ditched them about six years ago for ING. The service was better and cheaper and it was easy to set up online.

    I've switched to Bank Australia more recently
    because it is a community bank and has strong commitments to environmental sustainability, gender equity, and Indigenous Australians. The customer service has been excellent to date, and you can set up any number of accounts for savings, bills, etc. There are fewer branches and ATMs, but as I do 99.9% of my banking online, this isn't a problem.

    ME Bank and Beyond Bank are also good ethical options to consider.

    Great that you are getting yourself organised financially, even with limited means.

    • here for deals on 27/04/2022 - 15:33
      +1

      Interesting. I did not consider the ethical side of banking prior to your comment. Thanks for that perspective.
      Funnily, your comment made me think the last time I went to an ATM. It was more than two and a half years ago when I had to buy something on FB marketplace using cash, haha.

  • neezy on 27/04/2022 - 16:09
    +1

    I did the same. Sub-Account or "Buckets" as they are known.

    For CBA, your Smart Access is your main account (that has a fee if you don't deposit $2000/month). NetBank Saver are you 'sub accounts' or 'buckets' or 'folders' if you will. These don't have any fees. You can create them on your app I am pretty sure, or maybe you have to go the the website. You can have up to 5 I believe. But you have to transfer from NetBank Saver into Smart Access if you want to use that money i.e. you cant transfer/pay from NetBank saver to anywhere else beside your Smart Access account.

    I automatically transfer specific amounts into specific accounts after my pay goes in. Don't need to manage anything really, it's all automatic. I can adjust the specific amounts for the auto transfer if things change e.g. pertol prices/driving more. Much easier for me to track things, esp cause some stuff is due weekly, fortnightly, monthly, quarterly, binannual, or annually. e.g. one of my Netbank Savers is for all car costs, the transfer amounts are for rego, insurance, fuel, tolls/parking etc.

    full disclosure, I have accounts with the big 3, and heaps of sub accounts and joint accounts… prob like 15 all up, lol. but hey, it works for me ;-P

    • here for deals on 27/04/2022 - 16:47

      15 accounts in total

      I'm having confused feelings here. I want that level of micro-management and somehow at the same time I want as much less clutter as possible. Anyway, 15 is a lot, you do you. Also, thanks!

      • neezy on 28/04/2022 - 06:09
        +1

        Yeah, micro management is def the term that clarified everything for me. I didn't realise that's what i was doing. And to some extent it can be harder to manage, esp if costs aren't consistent 🤔

        Then I moved to more of a ratio system, something like 50% save, 30% live, 20% play kinda thing. Thn tweak what I knew e.g. repayments. And didn't have to worry about stuff as inconsistent as food costs, which fluctuate heaps with me. Since there was obvs leftover after the bills were accounted for, it worked. So long as it was separated from the Play money, I had enough 😁

        As for the 15 over 3 banks 😅 tbh, majority of them were created from multiple home loans and moving bank to banks (7) plus joint accounts with my wife (3).
        Everything is auto so I kinda ignore most of em, so it's not like it's hard to manage. I do like that I can see how much I have where and for what though (when I want)

        But anyway, the main takeaway from me, is that yes, you can create Netbank Savers (i.e. sub-account) on your already existing CBA account. No, I don't recommend opening multiple BANK accounts (unless the PROs out weigh the CONs) 😊

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