How Much Savings Do You Keep in Your ubank / BoQ / Similar Smaller Bank ?

xyzabc123 on 05/06/2023 - 09:51
Last edited 05/06/2023 - 10:20

How much savings are you comfortable leaving in your primary savings accounts ? Especially those banking with smaller banks like uBank / BoQ / etc ?

I know there is deposit insurance upto 250K per bank - but i somehow feel a bit uneasy to leave all savings in one bank even if that insurance is there.
I have been saving up for buying a house but decided not to buy this year, but also getting nervous about how much should I keep in savings account.

The opinion I am looking to get from everyone is - at what point ($ amount in the account) do you start looking to split up into another account ?

(Also make me wonder how do cashed up people manage this ? )

Poll Options

  • 13
    Between 50k-100k per account
  • 4
    Between 100k - 200k per account
  • 77
    Upto the 250k per account insurance limit
  • 9
    Over 250k
  • 19
    Below 50k OR I dont think about this
Financial Bank Account Savings Account

Comments

  • Taro Milk Tea on 05/06/2023 - 09:52
    +1

    nice try ATO

    • coffeeinmyveins on 05/06/2023 - 10:10
      +8

      You realise that all savings/bank accounts self report to the ATO with your details?
      It's why you don't submit a savings account summary at the EOF, they already have it.

      • Fergy1987 on 05/06/2023 - 11:14
        +3

        Sounds like something the ATO would say

      • burningrage on 05/06/2023 - 14:50

        I could be wrong but they may know your income/expenses (in/outs) but not necessarily balance.

        It would be very dangerous for them to know because of the potential of being weaponized for erroneous reason. In certain country which I won't name, Presidents use this information to approach high-wealth individuals for money or their taxation would be devised to target these people in order to "teach" them a lesson.

  • Nugs on 05/06/2023 - 09:57
    +3

    where's the zero, or at least <$50k
    .

    • coffeeinmyveins on 05/06/2023 - 10:11
      +8

      Sir, this is Ozbargain. Everyone drives a Toyota Camry, has seven negatively geared properties and 500k in cash. We also all wear a $5 casio watch from the 80s and meal prep on weekends.

      • xyzabc123 on 05/06/2023 - 10:17

        Lol, nice.

        seven negatively geared properties and 500k in cash

        Thats the premise that led me to asking this question here.

        Have added a below 50k option now as well.

  • Shadowsfury on 05/06/2023 - 10:13
    +1

    ubank is owned by NAB - so its bigger than you might think underneath

    Wouldn't have an issue having money in BoQ

    If you're that worried and OK to take the hit on lower interest then sure split it up once you hit $100k or so

    • xyzabc123 on 05/06/2023 - 10:16
      +1

      This has got me thinking - does the deposit insurance under the ADI apply to the combined balances if you have both NAB and uBank accounts ?
      Hopefully not just one of the lower balances ?

      • kawinuyo on 05/06/2023 - 11:32
        +3

        Yes, it's $250 000 per person per adi, so you also don't want to save over 250 with different banks by are all actually one adi

      • Essem on 08/06/2023 - 06:13

        Yes, UBank and Citibank owned by NAB (maybe others) so combined balances over all accounts up to $250k covered.

  • pegaxs on 05/06/2023 - 10:17
    +3

    Lol @ all the tightarses with up to $250k in cash…

    It’s like the “how much is your yearly pay?” threads and somehow, 90% of this sites users are on $150k+/year

    • coffeeinmyveins on 05/06/2023 - 10:19
      +1

      Unsure what your point is?

      Ozb definitely skews toward a particular demographic, this isn't exactly /r/frugal

      • pharkurnell on 05/06/2023 - 10:30
        +8

        I think he is suggesting most people here are full of shit….

        hes quite probably right.

        YMMV

        • coffeeinmyveins on 05/06/2023 - 10:43
          +1

          Not really, a lot of the people on OZB are in tech and 150k isn't that absurd. I'm on more than that and have more than 250k in savings.

    • dtc on 05/06/2023 - 10:37
      +11

      There is a reason why people have $250k in cash

      Its because they are tightarses

      There seems to be a perception that once you have a few $10k spare or a 6 figure income you can go wild, not hunt down bargains, eat out every day or whatever. You do that and you dont end up with $250k in cash. So the people you see on ozbargain are the ones who are tightarses and who save and have 'extra' money.

      • McSquintus on 05/06/2023 - 11:11
        +2

        Yep or they could be saving for a house.

        • Ghost47 on 05/06/2023 - 20:14
          +1

          Or they just don't buy dumb things like SUVs, caravans and new phones to keep up with the Jones'.

        • outlander on 05/06/2023 - 20:20

          Nobody 'saves' for a house. They increase in price faster than you can put money away.

    • brendanm on 05/06/2023 - 10:50
      +7

      I just enjoy clicking the highest option to skew the polls, I'm sure I'm not alone.

    • onetwothreefour on 05/06/2023 - 10:53
      +3

      I answered the question as "how much would I feel comfortable about keeping in one account" not how much do I have.

      All of my savings are in my offset anyway, only just started putting money into a HISA.

  • Malik Nasser on 05/06/2023 - 10:57

    You should keep up to 6 months worth of expenses in your bank account (up to $250k for those big spenders).
    All else should be invested where your rate of return should be higher than just leaving it in the bank.

    With each ADI covered up to $250K, why would you be worried about smaller banks?

    The Australian Financial Claims Scheme (FCS) is funded by the Australian Government. The Government provides initial funding to the FCS when it is activated, and this funding is then recovered through the liquidation process. Any shortfalls in the recovery process are met by the Government through an industry special levy.

    The FCS is a government-backed safety net for deposits of up to $250,000 per account holder per ADI. It also covers most general insurance policies for claims up to $5,000, with claims above $5,000 eligible if they fulfil certain criteria.

    The FCS was established in 2008 in response to the global financial crisis. It is designed to protect depositors and policyholders from the potential loss of their funds in the event of a financial institution failure. The FCS has never been activated, but it provides an important safety net for the Australian financial system.

    Here are some additional details about how the FCS is funded:

    The Government provides initial funding to the FCS when it is activated. This funding is used to pay out depositors and policyholders whose funds are protected under the FCS.
    The Government recovers the initial funding through the liquidation process. This means that the Government is repaid from the assets of the failed financial institution.
    If there is a shortfall in the recovery process, the Government meets this shortfall through an industry special levy. This levy is paid by all ADIs in Australia.
    The FCS is a valuable safety net for the Australian financial system. It protects depositors and policyholders from the potential loss of their funds in the event of a financial institution failure. The FCS has never been activated, but it provides peace of mind for Australians who have money in banks, credit unions, and building societies.

  • Fergy1987 on 05/06/2023 - 11:13

    Never had to worry about being over the 250K insurance limit……….must be nice

  • Eeples on 05/06/2023 - 12:17

    Option "up to 250K" is from Zero to $249,999.

    Is probably a little confusing.

  • payless69 on 05/06/2023 - 12:47
    -1

    It is 5 grapes a month on single transactions to hoop a Dutch.
    Microbank Ubank is now dropping extra low on the ASX…..
    BOQ is running out of bananas….

  • Ghost47 on 05/06/2023 - 14:11

    Personally I don’t keep more than $100k in a HISA for that reason, who knows how long it could take the government to pay out if a bank run or bank collapse was to occur. Not worth the risk.

  • dasa on 06/06/2023 - 09:08

    what is saving in a bank never heard of it.

  • BeamMeUp on 08/06/2023 - 23:30

    I have in it as much as i can up to the account max. Been doing this for years and not lost 1 sec of sleep. UBank is owned by NAB. The interest this one and ING are paying at the moment gets me excited at the end of each month.

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