Last week I decided to take stock of my bank accounts and I realised I had 5 different online savings accounts with various institutions. Whilst these are all free it had created so much extra clutter to my mind and my finances.
I decided I only wanted one savings account which I would use to put only a little away each month and so started my research game. I shut down all my useless accounts and opened up a UBank USaver account which I have started contributing to.
Here is why:
The interest rate is high
Currently the UBank Saver has one of the highest interest rates on the market at 4.66 % (this is inclusive of a 0.7% bonus if you deposit at least $200 per month which is great for implementing forced savings). Even without the bonus rate it beats some of the major banks!
It’s quick to open
It literally took me less than 5 minutes to open the account online. I did not need to use my lunch break to find a branch, wait in line for half an hour and spend another half hour trying to turn down the industrious up sell of branch staff.
You can even do ID verification checks online straight away so that you can easily move your money in and out!
It does not need to be linked to an account
Most of the banks require you to have a transaction account linked to your online saver for you to be able to have the product.
With the USaver there is no such catch. I can have an account anywhere I want to transfer my money in and out. Freedom of choice is definitely a pro.
I can track my savings
Everytime you log into your account you get an updated graph of your previous transactions and your savings goals. This means it easier to see what you are doing to get where you want to be!
There are also a variety of links to articles or other information pages which may help you in achieving your savings goals.
I got customer support
I did have a question about my account so I rang the number at probably one of the peak times-just before end of work at 5pm on a Friday afternoon. Someone answered straight away (they weren’t in some foreign country) and they dutifully answered all my queries in a clear, succinct way.
Not only that, they were genuinely interested in how my day was going. You can also ask a question online, or you can even skype Ubank which means I do not even need to leave my desk to talk to someone.
Some of you may be worried that UBank is all online however since it is part of National Australia Bank (NAB) you do not need to be worried about safety or losing your money. I definitely recommend it-there is a reason it was awarded Money Magazines Best Savings account.
I can also pay my savings account via BPAY
UBank today announced that they are offering customers the ability to BPAY to their online savings accounts. This means you can now treat your savings account as a bill, something I’ve always wanted.
As savings are often overlooked, I see treating your weekly, fortnightly or monthly savings as just another bill you are forced to pay. This makes you understand that saving money is not negotiable and able to rapidly increase your savings account balance with little to no effort.
Benefits of paying your savings through BPAY
You can schedule a regular payment in your online banking. I often schedule my bills ahead of time and only pay them when the closing date is near. You can now setup your savings no different and ensure that on any given day of the month – a transfer is initiated and noted in your BPAY history.
A few tips to boost your savings strategy
Round up your savings ammount as much as you can, e.g. if your bank balance is $1,186 – don’t just deposit $100 – deposit $106 or $186 and keep your bank account nice and rounded.
Also consider automating the payments not only through BPAY but through your employer. Many employers let you designate multiple accounts to get paid to and a percentage split of your pay. You could put 1% of every pay cheque away and you would never even notice it. It would however add up over the long term. In fact, I am going to do this right now!