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The Top 5 Best Savings Accounts Right Now! · She's On The Money

0:00
Speaker 1: Hello.
0:01
Speaker 2: My name's Santasha Nabananga Bamblet. I'm a proud Yr the
0:05
Speaker 2: Order Kerney Whalbury and a waddery woman. And before we
0:08
Speaker 2: get started on She's on the Money podcast, I would
0:11
Speaker 2: like to acknowledge the traditional custodians of the land of
0:14
Speaker 2: which this podcast is recorded on a wondery country, acknowledging
0:18
Speaker 2: the elders, the ancestors and the next generation coming through
0:23
Speaker 2: as this podcast is about connecting, empowering, knowledge sharing and
0:27
Speaker 2: the storytelling of you to make a difference for today
0:31
Speaker 2: and lasting impact for tomorrow.
0:33
Speaker 1: Let's get into it. She's on the Money, She's on
0:37
Speaker 1: the Money.
0:57
Speaker 3: Hello, and welcome to She's on the Money the podcast
1:00
Speaker 3: People who Want Financial Freedom? My name is beck Syed
1:03
Speaker 3: and Victoria de Vine. Do you know what I love
1:05
Speaker 3: most about end of year?
1:07
Speaker 1: The parties?
1:08
Speaker 3: That is, that's probably top of the list. But speaking
1:11
Speaker 3: of list, it.
1:12
Speaker 1: Doesn't work for the content that you're trying to create here, fortunately,
1:15
Speaker 1: I'm so sorry. Wow, what do you look forward to most?
1:19
Speaker 3: Perfect? If we could be a little bit more robotic
1:22
Speaker 3: next time?
1:22
Speaker 1: I thought it was very organic.
1:25
Speaker 3: No, that was perfect. That was perfect.
1:27
Speaker 1: What do you look forward to the most speck.
1:29
Speaker 3: I love a list of like best of of like
1:31
Speaker 3: the year, et cetera, et cetera.
1:32
Speaker 1: I love a list like I don't know do use
1:34
Speaker 1: notion at work? I've heard about notion, but haven't I'm
1:37
Speaker 1: obsessed with notion. Yeah, if I can put it on
1:39
Speaker 1: a list in notion, it is on a list in Notion, Like.
1:42
Speaker 1: I'm actually obsessed with lists. Down it like lists for everything.
1:45
Speaker 1: My Christmas list, I have written every single baby list
1:48
Speaker 1: you can think of, so like a list for all
1:50
Speaker 1: the baby essentials, but then all the baby nice to
1:52
Speaker 1: have but not essentials but in the middle, and then
1:55
Speaker 1: all the baby luxuries, like we've broken them all up
1:57
Speaker 1: because I'm like, everyone's got so much to say. Yes,
2:00
Speaker 1: I love a list.
2:01
Speaker 3: I love a list.
2:03
Speaker 1: To do list. You can cross stuff off that you've
2:05
Speaker 1: already done, bess true, and then you feel really productive.
2:08
Speaker 3: It feels really good. Sometimes I put things in there
2:10
Speaker 3: that I forgot to put in, but I actually have
2:12
Speaker 3: done it.
2:12
Speaker 1: That's what I do, and then I cross it off.
2:14
Speaker 1: It'll be like do washing, and I'll be like, sorry,
2:17
Speaker 1: washing machine, I'm a genius. Look at this long list
2:20
Speaker 1: that I have now completed.
2:21
Speaker 3: It feels really good.
2:22
Speaker 1: But what type of lists are we talking about, Beck,
2:25
Speaker 1: that you're super in love with today?
2:26
Speaker 3: Okay, So I'm thinking like it's kind of an all rounder.
2:30
Speaker 3: It's like, at the end of the year, we're thinking
2:32
Speaker 3: about our finances, think about ournews, resolutions, We're thinking about
2:36
Speaker 3: all of those kind of things. So I guess like
2:38
Speaker 3: today I'm mainly wanting to know about Oh well, let's
2:42
Speaker 3: talk finances.
2:42
Speaker 1: Yeah, I feel like you guys came here to learn
2:45
Speaker 1: about finances, not baby lists.
2:47
Speaker 2: Yeah.
2:47
Speaker 3: Do you feel like that's something that is in your
2:49
Speaker 3: wheel house?
2:50
Speaker 1: I don't know. I feel like this podcast, she's on
2:52
Speaker 1: the money, it's not she's on the baby list, but
2:56
Speaker 1: that is actually the garden path. I led you down,
2:58
Speaker 1: I said, do you like lists?
3:00
Speaker 2: Said?
3:00
Speaker 1: I love lists, But I don't know how enamored you're
3:03
Speaker 1: going to be with this list, but I know the
3:04
Speaker 1: rest of the community is going to be. So today
3:07
Speaker 1: I thought that I would talk about the top five
3:10
Speaker 1: best savings accounts right now. So we've done the research, Beck,
3:14
Speaker 1: I have gone and looked absolutely everything up, done a
3:17
Speaker 1: little comparison. Don't worry, we'll obviously post this on Instagram,
3:20
Speaker 1: so you don't need to whip out a pen and
3:21
Speaker 1: paper to remember it all. We've got your back, made
3:25
Speaker 1: another list, sent it to oographic designer. Oh yeah, gosh,
3:29
Speaker 1: she's good. But today we're going to be talking about
3:31
Speaker 1: the top five best savings accounts.
3:33
Speaker 3: I actually can't wait for this. But before we do
3:35
Speaker 3: get to the list, fear, I'd like to ask a
3:36
Speaker 3: few things. This may be super obvious, but can you
3:39
Speaker 3: find a savings account?
3:41
Speaker 1: I feel like this is a good one because like
3:43
Speaker 1: lots of people will be like, but isn't like my
3:46
Speaker 1: normal bank account? My savings account because that's where I
3:48
Speaker 1: keep my savings makes sense, Okays account is a specific
3:54
Speaker 1: type of financial account that is opened with a financial institution.
3:58
Speaker 1: So a lot of people will go, oh, that banks,
4:00
Speaker 1: but it could be like a credit union or something.
4:02
Speaker 1: It's not just banks that offer savings account for the
4:05
Speaker 1: point of saving money rather than spending it. So you
4:08
Speaker 1: would know this as kind of like a transactional account.
4:11
Speaker 1: So that's usually where all your pay goes into, and
4:14
Speaker 1: then you might transfer money from your pay to a
4:16
Speaker 1: specific savings account. So the idea of a savings account
4:20
Speaker 1: is to easily deposit money on a regular basis to
4:23
Speaker 1: earn monthly interest that then allows our savings to grow
4:26
Speaker 1: even further, which is, let's be honest, very sex very nice,
4:30
Speaker 1: very very nice, not bad at all. Usually savings accounts
4:34
Speaker 1: don't come with debit cards because they don't want you
4:37
Speaker 1: to spa easily.
4:38
Speaker 3: That makes sense.
4:39
Speaker 1: Yeah, So BECK another major benefit of all savings accounts
4:43
Speaker 1: in Australia that are eighty iy's. So an ADI is
4:46
Speaker 1: an authorized deposit taking institution and so a bank or
4:49
Speaker 1: a credit union would have to register with the government
4:52
Speaker 1: to become an ADI. You don't just automatically become one, right,
4:55
Speaker 1: So an authorized deposit taking institution BECK is a institut.
5:00
Speaker 1: It could be a credit union, could be one of
5:01
Speaker 1: the Big four banks, it could be any other bank.
5:03
Speaker 1: But they're registered with the government and that means they're
5:06
Speaker 1: protected by what's called the FCS. So that's the Financial
5:10
Speaker 1: Claim Scheme, which is a government backed safety net for
5:12
Speaker 1: deposits of up to two hundred and fifty thousand dollars
5:16
Speaker 1: per account holder. So other investments they're not covered under
5:19
Speaker 1: this same scheme. But essentially it means BECK you can
5:23
Speaker 1: stress less if you've got like, let's say, you know,
5:26
Speaker 1: three grand in your savings account. You're like, but what
5:28
Speaker 1: happens if the bank fails and crashes. Oh, yeah, it's
5:32
Speaker 1: okay because the government guarantees it and you'll get your
5:35
Speaker 1: money back. If you're a baller and you have more
5:38
Speaker 1: than two hundred and fifty thousand dollars in that account,
5:41
Speaker 1: it means they will essentially guarantee up to two hundred
5:44
Speaker 1: and fifty thousand dollars, not per account, per person. So
5:47
Speaker 1: let's say you're a big dog and you've got one
5:49
Speaker 1: point five million dollars in your savings accounts, but you
5:52
Speaker 1: have multiple accounts, but they're with the same institution, so
5:54
Speaker 1: they're all with the same bank. They will only still
5:57
Speaker 1: guarantee up to two hundred and fifty thousand dollars. I
6:00
Speaker 1: have seen people who are a little bit anxious, though,
6:02
Speaker 1: they go, break this up. If I've got two hundred
6:04
Speaker 1: and fifty thousand dollars here at one bank, then I'm
6:06
Speaker 1: going to go get bank B. Yeah, then you're five
6:09
Speaker 1: hundred thousand dollars is guarantee?
6:11
Speaker 3: That works?
6:12
Speaker 1: Okay? Is going to be the next question, per institution,
6:14
Speaker 1: per account holder, not per account. If that makes sense.
6:18
Speaker 1: You can't just open another bank account and put the
6:20
Speaker 1: other two fifty in there. I mean, these are really
6:22
Speaker 1: rich people problems, like really unrelatable, but I want you
6:26
Speaker 1: to be able to understand what that actually means.
6:28
Speaker 3: Yes, if it came.
6:29
Speaker 1: Up, you know totally. Yeah.
6:31
Speaker 3: I don't why I'm so invested in this, Like, I'm like,
6:32
Speaker 3: this is something I want.
6:33
Speaker 1: To know what rich people are doing with their money,
6:35
Speaker 1: how they're breaking it up.
6:36
Speaker 3: Right, We've got to protect that stuff.
6:38
Speaker 2: I know.
6:38
Speaker 3: I love that. Okay, So are there different types of
6:41
Speaker 3: savings accounts?
6:42
Speaker 1: Yes, it's so fun. They're a number of different types.
6:45
Speaker 1: I'll go through them. So first we've got online savings accounts.
6:47
Speaker 1: Then we've got bonus interest savings accounts. Then we've got
6:50
Speaker 1: high interest savings accounts. Then we've got introductory interest savings accounts,
6:54
Speaker 1: and I will round it up with term deposits, which
6:57
Speaker 1: you would have heard of before. Right. Yes, So I'm
7:00
Speaker 1: not gonna like harp on and on and on about
7:02
Speaker 1: each of these. But an online savings account is essentially
7:05
Speaker 1: an account that is available online via the web or
7:09
Speaker 1: via an app, and it means that you can't go
7:12
Speaker 1: into a bank or a financial institution in person to
7:15
Speaker 1: access your funds, make a deposit or ask any questions.
7:18
Speaker 1: A really great example of this very popular here in
7:21
Speaker 1: Australia INGVA. They just don't have physical stores but they're
7:25
Speaker 1: an online banking institution. Does that mean that they are
7:29
Speaker 1: less than No, No, it just means they don't have
7:31
Speaker 1: physical stores for you to go into, which for some
7:34
Speaker 1: people is really important.
7:36
Speaker 3: Sure.
7:36
Speaker 1: Most commonly, these online savings accounts have a standard interest rate,
7:41
Speaker 1: which at the time of this podcast being dropped is
7:44
Speaker 1: around four point two percent. Okay, pretty sexy, because you
7:48
Speaker 1: remember when no one was getting any interest on their accounts,
7:51
Speaker 1: maybe like two years ago.
7:52
Speaker 3: Yeah, I remember it being like zero point zero five
7:55
Speaker 3: or something.
7:55
Speaker 1: One of the best things. So this is not the
7:57
Speaker 1: best thing for me. I have a mortgage. You do not,
7:59
Speaker 1: So in this circumstance, you are the winner here, my friend.
8:02
Speaker 3: Thank you.
8:02
Speaker 1: But whenever you hear that the cash rate is going
8:05
Speaker 1: up and people are like, oh my gosh, the mortgage
8:07
Speaker 1: rate is going up, so do your savings accounts. So
8:09
Speaker 1: if you're saving for your first home or you've just
8:11
Speaker 1: got some savings to the side, that's actually going to
8:14
Speaker 1: be benefited by the cash rate increasing because the bank
8:18
Speaker 1: is now going to start paying a high interest rate
8:20
Speaker 1: to you, and that's when we want to have our
8:22
Speaker 1: eyes peeled and go, hm, is there a better deal
8:24
Speaker 1: on off of here? I can't who else can I
8:27
Speaker 1: talk to?
8:28
Speaker 3: Yeah? I cannot believe that no one knows about that.
8:31
Speaker 1: I feel like some people do and take advantage of it.
8:33
Speaker 1: But when you're you know, sitting in essentially your chair back,
8:37
Speaker 1: you would have heard all of these negative money stories
8:40
Speaker 1: going around the media right now, like everyone's screwed, the
8:43
Speaker 1: interest rates are going up, what are we going to do?
8:46
Speaker 2: Well?
8:46
Speaker 1: Actually, if you're in a circumstance where you just have
8:48
Speaker 1: some savings and you don't have the overheads of a
8:51
Speaker 1: mortgage or like a property or any type of debt
8:54
Speaker 1: that you're repaying, yeah, you're actually in a pretty good
8:56
Speaker 1: position to recheck your savings account because you should be
8:59
Speaker 1: making sure that you're getting some money for the money
9:02
Speaker 1: that you've invested.
9:03
Speaker 3: Ah. That's right, very good to know.
9:06
Speaker 1: The next is bonus interest savings accounts. So while these
9:08
Speaker 1: are quite similar to the online savings accounts, bonus interest
9:12
Speaker 1: savings accounts offer their account holders what we call bonus
9:16
Speaker 1: interests for meeting certain criteria. So you've got to be
9:19
Speaker 1: careful because Sometimes they will just look like an online
9:21
Speaker 1: savings account and you'll be like, oh my gosh, I
9:24
Speaker 1: love this the interest rates like five percent or whatever,
9:26
Speaker 1: But you actually have to deposit a certain amount per
9:29
Speaker 1: month into that account to access that bonus.
9:32
Speaker 3: That's alligatya.
9:32
Speaker 1: You would have seen this before, right, Yeah. So the
9:35
Speaker 1: criteria is definitely going to vary depending on the banking
9:38
Speaker 1: institution and the account that you've decided to open, Like summer,
9:42
Speaker 1: I guess age related, you need to be under a
9:44
Speaker 1: certain age or over a certain age, or have like
9:46
Speaker 1: maximum deposits. So like if they're offering a very sexy
9:50
Speaker 1: interest rate back, they might be like, yeah, okay, like
9:52
Speaker 1: we'll give that to you max one hundred grand though,
9:54
Speaker 1: because like we're not going to give you millions of
9:57
Speaker 1: dollars for this. Yeah, So just be aware of those things.
10:00
Speaker 1: But they also usually have, as I mentioned before, a
10:03
Speaker 1: minimum deposit each month and or a certain number of
10:07
Speaker 1: transactions that you need to meet to get that bonus interest.
10:11
Speaker 1: So you've just got to be aware. Is that Dodge
10:13
Speaker 1: Beck No, not at all, it's actually just their criteria
10:16
Speaker 1: for paying it out. I think a lot of people
10:17
Speaker 1: will be like, well, why are they introducing criteria, it's
10:20
Speaker 1: like because obviously they want to attract you to their product,
10:24
Speaker 1: but they also want to make sure it's financially.
10:26
Speaker 3: Feasible totally, like you are actually.
10:29
Speaker 1: Going to get it, yeah, and they're actually going to
10:31
Speaker 1: have a client using the account, yes, and actually depositing
10:35
Speaker 1: money on a regular basis into that account, So that
10:38
Speaker 1: makes sense. But by meeting that criteria, you'll receive a
10:41
Speaker 1: base interest rate in addition to the bonus rate. So
10:44
Speaker 1: for example, the base rate might be very low, might
10:47
Speaker 1: be like zero point five percent or something like that,
10:50
Speaker 1: or the bonus interest rate could be as high at
10:53
Speaker 1: the time of recording, beck like five point one percent, right,
10:57
Speaker 1: which is very very sexy. Therefore, the total will then
11:00
Speaker 1: be five point one five percent if you meet the criteria,
11:04
Speaker 1: and then if you don't, you'll only like default back
11:07
Speaker 1: down to that point zero five percent. Sure, obviously a
11:10
Speaker 1: rate that can be much lower than if you've just
11:12
Speaker 1: gone and opened like an online savings account. So like
11:15
Speaker 1: if you're seeing the shiny number of like, oh, this
11:17
Speaker 1: bonus interest savings account looks really good because I can
11:20
Speaker 1: get five point one five percent, because you know, the
11:23
Speaker 1: one we talked about before, was four point two totally, like, well,
11:26
Speaker 1: I want the higher interest rate. Can you meet the
11:28
Speaker 1: criteria consistently or would it just be better to have
11:31
Speaker 1: just a standard online savings account get that four point
11:34
Speaker 1: two percent, like basically guaranteed ex samply.
11:37
Speaker 3: Yeah, so I guess if you're like not guaranteed to
11:39
Speaker 3: be able to transfer or like meet the criteria every
11:42
Speaker 3: month or whatever it is.
11:43
Speaker 1: And that's like me leading you down the garden pass
11:46
Speaker 1: to once again go I am licensed to give you
11:49
Speaker 1: general advice. Yes, this is why it is so important
11:53
Speaker 1: to understand the differences because do you know how many
11:55
Speaker 1: people slide into my dms and they go, they what's
11:57
Speaker 1: the best savings account?
11:58
Speaker 3: Yeah?
11:59
Speaker 1: I wish i'd could tell you what the best is
12:02
Speaker 1: and we'll go through like the top five. But the
12:05
Speaker 1: best for you beck might actually be, you know, the
12:08
Speaker 1: bonus interest savings account because you do make those regular deposits.
12:12
Speaker 1: But for your best friend live, she might not be
12:14
Speaker 1: making those regular deposits, and the online standard savings account
12:17
Speaker 1: is going to just be better bang for her buck
12:19
Speaker 1: and work better. So it is one better than the other. No,
12:22
Speaker 1: it's going to depend on your criteria and your ability
12:25
Speaker 1: to meet that criteria. Does that make sense?
12:27
Speaker 3: That makes so much sense?
12:28
Speaker 1: So like you can't just get what your bestie has
12:30
Speaker 1: got because it sounded good. Yeah, it might not work.
12:32
Speaker 1: That's why we've got to do our own research. Yeah.
12:35
Speaker 1: I love that, but I did it for you, so
12:36
Speaker 1: keep listening.
12:37
Speaker 3: Thank you.
12:37
Speaker 1: The next is a high interest savings account. I feel
12:41
Speaker 1: like that one sounds the sexiest to me.
12:44
Speaker 3: Sounds so far, so good, so fast, so good.
12:46
Speaker 1: Let me tell you, let me tell you so. High
12:48
Speaker 1: interest savings accounts are again similar to bonus interest rate
12:52
Speaker 1: accounts because of the high interest rate that you're able
12:54
Speaker 1: to achieve if you use them properly. Sure, However, with
12:57
Speaker 1: high interest savings accounts, you were guarant heed this interest
13:00
Speaker 1: rate without having to meet monthly criteria. Very nice. This
13:05
Speaker 1: means there'll be one total interest rate that you'll earn
13:08
Speaker 1: each and every single month without having to make a
13:10
Speaker 1: certain amount of transactions or limit your number of withdrawal.
13:14
Speaker 1: So beck with this one, you might be going all right.
13:16
Speaker 1: Or a high interest savings account that just sounds a
13:18
Speaker 1: lot like your online savings account. You are absolutely correct. However,
13:24
Speaker 1: this could be at a physical branch as well, as
13:27
Speaker 1: you know being online, So your online savings account, let's
13:30
Speaker 1: just hypothetically call it ING, not an endorsement, just giving
13:34
Speaker 1: you a good example. It's ING that could actually be
13:37
Speaker 1: constituted as a high interest savings account, but it's only
13:40
Speaker 1: available online, so we're changing the rate of that. Obviously,
13:44
Speaker 1: when they're in person, in person companies, in person businesses
13:48
Speaker 1: more expensive to run back, so you're usually going to
13:51
Speaker 1: see a lower interest rate. So instead of seeing something
13:54
Speaker 1: like four point two, you might be like seeing three
13:56
Speaker 1: point five to four point two, but they might not
14:00
Speaker 1: be as stable as an online bank. An online bank
14:04
Speaker 1: is always, from my research, going to have the ability
14:07
Speaker 1: to give you a higher interest rate for a longer
14:10
Speaker 1: period of time because they have less overheads, and that's
14:13
Speaker 1: their main attraction, right, But everybody loves ING one because
14:17
Speaker 1: the Barefoot Investor was their biggest fan, but two because
14:21
Speaker 1: of the ease of access and the lower fees that
14:24
Speaker 1: are associated.
14:25
Speaker 3: I was going to say, because it sounded great, great, great,
14:28
Speaker 3: I was like, where's.
14:31
Speaker 1: Usually it's just with a quote more expensive institution and
14:34
Speaker 1: therefore you might get less back. Does that mean that
14:37
Speaker 1: it's not a high interest savings account. No, it's still
14:39
Speaker 1: a high interest savings account, and you know what some
14:42
Speaker 1: of them could have. Oh hey, Beck, we're going to
14:44
Speaker 1: give you five percent if you sign up with us now.
14:47
Speaker 1: But you often see in person banks they will limit
14:51
Speaker 1: the period of time that you have that. So for
14:53
Speaker 1: someone like ing, they obviously hold the right to change
14:57
Speaker 1: it at any point. But you know, you might go
15:00
Speaker 1: when A and Z and they'll say for the first
15:02
Speaker 1: six months, and they'll be a lot clearer about what
15:05
Speaker 1: those parameters look like. Just good to know. Does it
15:08
Speaker 1: mean that one's worse than the other. No, Again, it's
15:10
Speaker 1: about what works for you. And that's Beck, where we
15:12
Speaker 1: lead into the second last type of savings account that
15:15
Speaker 1: I want to talk about, and that's that introductory interest
15:18
Speaker 1: savings account. So if you're willing to change your savings
15:21
Speaker 1: account on a semi regular basis, you could say an
15:24
Speaker 1: introductory interest savings account could actually be a good option
15:28
Speaker 1: for you. The accounts offer much higher introductory interest rates
15:33
Speaker 1: than I guess what you'd call the market average. However,
15:36
Speaker 1: they usually only last for about four months before reverting
15:39
Speaker 1: back to a base level, So you've just got to
15:42
Speaker 1: read the terms and conditions. This is where it pays Beck,
15:44
Speaker 1: because I know if I asked you, let's be honest.
15:47
Speaker 1: I know you well enough to be a little bit candid.
15:49
Speaker 1: If I said, beckd you read the terms and conditions?
15:51
Speaker 1: What are you going to say?
15:52
Speaker 3: Definitely not?
15:54
Speaker 1: But why is it? Cause You're like, I don't get it.
15:57
Speaker 1: It's not worth my time, it's not worth the energy.
16:00
Speaker 3: I guess I've never read a single T and C
16:04
Speaker 3: in my life, and I fear why would I start now,
16:06
Speaker 3: even though it's something more important that's like money.
16:08
Speaker 1: Let's be honest, Like if Apple's like, oh, we've updated
16:11
Speaker 1: our terms.
16:11
Speaker 3: And conditions, not jumping on life.
16:13
Speaker 1: If you're like no, no, no, They're like, well they're here
16:15
Speaker 1: to read it, and I'm like, hmm, yep, yep, and
16:18
Speaker 1: then they're like, click this button. I read and understood
16:20
Speaker 1: the terms and conditions on them straight away. I would
16:23
Speaker 1: wonder I would love to see the statistics of quote,
16:26
Speaker 1: how long it took each person to read that document? Yes,
16:30
Speaker 1: because like, I'm sure that they have the tracking on
16:33
Speaker 1: the back end to go, oh, you know, bex terms
16:36
Speaker 1: and conditions. We sent her that update. Oh look, she
16:38
Speaker 1: opened it zero point two seconds later. She had already
16:41
Speaker 1: read and agreed to the terms.
16:43
Speaker 3: And conditions very fast reader, Like.
16:45
Speaker 1: That's the biggest lie ever told. Yes, I've definitely read
16:48
Speaker 1: the terms and conditions anyway. But what I want you
16:50
Speaker 1: to do in these circumstances, because it's financially beneficial to you,
16:54
Speaker 1: is just have a look at the t's and c's.
16:55
Speaker 1: They will be in plain layman English. It won't be confusing,
16:59
Speaker 1: I promise. I think a lot of us don't do it,
17:01
Speaker 1: especially when it comes to banking and financial services products,
17:04
Speaker 1: because it's overwhelming. You're like, I don't know what this is,
17:07
Speaker 1: Like I don't really want to have to go through it.
17:09
Speaker 1: But I promise they'll say introductory rate of you know,
17:12
Speaker 1: five percent for first four months, then we'll revert back
17:16
Speaker 1: to zero point five percent. Sure, so you actually know
17:19
Speaker 1: what you're signing up for, because if you don't want
17:22
Speaker 1: to have to change your bank account again in six months, yeah,
17:25
Speaker 1: probably not the product for you, beck, I guess.
17:28
Speaker 3: If like, and this is probably really silly thing to say,
17:30
Speaker 3: because it depends on the person against absolutely not. Well,
17:32
Speaker 3: I was gonna say, like, personally, I would be going
17:37
Speaker 3: for an introductory one. Yeah, after four months, be like
17:40
Speaker 3: my and go to a different one that is like we've.
17:43
Speaker 1: Got to put the work in.
17:44
Speaker 3: You've gotta put the work in.
17:45
Speaker 1: Put the work in. And also depends how many of
17:47
Speaker 1: us say we're going to put the work in. And
17:49
Speaker 1: then don't I see this in the credit card space,
17:52
Speaker 1: because how many people have done zero dollar transfers or
17:55
Speaker 1: balanced transfers of their credit card to another credit card
17:59
Speaker 1: and they're like, smash this out of the water because
18:01
Speaker 1: now it's zero percent. Yes, so they do it. No,
18:05
Speaker 1: then they revert back to the higher interest rate. And
18:07
Speaker 1: I'm like, I don't want to be a debbie downer.
18:10
Speaker 1: I don't want to be the bearer of bad news.
18:13
Speaker 1: But I can't be trusted, which means that a lot
18:16
Speaker 1: of you can't be trusted either. So we just need
18:19
Speaker 1: to be honest and go V would you actually in
18:22
Speaker 1: six months do that? I'll be like, I mean, if
18:24
Speaker 1: you forced me to, probably do it.
18:26
Speaker 3: Sure, But if you happen to remember happened to be
18:29
Speaker 3: in a productive mood on the day that you remember, like.
18:32
Speaker 1: My ADHD, He's gonna go do the list today of
18:35
Speaker 1: what the best bank account is and then we're gonna
18:37
Speaker 1: transfer to it, and I'm gonna get the motivation today
18:39
Speaker 1: to change it. Later down the track, I've already forgotten, babe.
18:43
Speaker 1: I'm looking at something else. But that's okay, because if
18:46
Speaker 1: you look at like someone like Jessica Ricci, Yep, she's
18:48
Speaker 1: a wizard. She definitely keeps up with stuff like that.
18:52
Speaker 1: She puts reminders in her calendar of like what time
18:55
Speaker 1: of the year to check these things, and like transfer that.
18:57
Speaker 1: She is who we all want to be when it
19:00
Speaker 1: comes to money. But this is like a do as
19:02
Speaker 1: I say, not as I do kind of podcasts. Sure
19:04
Speaker 1: you know. So? Anyway, moving on from interactory interest weight
19:08
Speaker 1: savings accounts to term deposits, you would have heard of
19:11
Speaker 1: a term deposit. I talk about it a bit more
19:14
Speaker 1: when we're talking about I guess investing, because it involves
19:17
Speaker 1: a bit more of a time commitment. So a term
19:20
Speaker 1: deposit differs slightly from a savings account on the premise
19:23
Speaker 1: that you actually can't make withdrawals from a term deposit
19:27
Speaker 1: until your quote term or the time limit has ended,
19:30
Speaker 1: whereas other savings accounts they allow you to make withdrawals
19:34
Speaker 1: as necessary. Don't get me wrong, Beck, you will be
19:36
Speaker 1: able to actually withdraw your money in an emergency if
19:39
Speaker 1: it's in a term deposit. But you forfeit the money
19:42
Speaker 1: that you earned. Oh so you would They would say, oh,
19:45
Speaker 1: well that five percent, you don't get that because you
19:47
Speaker 1: terminated the contract early, and that's part of it, right, Okay.
19:51
Speaker 1: So the benefit of having money in a term deposit
19:54
Speaker 1: means it's locked away, which works very well for someone
19:57
Speaker 1: like me, out of sight, out of mind, can't touch
19:59
Speaker 1: it with a fixed interest rate paid out either at
20:03
Speaker 1: the end of the term or on a monthly or
20:05
Speaker 1: annual basis, depending on how you've chosen. Usually a term
20:09
Speaker 1: deposit does require a minimum deposit, so they might go, oh,
20:12
Speaker 1: you have to have a minimum of five grand in
20:14
Speaker 1: this account, which in Australia the usual deposit is between
20:18
Speaker 1: five and ten thousand dollars For a term deposit. The
20:22
Speaker 1: term period can then range from a few months to
20:24
Speaker 1: many many years, and obviously the longer your term is
20:28
Speaker 1: for that usually correlates to a higher interest rate being paid.
20:32
Speaker 1: So like if you were to lock in a term
20:33
Speaker 1: deposit for three months, they're going to go, well, it's
20:35
Speaker 1: not very long as it beck, We'll give you three percent.
20:39
Speaker 1: But if you would like to give us your money
20:41
Speaker 1: for a year now we're talking, Does that make sense?
20:44
Speaker 3: That does make sense, but I'm so confused as to
20:46
Speaker 3: like what the benefit for the holder is, Like, you
20:49
Speaker 3: know what I mean.
20:50
Speaker 1: It's as safe a way to make money, so I
20:53
Speaker 1: don't want to say safer. It's a more conservative way
20:56
Speaker 1: to make money. So if we go back to, you know,
20:58
Speaker 1: the investment episodes, if you haven't listened to them, go
21:01
Speaker 1: and have a listen to them. They are really really important.
21:03
Speaker 1: We did like a mini series with Chares's which I
21:05
Speaker 1: think was really really powerful, and I'm quite proud of
21:08
Speaker 1: that work, to be honest. But you might be somebody
21:12
Speaker 1: who's not ready to bite the bullet with investing, Beck.
21:14
Speaker 1: But you go, I still have like ten or fifteen
21:17
Speaker 1: thousand dollars sitting here not going to use that might
21:19
Speaker 1: be for a house deposit, might actually just be your
21:21
Speaker 1: life savings that you're like, well, I'm never going to
21:24
Speaker 1: touch it. It's not your emergency fund. By the way,
21:26
Speaker 1: we do not put our emergency funds in term deposits,
21:29
Speaker 1: do we, Beck, No, No. By the way I'm looking
21:31
Speaker 1: at you, you're like, oh, I knew that.
21:33
Speaker 3: I just learned that right now, Which.
21:35
Speaker 1: It's very different for an emergency fund. An emergency fund
21:38
Speaker 1: is a certain amount of money that you have allocated
21:41
Speaker 1: to be able to access in an emergency, and I
21:45
Speaker 1: want to talk about that because so many of you
21:46
Speaker 1: will go, well, it's not working for me. Is that? Like,
21:49
Speaker 1: if you're saying that I can get five percent back
21:51
Speaker 1: on my money, you may as well lock it in
21:52
Speaker 1: a term deposits not being used right now. No, no, no,
21:56
Speaker 1: you need to be able to access your emergency fund
21:59
Speaker 1: in an emergent by just going up to an ATM.
22:02
Speaker 1: If you cannot do that, it is not in the
22:05
Speaker 1: right place. And that money is working for you. But
22:07
Speaker 1: it's not maybe working for money for you. It's working
22:10
Speaker 1: on your mental health and making sure you're financially secure
22:13
Speaker 1: and in an okay position. Like to me, an emergency fund,
22:16
Speaker 1: it doesn't actually have to be making money. When I
22:18
Speaker 1: was a bit younger and didn't have a mortgage, my
22:20
Speaker 1: emergency fund was in an online savings account, didn't have
22:24
Speaker 1: a debit card, but I knew that in an emergency,
22:26
Speaker 1: I could jump on my phone, transfer the money to
22:29
Speaker 1: my transaction account, and use it on my debit card
22:31
Speaker 1: if I needed to pay for anything. Sure, Now I
22:34
Speaker 1: have a mortgage, my emergency fund is sitting in an
22:36
Speaker 1: offset account to my mortgage because that just makes financial
22:40
Speaker 1: sense for me. Sure, I could go on and on
22:42
Speaker 1: about emergency funds, and I have in like the last
22:45
Speaker 1: five years of podcasting.
22:47
Speaker 3: She loves an emergency fund.
22:48
Speaker 1: I adore an emergency fund. But when it comes to
22:51
Speaker 1: a term deposit, it could just be that happy medium
22:55
Speaker 1: between you're not ready to invest, but you also want
22:57
Speaker 1: your money working harder for you than it currently is
23:00
Speaker 1: and getting a bit of return, but you're also maybe
23:02
Speaker 1: not ready to dip your toes in the water when
23:05
Speaker 1: it comes to investing. You might choose a term deposit
23:08
Speaker 1: so that at least the money that you've made is
23:10
Speaker 1: now making some money, even if it's less. Does that
23:12
Speaker 1: make sense?
23:13
Speaker 3: That does make sense.
23:14
Speaker 1: It's a bit more of a secure hmm. I would
23:17
Speaker 1: say investment.
23:18
Speaker 3: Okay, that is good to know, But I'm also curious
23:20
Speaker 3: about the actual bank. Why is it good for them?
23:21
Speaker 2: Like?
23:21
Speaker 3: How are they making money out of this?
23:23
Speaker 1: I love this question. Okay, so banks make money, but
23:26
Speaker 1: you putting your money into their bank account, right, and
23:29
Speaker 1: that doesn't make sense? But what do you think they
23:30
Speaker 1: do with that money? They lend it to people who
23:33
Speaker 1: want mortgages? And loans. Oh, so they're lending your money out.
23:39
Speaker 1: And as much as you probably didn't know this, and
23:41
Speaker 1: the banks are going to go no, no, no, we
23:43
Speaker 1: don't touch individuals like savings accounts. You've always got access
23:47
Speaker 1: to it, that is true, but they're funds under management,
23:51
Speaker 1: so the total amount of money that they have in
23:53
Speaker 1: their kitty. Essentially, the more that they have, the more
23:56
Speaker 1: they can lend out. And right now, while interest rates
24:00
Speaker 1: are going up, the banks are essentially cacking their decks
24:03
Speaker 1: a little bit, Beck, because they're going to need some
24:05
Speaker 1: more money because people who are in debt are maybe
24:07
Speaker 1: not making their own payments, so it makes sense to go, oh, Beck,
24:11
Speaker 1: we're going to entice you a little bit if you
24:13
Speaker 1: put more money in your bank account. Obviously your ten
24:16
Speaker 1: grand is not going to change the world. But if
24:19
Speaker 1: all the Becks in Australia are now putting more money
24:21
Speaker 1: into their bank account, that bank is more financially secure.
24:25
Speaker 1: So if you look at what it costs to get
24:28
Speaker 1: a mortgage at the moment, it will be higher than
24:31
Speaker 1: your average savings account. The savings accounts are always slightly
24:35
Speaker 1: under what the mortgage rate is for that bank. Right
24:38
Speaker 1: so banks are making money by you putting money in
24:40
Speaker 1: there and then they essentially lend the money out. Do
24:43
Speaker 1: not get me wrong. That is an incredibly simplified version
24:46
Speaker 1: of what happens because obviously the RBA, so the Reserve
24:49
Speaker 1: Bank of Australia, they manage what's called the cash rate,
24:54
Speaker 1: and often banking and financial services institutions will borrow money
24:58
Speaker 1: from the government or borrow money from even bigger institutions
25:02
Speaker 1: to lend out. But one of the ways that they
25:05
Speaker 1: keep money coming through the door is to have you
25:08
Speaker 1: have your money sitting in an account that ultimately they
25:11
Speaker 1: do have access to. Is it safe and secure? Yes,
25:14
Speaker 1: it's one of the reasons why the government has that
25:17
Speaker 1: guarantee scheme. Ye, it's why they go no, no, no, don't
25:20
Speaker 1: worry about e becleg you'll definitely get your cash back.
25:22
Speaker 1: But in the background they do have a lot more
25:25
Speaker 1: money to play with and lend out to other people.
25:28
Speaker 3: Okay, that makes sense. I've always been curious about that.
25:31
Speaker 1: I like that you asked, because it's one of those
25:33
Speaker 1: things that we often don't think about. Yeah.
25:36
Speaker 3: I'm always like, Okay, we're putting our money.
25:37
Speaker 1: Why are they paying me to have my money?
25:40
Speaker 2: Yeah?
25:40
Speaker 3: How are they making this money.
25:41
Speaker 1: They are making a lot of money.
25:43
Speaker 3: Okay, thee Now that I know how banks make money,
25:45
Speaker 3: my mind can be put to rest, and I think
25:47
Speaker 3: that let's go to a really quick break and on
25:49
Speaker 3: the other side of the break, the moment you've all
25:51
Speaker 3: been waiting for, including myself, the he's going to tell
25:54
Speaker 3: us her top five best savings accounts right now.
25:57
Speaker 1: Don't go anywhere, guys, it's juicy.
26:04
Speaker 3: Welcome back, OKAYV. I'm so excited. We've talked about the
26:07
Speaker 3: ins and outs of savings accounts and outside for the
26:09
Speaker 3: moment of truth. What are your top five best savings
26:12
Speaker 3: accounts right now?
26:13
Speaker 1: All right, Beck, are you ready for the top five
26:16
Speaker 1: best savings accounts?
26:17
Speaker 3: I'm sorry, ready, joke's on you.
26:18
Speaker 1: I'm going to do a caveat here because obviously they're
26:20
Speaker 1: not quote the best. They are just to the accounts
26:23
Speaker 1: that currently have the highest variable interest rate at the moment.
26:28
Speaker 1: I'm going to go through the maximum variable interest rate,
26:30
Speaker 1: who the institution is, what their standard variable rate is,
26:34
Speaker 1: whether there's an intro period or not, or if there's
26:37
Speaker 1: any conditions, and we're going to go obviously from lowest
26:40
Speaker 1: to highest.
26:40
Speaker 3: So you have to listen to the rest of my podcast.
26:43
Speaker 3: That's very clean.
26:43
Speaker 1: Yes, right, So first things first, we've got the Me
26:47
Speaker 1: Home Me savings account, and this has come up because
26:50
Speaker 1: it is like, it's not just the top five. I
26:52
Speaker 1: actually have six to present because in typical Victoria divine fashion,
26:55
Speaker 1: I said, I want to present five of the top
26:58
Speaker 1: five accounts. But then I also found one and it's
27:00
Speaker 1: the number one one, but it has a few extra
27:02
Speaker 1: terms and conditions on it. Sure, that was like, it'll
27:04
Speaker 1: be like a little little something something on top, right,
27:07
Speaker 1: so we'll do the five plus one.
27:08
Speaker 3: Good idea.
27:09
Speaker 1: I'm just ruining the list for you.
27:11
Speaker 3: Yeah, it's a very I think I'm following though.
27:13
Speaker 1: Yeah, but top six anyway, So we've got the bank
27:17
Speaker 1: account and it's maximum variable interest rate right now, it's
27:20
Speaker 1: five point five to five percent. Sounds good, kind of sexy.
27:24
Speaker 1: Their standard variable rate is zero point five to five percent.
27:28
Speaker 1: They do need due to deposit a minimum of two
27:31
Speaker 1: thousand dollars each and every single month, which for some
27:35
Speaker 1: people is feasible. That's why it's on the list, my friend.
27:38
Speaker 1: And does it have the government guarantee? You ask, yes,
27:40
Speaker 1: it does.
27:41
Speaker 3: Great standard variable rate means is that like the average.
27:45
Speaker 1: It's the default.
27:46
Speaker 3: It's the default. Okay, okay, it's the default.
27:49
Speaker 1: So you know how we're talking before about how they
27:51
Speaker 1: have shiny intro offers and they go, oh, here's this,
27:54
Speaker 1: you know, maximum variable rate, like this is the most
27:57
Speaker 1: you'll get from us. Sure they have complete control of
27:59
Speaker 1: being like, we don't do that anymore because obviously you
28:02
Speaker 1: can't predict what the market's going to do, and they
28:04
Speaker 1: need the flexibility to turn that off. So it will
28:07
Speaker 1: default back down to point five to five percent if
28:10
Speaker 1: everything hit the fan.
28:11
Speaker 3: Ah, I see, thank you, so good.
28:13
Speaker 1: Good. Number two, we've got Macquarie. So McQuary savings account
28:17
Speaker 1: comes in at five point five zero percent beck, but
28:22
Speaker 1: their standard variable rate is four point seventy five percent. Whoa,
28:26
Speaker 1: so still a little bit higher. So that kind of
28:28
Speaker 1: looks a bit sexy. It's great for an intro period
28:31
Speaker 1: of four months.
28:32
Speaker 3: Ah, gotcha? I see.
28:35
Speaker 1: Is there any monthly maximum rate conditions? No, there's not,
28:38
Speaker 1: So you could just use this as you go. I
28:41
Speaker 1: would just be wary of what happens when that four
28:43
Speaker 1: month intro period wears off. Then I feel like it's
28:48
Speaker 1: like one of Australia's favorite accounts just because of the
28:50
Speaker 1: barefoot investor, like he created this cult following with Ing.
28:55
Speaker 1: So that is the I INNG savings maximizer. Okay, right now,
28:58
Speaker 1: maximum variable in test rate a five point five percent
29:03
Speaker 1: drops back down to a standard variable interest rate of
29:05
Speaker 1: point five to five percent. It's ongoing. You do need
29:08
Speaker 1: to deposit monthly at least one thousand dollars and make
29:12
Speaker 1: five transactions.
29:14
Speaker 3: Oh so, like they're encouraging you to spend.
29:17
Speaker 1: They're encouraging you to use that as an account that transacts,
29:20
Speaker 1: So it's a savings maximizer. Usually you can't just have
29:24
Speaker 1: a savings maximizer account with Ing. You also have to
29:27
Speaker 1: have their daily account, in which case you would need
29:29
Speaker 1: to make those five monthly transactions.
29:31
Speaker 3: Gotcha? Okay? And when you say transactions, like, would it
29:34
Speaker 3: count if I just transferred money from one savings account
29:38
Speaker 3: to a transaction account or do.
29:39
Speaker 1: Every bank is going to be different, So what that
29:42
Speaker 1: looks like to Ing might look very different to NABB
29:44
Speaker 1: or you know, A and Z, which is fine. Again,
29:47
Speaker 1: you need to read your terms and conditions. But usually
29:50
Speaker 1: it's a deposit into or out of that account. It
29:52
Speaker 1: could be you know, you paying for your my key.
29:54
Speaker 1: It could be you transferring some money in from you know,
29:57
Speaker 1: a dinner that your friend O. Do you cash from five?
30:00
Speaker 1: Standard usually transaction?
30:03
Speaker 3: Sure?
30:03
Speaker 1: Okay, so four we have the first option banks savings account.
30:07
Speaker 1: So that comes in at four point seventy five percent
30:10
Speaker 1: with a standard variable rate of two percent. Pretty good,
30:14
Speaker 1: it's on going too, oh, very good. So they're not
30:16
Speaker 1: going to go, oh there's an intro period. No intro period,
30:20
Speaker 1: it's ongoing. But you do get this minimum deposit amount
30:24
Speaker 1: per month. Gotcha, it's only one hundred bucks. That seems
30:28
Speaker 1: that's a bit more reasonable.
30:30
Speaker 3: I can deal with that a bit more.
30:31
Speaker 1: Relatable, you know. Yeah, but you can't make any withdrawals.
30:36
Speaker 3: Oh oh oh okay, they.
30:40
Speaker 1: Just really want you to save.
30:42
Speaker 3: That's actually really cute. I kind of like it.
30:45
Speaker 1: I kind of like the trap. And that's why when
30:48
Speaker 1: we're talking about this stuff, it's like not one size
30:50
Speaker 1: fits all, Like you go, V, what should we be
30:53
Speaker 1: looking for? And I go, well, what's your criteria? There's
30:55
Speaker 1: so much stuff that you could be looking for. At
30:58
Speaker 1: the end of the day, you could be like, you know,
31:00
Speaker 1: talking about the type of account you want to have,
31:01
Speaker 1: or your interest rate or your minimum or maximum deposit.
31:04
Speaker 1: You could be talking about like fees or even goal
31:06
Speaker 1: setting your capability and your time frame, like if you
31:10
Speaker 1: are the type of person that's like Becka me a
31:12
Speaker 1: bit impulsive, aren't we, bab.
31:14
Speaker 3: Yeah, that's nothing.
31:15
Speaker 1: So I would say, like, we're good at it together.
31:16
Speaker 1: It's why we need to produce it in the room
31:18
Speaker 1: with us at all times, all time to stop us
31:20
Speaker 1: from going rogue. So that would work for me, beck
31:23
Speaker 1: But I'm also feeling like a little while ago on
31:26
Speaker 1: the show, you told us about how you have a
31:28
Speaker 1: money tin because you can't get the money out because
31:30
Speaker 1: it's in a tin, and I just feel like that
31:31
Speaker 1: might work for you too.
31:32
Speaker 3: Yeah. Well that tim actually unfortunately wasn't strong enough for
31:35
Speaker 3: these big, strong hands.
31:36
Speaker 1: Did you get the can opener out?
31:37
Speaker 3: I did.
31:38
Speaker 1: I got a lot of good it's a bit naughty.
31:40
Speaker 3: Anything I could I got out.
31:41
Speaker 1: But I think this next time you do that, can
31:42
Speaker 1: you please film it? Make great contact?
31:44
Speaker 3: I can do. This is why this would be perfect
31:46
Speaker 3: for me and you.
31:48
Speaker 1: Yeah. Yeah, just based on that criteria completely. So beck
31:51
Speaker 1: I included the first Option Bank savings account in my
31:54
Speaker 1: number four slot because they had that four point seventy
31:58
Speaker 1: five percent, But then they also had that standard variable
32:00
Speaker 1: rate of two percent, which felt a little bit safer
32:02
Speaker 1: than the one I'm going to put in number five.
32:05
Speaker 1: Even though their interest rate or their maximum variable interest
32:08
Speaker 1: rate was higher. It just felt like that made more
32:11
Speaker 1: sense to me, and it's my list, so I do
32:13
Speaker 1: what I want, You do what you want. So coming
32:15
Speaker 1: in at number five is the Bank of Queensland Future
32:18
Speaker 1: Saver account. This future Saver account, it does have a
32:22
Speaker 1: little bit of criteria on it though, so it's for
32:25
Speaker 1: fourteen to thirty five year olds, HM, quite specific, which
32:29
Speaker 1: is why it kind of ranked a little bit lower
32:31
Speaker 1: than the other one, even though they have a higher
32:33
Speaker 1: interest rate. Their interest rate is sitting at five point
32:35
Speaker 1: four percent, which is very nice, but their standard variable
32:39
Speaker 1: rate was zero point zero five percent, so that's obviously
32:42
Speaker 1: lower than the one before before we were talking about it.
32:45
Speaker 1: Two percent, yes, standard rate. So do you see why
32:48
Speaker 1: I might have like dropped it down a little bit.
32:50
Speaker 3: Yeah, that makes sense.
32:51
Speaker 1: Because I'm a bit rude. I didn't just go, oh,
32:53
Speaker 1: the highest interest rate is the best, which is exactly
32:55
Speaker 1: what we want you to do as well, because the
32:57
Speaker 1: highest interest rate does not equal the best. Because I
33:00
Speaker 1: obviously could rant about this for six million years, and
33:03
Speaker 1: I honestly have, like I've done it for five years
33:05
Speaker 1: and we haven't slowed down there. But when it comes
33:09
Speaker 1: to the investment world, often people will say, be what's
33:12
Speaker 1: the best type of investment? And I can't answer that either,
33:15
Speaker 1: not because I don't want to. But if you say
33:18
Speaker 1: the more specifically, what's the highest yielding type of investment
33:22
Speaker 1: in Australia? So what returns the most cash older, Well,
33:26
Speaker 1: it's shares, right, Whereas a lot of people will want
33:29
Speaker 1: to hear me say property or like their asset that
33:32
Speaker 1: they want to invest in. Pragmatically speaking, shares have outperformed
33:37
Speaker 1: the other three main asset types in Australia. So it's shares,
33:41
Speaker 1: then it's property, then it's fixed interest, and then it's
33:43
Speaker 1: cash here in Australia. Right, there's a hierarchy. It's just
33:46
Speaker 1: how it works. Doesn't mean it's the right fit for you, Beck,
33:49
Speaker 1: absolutely not. Just because it's the highest return doesn't mean
33:52
Speaker 1: shares are the right thing for you to invest in. Yeah, absolutely,
33:54
Speaker 1: does that make sense? And they came with bank accounts.
33:57
Speaker 1: Highest interest rate does not mean best say with subernuation accounts,
34:01
Speaker 1: highest rate of return does not mean best. You need
34:04
Speaker 1: to look at the fees and the bells and whistles
34:07
Speaker 1: and everything else that you get into it. Because as
34:09
Speaker 1: I said in my first book, and I got a
34:11
Speaker 1: lot of slack for this, I said, when you pay peanuts,
34:14
Speaker 1: you get monkeys. Some people didn't like that.
34:18
Speaker 3: Well, though, that's fair enough. You don't want to be
34:21
Speaker 3: this is what I say. It's very similar. You don't
34:23
Speaker 3: want to be trojan horsed.
34:25
Speaker 1: No, you don't, and that's what we're trying to save
34:27
Speaker 1: you from. Yes, So the Bank of Queensland, to carry
34:30
Speaker 1: on about them, they're intro period, there is none sexy good.
34:34
Speaker 1: But they do require a minimum monthly deposit of one
34:36
Speaker 1: thousand dollars and five eligible transactions eligible exactly. The word
34:42
Speaker 1: eligible means you need to read the terms and conditions.
34:45
Speaker 1: And then I wanted to like, do the little cherry
34:47
Speaker 1: on top, yes please, which is again a high interest rate.
34:52
Speaker 1: Obviously when I was comparing it, I put the first
34:54
Speaker 1: option bank higher than the Bank of Queensland. But then
34:58
Speaker 1: this is a Westpack account and it g it's like
35:00
Speaker 1: to be the cherry on top because it's a lower
35:03
Speaker 1: interest rate than the Bank of Queensland, but a higher
35:06
Speaker 1: standard variable rate.
35:07
Speaker 3: Ah.
35:08
Speaker 1: So the Westpac Life account, which unfortunately is only for
35:13
Speaker 1: our listeners from the age of eighteen to twenty nine,
35:16
Speaker 1: has a maximum variable rate of five point two percent,
35:20
Speaker 1: but the standard variable interest rate is two percent. Very good,
35:24
Speaker 1: so it's a bit higher. No intro period, which is
35:27
Speaker 1: really nice. No minimum deposit amount, but you do have
35:31
Speaker 1: to have five debit card purchases each and every single
35:35
Speaker 1: month to get to that maximum variable rate.
35:38
Speaker 3: Okay, so they want you to spend a little bit.
35:41
Speaker 3: They want you to treat yourself.
35:42
Speaker 1: They do. They want you to like be active with
35:45
Speaker 1: their product. Yeah, which is not rude. They're literally paying you.
35:49
Speaker 1: Absolutely nobody owes you anything that could work for me.
35:52
Speaker 3: Laugh.
35:53
Speaker 1: I really like using your debit card. I do, so
35:56
Speaker 1: it's all good. I totally get it. But Beck, how
35:59
Speaker 1: do you feel about that? What are your thoughts, values, beliefs,
36:02
Speaker 1: and behaviors about this app.
36:04
Speaker 3: This is really interesting because I am with Iron G
36:06
Speaker 3: and I've been curious that you are. Thank you well,
36:10
Speaker 3: I was really curious about the interest rate and stuff,
36:12
Speaker 3: and like wondered why I it never kind of applied
36:14
Speaker 3: to me. But it's because I'm not just depositing.
36:17
Speaker 1: On read the terms and conditions. Did not read the.
36:19
Speaker 3: Terms and conditions, But this is really interesting. It's got
36:22
Speaker 3: me thinking, I'm assuming with Bank of Queensland you must
36:24
Speaker 3: be in Queenland.
36:25
Speaker 1: No, it's just the Bank of Queensland A very good
36:28
Speaker 1: to know, okay, like the A and Z Bank or
36:31
Speaker 1: the National Australia Bank, like they they're just names.
36:34
Speaker 3: Yeah.
36:34
Speaker 2: I love this.
36:35
Speaker 1: It's where it started, all right.
36:37
Speaker 3: I think I'm going to have to read up on
36:39
Speaker 3: these and figure out what is best for week.
36:43
Speaker 1: All right, well, let's hop off. I feel like you
36:45
Speaker 1: and I are probably going to dive deep into doing
36:48
Speaker 1: a little bit more research on what bank account might
36:50
Speaker 1: work for you because I really want to play with
36:51
Speaker 1: it too. Lucky us, But thank you for tuning in.
36:54
Speaker 1: I hope you guys have the best week and we'll
36:55
Speaker 1: see you bright and early on Friday.
36:57
Speaker 3: Bye guys.
37:04
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37:07
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37:11
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