New ‘passive savings’ banking trend reveals the secret to effortless savings
Trend alert! Now you’re probably familiar with the whole concept of ‘passive income’, but have you heard of passive savings? Let’s break it down.
Passive income refers to a stream of income that requires little to no effort to earn and maintain. Lots of people will set up a passive income stream in addition to their full-time job to earn some extra cash on the side.
Passive savings (a.k.a the next big trend in banking) on the other hand, is much like passive income, in that it will help you bump up your bank balance without you having to lift a finger, only it goes straight into your savings! “But, how?” you ask?
Well, lately we’ve seen loads of banks, particularly neobanks, coming out with hot new savings-savvy bank account features like instant round-up’s and savings goal sub-accounts that are designed to help you score more bang for your buck on your bank balance, without having to do a thing.
Considering the mass state of economic uncertainty we are currently facing due to the coronavirus crisis, now could be a great time to jump on the passive savings bandwagon so you can start saving for a rainy day.
Here are some banger bank accounts sporting super-savvy savings features to get you started:
Sweep saver feature:
UBank - USpend Transaction Account
- Innovative Sweep technology to help you save
- No ongoing account fees
- Multi-award-winner in the Mozo Experts Choice Awards (2019 & 2020)
With no ongoing account fees and loads of unique features to help you save, the UBank USaver Ultra Transaction Account takes everyday banking to the next level. UBank’s game-changing innovative Sweep technology will help you stick to your savings goals by automatically rolling funds over from the USaver Ultra Transaction Account to your connected UBank USaver with Ultra Transaction Account each night based on a limit you set (between $500 and $2500).
If your Ultra Transaction Account balance exceeds the maximum amount (as set by you) then Sweep will transfer the extra funds over to the USaver to keep you saving. Genius! Oh, and if your balance gets to below $500 then the Sweep will automatically top up your account with funds from the USaver, so you’ll never have to frantically transfer money in a rush at the checkout ever again!
On top of all this, this revolutionary account took out an Exceptional Everyday Account* award in the 2020 Mozo Experts Choice Bank Account Awards as well as a Travel Debit Card** award in the 2019 Mozo Experts Choice Travel Money Awards.
Everyday round-up feature:
ING - Orange Everyday
- Multi-award-winner in Mozo Expert Choice and People’s Choice Awards
- Free ATM withdrawals in Australia & overseas (conditions apply)
- No ongoing monthly account fees
The ING Orange Everyday account hits the ground running with its super savvy everyday round-up feature, which rounds up purchases made on your card to either $1 or $5 and then deposits the amount into a connected ING Savings Maximiser, Mortgage Simplifier or Orange Advantage account.
This handy feature is a passive saver’s dream because it means that when you buy your $3.50 daily takeaway coffee, your transaction will be rounded up to the nearest dollar and $0.50 will be deposited into your savings account - It might not sound like much but, every bit counts!
To add to this, when you make 5 or more card purchases using your ING debit card and deposit at least $1,000 into your ING Orange Everyday account each month from an external bank account, you’ll get fee-free ATM access in Australia and overseas, and free international transactions. And to top it all off, this account won a 2020 Mozo Experts Choice Award for best Exceptional Everyday Account* and a 2019 award for best Travel Debit Card**.
Suncorp - Everyday Options
- Ability to make up to 9 sub-accounts
- An interest rate of 0.10% p.a. on each sub-account
- Flexible payment options, such as Apple Pay, Google Pay, PayID, Samsung Pay
Now at first glance the Suncorp Everyday Options Account might just look like your average everyday bank account but don’t be fooled, it’s anything but average! Not only does this nifty account tick all the boxes of a solid transaction account, but it turns things up with a wide range of flexible features, like the sub-account feature which gives you lets you link up to nine sub-accounts to your account.
The sub-account feature is super handy if you have lots of different savings goals, as you can assign a sub-account to each individual goal and then divide your savings up accordingly - rather than just storing all your savings in the one account and mentally keeping track of your savings goals. Organising your savings in this way can make your goals feel more tangible and easier to keep tabs on, which can hopefully make sticking to them a little easier as you’ll have your goals in mind each time you contribute to your savings.
The Suncorp Everyday Options Account only offers a 0.10% p.a. interest rate on each sub-account, however, thanks to the flexiRates option you can switch your funds over to the flexiRate Term Deposit account where you could score a 1.60% p.a. interest rate for a 6-month term.
For more value-packed bank account options just jump on over to our bank account comparison table!
*Click here for more information about the Mozo Experts Choice Awards for Bank Accounts 2020
**Click here for more information about the Mozo Experts Choice Awards for Travel Money Cards 2019
^See information about the Mozo Experts Choice Bank Account Awards
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