Online banking features that’ll help you save money in 2020
When it comes to saving and spending habits, 2020 has been a rollercoaster year of change for many.
Australians have had to rethink budgets to manage income loss caused by the pandemic, turn to online shopping during lockdowns and even abandon cash to help stop the spread of COVID-19. In light of this, you might be looking for new ways to make your banking more efficient and help you save for rainy days to come.
As more Aussies head online for their banking needs, we’ve laid out some of the innovative banking features to help you make more out of your cash in 2020.
You might not want to look over the bill from last night’s shenanigans, but it is the best thing to do if you’re trying to rein in wild spending habits and stick to a budget.
Spending trackers within mobile banking apps can help you do this on a few levels. They can categorise your spending, so you know where your money is going across things like using public transport, eating out, visiting bars and buying groceries. Then you can cut down in certain areas if need be.
As the app monitors this, it can also generate your average spending habits, and give you a nudge if you're going beyond your usual budget.
Multiple savings buckets
Sometimes you need to focus on a specific savings goal and multiple accounts or savings ‘buckets’ can help you do that.
The buckets are dedicated pools where you can store savings allocated to different goals, like a new car purchase or home renovation. They can be managed within a single account, but help you stick to numerous financial targets simultaneously.
Providers might also offer a slightly less streamlined route, allowing you to open multiple savings accounts to achieve a similar result. Keep an eye out for any deposit or spending criteria for each separate account, as not meeting this could impact your bonus interest-earning potential.
Automated saving deposits and reminders
A good rule of thumb is to pay your savings account first when your salary comes in. This way, you learn to budget on the leftovers and keep those locked away funds growing.
If your salary comes in on a regular date, set a realistic automated deposit from your everyday spending account into your savings that day.
For freelancers or contractors whose income fluctuates, a savings goal reminder might be more practical. Some provider apps can monitor your savings habits, like when and how much you normally save within a month. Then they send your little reminders to keep at it, or what you need to deposit to access bonus interest criteria for the period.
On the more extreme end of the automation scale, a wise little bot can use this info to calculate how much you can safely save and transfer it for you automatically.
This is kind of like popping the day’s leftover coins into a piggy bank, except virtually. Generally, you set a round-up feature to automatically take any transaction you make to the nearest $1 or $5 and send the remainder to your savings.
For example, if you spent $3.50 on a coffee using your translation account, 50 cents would be instantly whisked off to your linked savings account.
It’s a great way to save without fretting over monthly lump sums. However, if you do tend to make a lot of small purchases, just check you’re not squirreling away money which you need to pay bills.
Direct debit bill payments and reminders
Paying bills late or missing them entirely can leave you lumped with late fees and even affect your credit score. So, if you need a gentle reminder to stay on top of bills, consider setting up automatic payments or bill reminders.
Setting up direct debit bill payments works similarly to other automated features. Your bank app can ping you reminders to pay bills manually – like for gas or electricity which are usually charged at regular intervals – or you can set up an automated direct debit for other consistent costs, such as rent or internet payments.
One institution performing across a lot of these areas is MyState Bank. Check out some of MyState’s deposit products below and learn more about their personalised banking features, then head to Mozo's bank accounts comparison page for more banking options.
MyState Bank's flexible banking options
MyState Bank Glide Account
- No monthly account fees
- Multiple mobile payment options
This everyday transaction account is super easy to manage, with no monthly account fees and all the mobile payment options your tech-savvy heart might desire. You can keep an eye on your incoming and outgoing cash with the handy spending tracker and it can be linked to MyState’s savings accounts. This will enable the app to automatically move money to your savings when you’ve got a little extra to put away, so you have more support in your savings goals.
MyState Bank Bonus Saver Account
- 1.65% bonus interest rate
- 2020 Mozo Experts Choice Award winner
This is a super accessible savings account option. All you need to do to get the top 1.65% bonus interest rate is deposit at least $20 every month and make five debit transactions. Get stuck into the app features if you want to grow your cash stash to its fullest potential. MyState offers auto-savings features and savings trackers so you stay committed to your savings goals with minimal effort.
MyState Bank Online Term Deposit
- 1.00% interest for one-year term
- Can have interest paid into any bank account
You can get a 1.00% rate on the 12-month term with MyState Bank’s Term Deposit, alongside more flexibility than some similar deposit products. You can have your interest paid into a MyState account or with a different bank, and there’s also the option to manage everything digitally with the Online Term Deposit.
Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.
While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.