Hi ozbargainers,
I plan to put some of my savings in a small mutal bank called "Move bank", they have a interest rate of 1.6%, the deposit's are guaranteed by the government up to $250,000. I just want a savings account without a transaction account. What are your thoughts?
Thanks.
Move isn't a neo bank, they've been around for years under the name Railways Credit Union. Changed name when they got their banking licence a few years ago. They have a branch presence (one, IIRC) and a head office in Brisbane.
How likely are banks gonna go bust? Asking seriously.
I wonder if international online banks like transfer wise or even paypal are better if shit hits the fan.
Can't imagine having a million in bank, but bank guarantees are only up to $250k, so u lose 750k!
paypal is not a bank
Of course, any saving is always a good idea !
The deposits are guaranteed by the government, so there's no risk you'll lose all your money.
The only question is service and convenience.
Personally, I've always banked with credit unions and mutual banks. The ones I've used have had good service.
Deposit garuntee from the government are useless and don’t tigger, if a bank gets bailed in using a depositors savings.
Also, limit of $20 billion per ADI. As usual, the devil is in the details.
I'd personally put the money in an ETF, rather than get 1.6%.
they have a interest rate of 1.6%,
You may get a 1.6% APY (2019/20) or $4000 on a $250k deposit, but the value of your money has decreased by -0.0003% during that period. This is before the the taxman take their cut.
Keeping your FIAT in a bank is actually costing you money.
As banks go, based on the latest public disclosure available (Mar 2020), they have quite a robust capital adequacy ratio.
That said, if you are risk-averse, just spread your savings across a few banks. Banks with comparable rates - e.g., ING 1.65%, Ubank 1.6%, and there are no limitations on monthly withdrawals with them.
I've got my Home Loan with them and I've had no issues or concerns. Their website and app aren't particuarly fancy, but have all the functionality I need.
It's better than putting it under your mattress. I'd go for a bigger name bank though, these neo banks are hard to contact if you have any problems.
Check Canstar for the best interest rates.