Do you notice your fortnightly car repayments, iPhone bill or charity contributions when they are direct debited from your account?
Based on the same concept as direct debiting, setting up an automatic savings plan can help you to save more and help you reach your financial goals sooner.
The way an automatic savings plan works is by setting up an automatic transfer from your everyday bank account into your online savings account. Work out how much you can spare to tuck away each pay, for example set up $200 to be transferred automatically from your pay each month to your online savings account and in one year you can save $2,400 (not including interest).
By transferring your money into your online savings account using an automatic savings plan, you can earn a higher interest rate than your everyday transaction account and save more.
How to set up an automatic savings account plan
- Create an internet banking account
- Select an account to transfer your money from and a high interest savings account to transfer it too.
- Enter the automatic amount you want transferred and give it a title. The title could be what your saving for such as, holiday, home loan, car or just savings.
- Set up the periodic transfer by selecting the frequency and transfer dates.