Nearly three quarters of Aussie couples clash over money

Nearly three quarters of Aussie couples clash over money

Valentine’s Day is just around the corner, but when it comes to your finances, mixing love and money is still proving tricky for many Aussies.

The latest research from smartbank, 86 400, shows that nearly three quarters (74 per cent) of 1000 surveyed Australians admitted to having disagreements with their partner about money.

Money is particularly contentious at the beginning of a relationship (or for younger Australians) according to the survey. 82 per cent of 18-24-year-olds argued with their partners over money. But only 55 per cent of 35-44-year-olds clashed when it comes to their finances.

In fact, 86 400 research found that more than a quarter (27 per cent) of all respondents admitted to thinking their partner is not good with money.

And speaking of the day of love, for those expecting a Valentine’s Day gift, keep an eye on your joint account. 65 per cent of male respondents admitted to using money from a shared account to buy presents for their partner.

More 86 400 survey results on how Aussie couples share money: 

  • More than a third (36 per cent) of respondents take 1-3 years to combine their finances with a partner. A quarter (28 per cent) combine their finances within one year of being in a relationship, and only 17 per cent wait between 3 and 5 years.
  • Less than half (45 per cent) of respondents choose to share their finances due to getting married. However, this was the biggest reported trigger for combining finances.
  • 2 out of 3 respondents (66 per cent) use their shared accounts to pay bills, such as rent, utilities and groceries.

The joys of joint accounts

Combining finances into one account is not a concept just reserved for couples. Many households – whether families or flatmates – find it an easier financial solution to pay bills or save for life events, like holidays or renovations.

Most bank and savings account providers allow customers to open joint accounts. However, there are some providers offering innovation in the world of shared finances.

In December 2020, 86 400 launched Shared accounts, featuring a 30-second sign up process for applicants. Signing up for a standard joint account typically takes longer than if you went it alone, as the provider needs to assess the personal information of more than one applicant. 30-second sign up processes shorten this time significantly.

Further, Revolut’s Vault account allows more than one Revolut customer to join together their savings goals into a Group Vault. Friends and family can link their bank accounts to the same group. The Group Vault allows you to round up any spare change into it, deposit dedicated amounts each month or even invest a one-off amount in different currencies, including Bitcoin. Withdrawal permission also needs to be granted for members to dip into any funds, so it limits the amount of potential relationship stress involved.

When it comes to mixing money with love – whether romantic, familial or platonic – it’s worth keeping in mind that it can add additional stresses to any relationship. Ensure you trust the individual or group you’re considering combining finances with and set clear rules and expectations before you apply.

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Learn more about savings accounts

What is an ANZ locked savings account?

An ANZ locked savings account locks your money and prevents you from spending. You may use a standard savings account as the account where your salary is deposited. You can then withdraw funds when needed, but aren’t able to make purchases with it. However, this account may not grow much as the continual withdrawing of funds will limit the interest you can earn.

With a locked savings account in ANZ, you know your savings will grow because you can’t access the money. You can also qualify for a bonus when you deposit at least $10 per month and don’t make any withdrawals. To help you with this further you can set up an automatic transfer from your regular ANZ savings or transaction account so you don’t forget to make a monthly deposit.

Your ANZ locked savings account offers you a base interest rate of 0.1 per cent per annum plus an additional bonus interest of 0.49 per cent per year. The interest is calculated daily and credited to your account on the last working day of the month.

Can you have a joint savings account?

Yes. Joint savings accounts can be useful for two or more people wanting to combine their savings to meet shared financial goals, including spouses, flatmates and business partners.

Some joint savings accounts require all parties to sign before they can access the money. While less convenient, this extra security can help encourage all parties to meet their shared financial goals.

Other joint savings accounts allow any of the account holders to access the money. These accounts can be convenient for financially responsible couples that trust one another implicitly. 

What are the two types of NAB locked savings accounts?

With a locked savings account in NAB, you can earn bonus interest and learn financial discipline. NAB offers two types of locked savings accounts, each with their own terms and conditions.

The NAB Reward Saver account pays a variable base interest rate of 0.05 per cent per annum and a bonus interest of 0.55 per cent. You’re eligible for the bonus if you make a minimum of one deposit on or before the second last banking day and have no withdrawals in the month.

Meanwhile, the NAB iSaver account provides 0.05 per cent as the standard base interest rate and a fixed bonus margin of 0.55 per cent during the first four months from the date of opening the account. You can park your cash in the account and enjoy unlimited monthly transfers between linked daily bank accounts without impacting the interest rate.

How to make money with a savings account?

Savings accounts make you money by earning interest on your savings. The more money you deposit, the longer you leave it in the account, and the higher the account’s interest rate, the more interest you’ll be paid by the bank or financial institution, and the more your wealth will grow.

To make sure your savings account makes money and doesn’t lose money, it’s important to maintain a large enough minimum balance that the annual interest earned exceeds any annual fees charged on the account.

Can you have multiple ING savings accounts?

Yes, you can open up to nine accounts with ING at any particular time. If you’re saving money for various goals, such as buying a car or taking a holiday, you can name each of your multiple ING savings accounts differently.

To get a Savings Maximiser account, you’ll need to deposit more than $1000 every month and make at least five additional purchases. If you also want to grow your savings, from 1st March 2021, you can earn up to 1.35 per cent per annum variable interest on one account with a balance of up to $100,000 when you also maintain an Orange Everyday account.

With ING, multiple savings accounts can help keep track of all your savings goals. All the accounts offer flexible withdrawals where you can withdraw as low or as high as you want without impacting your earning interest rate. However, you can only earn the bonus interest on one account. To apply for a Savings Maximiser account, you can visit ingdirect.com.au.

What is a savings account?

A savings account is a type of bank account in which you earn interest on the money you deposit. This makes it one of the easiest and safest investment tools.

Can you direct deposit to a savings account?

Yes. You can make one off payments or set up regular direct deposits into a savings account. This can be organised easily through online banking or by making deposits in a branch. Talk to your lender to find out the easiest way for you to set up direct deposits.

Can you set up a savings account online?

Yes. Several large and small banks offer online applications for savings accounts, and there are also online-only financial institutions to consider.

Online-only savings accounts are often less expensive than other savings accounts, though they may not offer the same flexibility, features, or face-to-face service as more traditional savings accounts.

Who has the highest interest rates for savings accounts?

As banks frequently change their rates, the most accurate way to know who currently has the highest interest rate is to use a savings account comparison tool.

How does interest work on savings accounts?

The type of interest savings accounts accrues is called compound interest. Compound interest is interest paid on the initial deposit amount, as well as the accumulated interest on money you have. This is different from simple interest where interest is paid at the end of a specified term. Compound interest allows you to earn interest on interest at a higher frequency. 

Example: John deposits $10,000 into a savings account with an interest rate of 5 per cent that he leaves untouched for 10 years. At the end of the first year he will have $10,512 in savings. After ten years, he will have saved $16,470.

What is the interest rate on savings accounts?

As banks frequently change their rates, the most accurate way to look at interest rates on savings accounts is to use a savings accounts comparison tool. When you look at the savings rate check what the maximum and minimum rates are. Often banks will offer you a promotional rate for the first few months which is competitive, but then revert back to a base rate which can sometimes be less than inflation. Ongoing bonus rates are often a safer bet as they will keep rewarding you with the maximum rate, provided you meet their criteria

Can I overdraft my savings account?

A lot of savings accounts won’t let you overdraw. Some will allow this feature but you’ll need to apply first. It’s best to read the fine print and check with your lender whether this is a feature they offer. It can be a helpful addition, but as your lender can charge you a fee as well as interest for going into negative numbers, it’s best to avoid overdrafting when possible.

What is a good interest rate for a savings account?

A good rule of thumb to keep in mind with savings accounts is to look for a rate that is higher than the CPI inflation rate. This number is constantly changing, so check the Reserve Bank of Australia’s page. If you aren’t earning interest above this then the value of your money will go backwards over time.

How much money should I have in my savings account?

A good rule of thumb when working out a minimum balance for your savings account is to make sure that you’ll earn more in annual interest on your savings than what you’ll be charged in annual fees.

If you’re saving with a specific goal in mind, prepare a budget so the interest you earn on your deposits will help you efficiently reach this goal. Online financial calculators may be helpful here.