The online lists of bank savings accounts I’ve looked at are now mostly out of date.
The guardians for my grandmother recently got control of her CBA bank account (don’t worry this isn’t a horror story) and discovered it was all in an almost 0% interest account, so they’ve moved it to a goalsaver (4.65% at time of writing).
I have a CBA account, but moved my savings around a few years back first to Bank Australia (they had good interest for a while) then Credit Union SA (currently at 3.65%). I feel like I might end up with an account with everyone at this rate.
ING seems to offer 5.5% right now but they have a longer list of requirements attached than I expected (I’ll have to start using their cards if I join them).
Any thoughts or advice? EDIT: Also are fixed term deposits ever sane? I’ve always assumed that guessing the direction of interest rates is a gamble.
Looks like a gambling company. Smells like a gambling company. Says it uses “Gaming Labs” random number generators. Claims it’s not a bank.
No thankyou, by definition for them to be profitable I have to put in more money than I get out.
This is all a little irrelevant because Yotta isn’t in Australia, but anyway…
I totally get the ick factor when looking at Yotta, because it is definitely using the same hooks as gambling. But it’s sometimes been referred to as a “No-Lose Lottery”:
You get paid interest, but less than a traditional savings account. The trade-off is that the more you save into your account, the more “tickets” you get to win a larger amount.
The key is they’re targetting a market that isn’t choosing between Yotta and a traditional savings account, they’re trying to encourage people who would spend on straight gambling to put their money in an incentivised account.
Some more detail from the founders
It’s definitely not as good as a proper savings account, but if it’s a way of redirecting money away from gambling and into savings then I figure it’s a net win for society.
So it’s less a pyramid, more a trapezoid?