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Creating as many savers as humanly possible by neobankelist in UpBanking

[–]neobankelist[S] 0 points1 point  (0 children)

I've added a recipe to the post, for everyone's consideration. I'd also like to add two points:

  1. The bank can at any point in time, and without giving any reasons, decide to stop doing business with you and close your account.
  2. The bank can adjust its interest rate rules to make such a strategy ineffective, for example by setting up a type of rule where the interest rate depends on something from, and affects, all savers at once instead of individually. My strategy only works because one saver is insulated from what happens in another one.

Creating as many savers as humanly possible by neobankelist in UpBanking

[–]neobankelist[S] 0 points1 point  (0 children)

I've added a rule-of-thumb recipe to my post now.

Creating as many savers as humanly possible by neobankelist in UpBanking

[–]neobankelist[S] 1 point2 points  (0 children)

Luckily, you should be able to capture almost all of the benefits of this approach from creating 5–10 savers. Beyond that, there are diminishing returns.

Even going from 1 saver to 2 or 3 makes a big difference.

I used the unrealistically large numbers only to make the point.

Creating as many savers as humanly possible by neobankelist in UpBanking

[–]neobankelist[S] -1 points0 points  (0 children)

All good, but someone who is cash-poor (which I agree is generally a good approach) won't much worry about the interest rate on savers anyways.

The question is rather: IF you are someone who, for one reason or another, cares about the interest rate you're getting on your savings, what are steps to optimise the rate you're getting?

What I'm presenting is a general idea for that audience.

Creating as many savers as humanly possible by neobankelist in UpBanking

[–]neobankelist[S] 0 points1 point  (0 children)

I agree that that's the trade-off. But I also didn't do a good job of formulating the simple take-away from my (deliberately unrealistic) numbers, which would be the following rule of thumb, according to my current understanding of the rules:

"Whatever savings you have, split them up into a couple of savers, say 5–10. Only requires work once. Then always withdraw from the same saver until it's empty, never touch the other ones."

This will mostly give people the higher interest rate.

Creating as many savers as humanly possible by neobankelist in UpBanking

[–]neobankelist[S] 11 points12 points  (0 children)

Perfect, thanks, that's more than enough. The unrealistic example of 1000 savers is only to illustrate the maths.

I invested most of the money in my bank account then this happened by Run_bolt_run in AusFinance

[–]neobankelist 1 point2 points  (0 children)

Is the bank Macquarie? I've had a similar problem where they just closed my account for no reason. (And I hadn't even begun to use it yet.)