Now that you’re set up to earn high interest on as many dollars as you can spare, and move money in and out of your savings as often as you like, there are a couple of things to get used to. Firstly there are the services you can use to make transfers, like NAB Internet Banking, NAB Telephone Banking, NAB SMS Banking or NAB Internet Banking on your mobile.
The other thing is the way your savings account works with what we call its “linked transaction account” or “linked everyday account”. This is the only account that you can transfer money into when you take it out of your savings. (It’s probably something like NAB Classic Banking)
Your linked account is probably the account you use to pay bills or go shopping, so you need a good idea of how it relates to your savings. That way you can maximise the interest you earn and still have access to your money when you need it.
Access your money whenever you want it
Transfers between your two NAB accounts are immediate – even late at night or on weekends. You can get your hands on your savings as often as you like without any fees or changes to your interest rate.
So if you see a jacket that you can’t resist but which costs a little more than you were planning to spend, a quick transfer on your mobile phone can boost your EFTPOS funds while you’re still in the changing room.
You’re better off trying to have as much money as you can earning interest in your savings account, and waiting for when you might need it. If you hold it in your transaction account instead, you’re missing out on interest.
Earn interest on your money whenever you can
If you don’t know what the weekend has in store you might want a bit more spending cash ready to go in your everyday bank account. But if you’re planning a couple of days on the couch, shift that extra money into your savings account so it’s earning interest while you’re watching DVDs.
Even if you transfer it out again on Monday morning you’ve still boosted the interest that you earn.
What to do with your salary: earn as much interest as you can or have everything ready to spend?
Payments can come into your NAB iSaver from anywhere, so on pay day you have a choice:
- get paid into your everyday account, so all your money’s available to spend, and choose how much money to save; or
- have your pay go straight into your savings account and start earning interest, letting you to decide how much to transfer into your everyday account to cover your day-to-day expenses. (Remember that your everyday account is where your bill payments, direct debits, ATM withdrawals and EFTPOS payments come from.)
This decision probably comes down to how well-planned your budget is. If you know the date and amount of your next phone bill and gym payment, you can probably organise your finances well enough to get paid into your savings account and automatically transfer out the money you’ll need before your next pay day. That way you’ll have as much money as possible earning interest.
But if you’re not as disciplined with your budget, you probably like having some financial room to move. Do you suddenly remember to pay rent the day before it’s due, or sometimes have an unplanned dinner out at short notice? You might be better off getting you salary sent to your transaction account and only saving the dollars that you’re sure you won’t need, so you don’t risk spending what you planned to save.
Either way, there are no charges for shuffling money back and forth so you don’t need to worry if you ‘re not exactly sure how much money to hold in your savings, or what you’re going to need for your day to day bills and expenses.
Now you know how to move your money around, learn more about how to get the most out of your online savings.
NAB iSaver transfer channels: