A new type of online savings product to RaboDirect, which helps people meet their savings goals faster by keeping cash at arms’ length while earning competitive rates, has been announced by RaboDirect.
The new type of account to RaboDirect, called Notice Saver, was developed in response to the insight that keeping some cash at arm’s length would ease the pain the for business owners when the big bills needed paying and would also help customers who wanted the security of a term deposit but with greater flexibility.
Greg McAweeney, Group Executive of RaboDirect Australia and New Zealand, explained:
“Notice Saver is not quite a High Interest Savings Account, nor a Term Deposit. It gives the high interest, fee-free benefits customers expect from RaboDirect – with a differentiating feature designed to improve budgeting, and that is the requirement to serve a notice period before withdrawing funds 31, 60 or 90 days, depending on the type of Notice Saver account chosen” Mr McAweeney said.
Unlike a Term Deposit, this isn’t an investment period but rather the amount of notice that must be given before funds can be withdrawn. Also, unlike a Term Deposit, it has a variable interest rate, tiered depending on the balance.
“Notice Saver offers advisers a new option for their customers to diversify their portfolio further, With the flexibility of accessing their money with a specific notice period, but because the funds are tied up during the notice period, it offers very competitive rates of interest. Best of all funds can be topped up at any time, so you can keep adding to your buffer and essentially reach your savings goals sooner,” Mr McAweeney said.
For advisers looking to recommend the best solution to clients in terms of their core cash holding, the Notice Saver accounts offer a unique solution.
“With official interest rates having fallen over previous months, clients will be turning to their advisers for guidance on products to use for their cash holdings, particularly the more risk-averse clients,” Mr McAweeney said.
“With the current search for yield, it is important to also consider the other factors that will impact your clients’ overall cash balances – such as fees. Notice Saver, like all our products, carries no fees whatsoever.
Mr McAweeney finished by saying: “empowering customers is part of RaboDirect’s DNA.”
“We have been telling Australians to take a hard look at their banks and at whether the products they have on offer are really meeting their needs. This is also relevant to financial advisers and intermediaries who need to advise on which solutions best suit a client’s needs. If a product benefits the bank’s bottom line more than it does your client’s, take action. It’s their hard-earned cash after all,” he said.