Learn How to Quit Spending More Than You Earn
Are you finding yourself with more month left at the end of the money every month so that you end up spending more than you earn? Then you need to know that you actually are not alone. The practice of spending more than you earn is a real problem in Australia and the same seems [...]
Read MoreWhat Does Budgeting and Baking Have in Common?
There are many people who compare budgeting to a trip to the dentist to have a tooth uprooted due to serious misunderstanding of the whole concept of budgeting. Whereas many people make budgeting feel like such a big burden, it needs to be understood well in order for people to benefit from the financial freedom [...]
Read MoreA Simple Procedure for Setting up a Strong family Budget
It is clear that every family that seeks to be financially fit has to learn and live on a kind of a budget. This is an open secret with the main challenge being that most people just do not known where to begin the whole process of creating budgets for their home. Since every family [...]
Read More7 Important Tips for a Better Budget
When it comes to making a budget you first of all need to know how to make one in the first place. Today we live at a time where the internet has free budget spreadsheets that you can use to create one. As soon as you have a budget in place then you will benefit [...]
Read MoreLinking Savings and Checking Accounts
Linking savings accounts to a checking account is something most Australians with a savings account do. The question you may be wondering is whether or not it is a good idea. The answer to that question will depend on how well you manage your money.
Why to Link Accounts
Most Australians link their accounts because it makes it easy to transfer funds and do their banking. This can be a good thing or a bad thing depending on whether or not the temptation to overspend is too strong because of a balance sitting in the savings account.
Banks offer you the ability to link your accounts for your ease. You can generally access all of your accounts online and through your ATM card. This means you can easily transfer funds between linked accounts. Convenience is the primary reason people link their savings accounts and checking accounts.
Another reason people link their checking account and their savings account is so they do not have their checking account become overdrawn. Most banks will set up your accounts so money can automatically be withdrawn from your savings account if you deplete your checking account. Typically you can control how this is done
Consumers still have the option to set up overdraft protection for this purpose without a direct link between checking and savings if they wish.
Why Not to Link Accounts
Some consumers choose not to link their accounts for a couple of reasons. The main reason people choose not to link their accounts is because they find it too easy to start pulling money out of their savings accounts.
Some consumers find it too easy to spend more money than they intended, because their accounts are all linked. If you do not link your accounts it becomes a little more difficult to spend more money than you have in any single account which may help you stay a little more true to your overall budget.
Another reason people choose not to link their accounts is safety. People are concerned that if someone was to get access to their ATM card they can spend money and withdraw funds from all of their linked accounts rather than just one. This is a valid concern though most banks have fraud protection that can help alleviate this need.
Know Yourself
When it comes to your finances you need to be realistic and not idealistic. Many of us like to think that we can easily resist temptation and have great money management skills. The reality is most of us are unable to resist temptation and have questionable money management skills. This does not make us bad people. It simply means we need to put safeguards in place to protect us from our own spending habits.
If you are the type that can easily overspend you may wish to consider whether or not it makes sense to link your accounts. If you are the type of person that has great control of your spending then you may be more than comfortable linking your accounts.
| Bank | Overview | Intro Rate | Apply |
|---|---|---|---|
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Enjoy the convenience of ANZ Online Saver. An online savings account that offers easy access to your savings, no minimum balance and no monthly account service fee. | 6% |  More Info |
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No one likes fees, so we’ve taken them out That’s right - no fees…whatsoever with the Virgin Saver. And you can freely transfer money between Virgin Saver and your Nominated Linked account, as often as you like. For free. | 5.85% | More Info |
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The award-winning UBank USaver is an innovative, great value account that allows you to set your savings goal and monitor your progress towards that goal. | 6.01% | More Info |
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The Citibank Online Saver combines a number of benefits into one very easy to use savings account, and with a great introductory interest rate for 6 months. | 5.80% | More Info |
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The award-winning St. George Direct Saver is one of the most flexible and easy to use direct savings accounts available. As well as a superb long term interest rate. | 5.50% | More Info |
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The NAB iSaver offers a great interest rate, bonus interest for four months and the flexibility to manage your savings account online. With no minimum balance. | 5.50*% | More Info |