@brett Looking back through this topic I see that you have actively advocated for Stash accounts with some type of direct debit facility. I support your position wholeheartedly.
@QuirkyXinja, a system that provides a ‘bills Stash’ or preferably multiple such Stash accounts, that allows for direct debits, or scheduled payments, would be great. I could understand if the interest rate for the ‘bills Stash’ was different than that for a normal Stash, provided it was not some useless percentage that did nothing to encourage financial planning. As an example only, assuming that interest is paid into the account at the beginning of the current month, I would suggest something like: 0% if more than 3 withdrawals were made in the previous month (i.e. the account is effectively treated as being transactional); 0.5% if 3 or less withdrawals were made during the previous month; 0.75% if there was no withdrawal in the previous month; 1.5% if there was no withdrawal in the previous two months; full interest (currently 2.25%) if there is no withdrawal in the previous three months. I think this gives a graduated incentive to clients not to withdraw from a ‘bills Stash’ account on a regular basis, but at the same time reduces the risk to the bank if those clients need to do so. Of course this only works if the client can set up multiple ‘bill Stash’ accounts, one for each direct deposit or scheduled payment. EFTPOS and ad hoc payments would continue to only be possible from the clients transactional account.
@XinjaMaker Please also refer to my reply to @QuirkyXinja earlier in this reply. I am not personally aware of any high interest savings account that allow DDs. This can be viewed either as (i) a reason not to introduce them or (ii) an opportunity to introduce them.
The two banks with which I am most familiar are ING and UP
Both banks allow users to create multiple savings accounts. ING allows clients to automatically schedule a transfer of funds from a savings accounts to a transactional account; however, they pay their highest interest rate on only one of those savings accounts. Direct deposits and scheduled payments have to be done from your transactional account. UP pays their maximum interest rate on as many savings accounts as you want to set up; however, at this stage I believe you can only manually transfer funds between a savings account and a transaction account. Direct deposits and scheduled payments have to be done from your transactional account.