Get Stashing! 💰 With a 2.25% interest rate

#55

Amazing start - well done.

Question as a investor - what do you do with all those deposits ? Given such a amazing rate, I assume you place it with other banks at a much lower rated and eat the difference as a loss for the time being ? How big is the difference ?

Assume the situation will change when you have home loans but if they are also equally super sharply priced say at 2.75% wouldn’t that leave you with one of the tiniest margins ever by a bank ?

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#56

As a fellow XinjaBrett - I have no issues with the concept of BrettStash :smile:

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#57

Hi There,

One thing to consider is that the requested additional direct debit feature in a stand alone transaction acct is kind of either out in the marketplace or has been tried before.
IE One of the first direct banks offered an investment builder acct. (Ok interest rate) with direct debits and bill pay turned on and a high interest transaction account (eAsysaver)
The former died out while the latter lives on albeit with another name.

The Stash account is a pretty good feature and I’m thinking your original thought to make customers think twice before direct debiting is bang on the money.
The differentiator might be to empower your customers to handle their high interest savings and every day transactions with inbuilt budgeting that “could” start to predict when to transfer funds stashed funds to your everyday acct.
Automated sweeps are one way of doing that but hey others are already doing that right? And people are quick to complain when the “automation” fails them.
But, inbuilt user driven budgeting inside a banking app is not so common. Imagine how many use cases you get then because customers are driving it themselves.

Finally, I have an offset account and use it to pay my bills. If I want to save for something I would look for a high interest savings account and for everyday discretionary spending I’d like to use my Xinja MC. So the release of Stash has plugged a banking gap for me at the moment.

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#58

Naive question…

Yes, keep a stash account separate from the transaction account.

But why can’t we earn 2.25% on BOTH accounts?

Surely this is better than complicating a “move it out of sight” stash account with some (but not all) features of a transaction account?

(Xinja earns every time I make a payment with my card, after all)

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#59

Still keen to get a response to my now buried up the list question eg what does Xinja do with the cash ? What does Xinja earn on it vs what it pays out ( I assume it’s a loss for now). Thanks.

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#60

Loving the simplicity and the rate of Stash. Personally happy to have DD disabled on Stash. It’s a good security feature. Not fussed about no interest on the standard bank account as I basically plan to maintain a zero balance. Stash is king!

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#61

@CaptainXinja Just to clarify my thoughts on what Xinja is proposing at this stage. It sounds like there will be three accounts: (i) a single zero interest transaction account; (ii) a single high interest Stash’ account, with multiple buckets; (iii) and a single Billstash account, with interest rate yet to be determined.

Questions:

  1. Will the interest paid into the Stash account be be paid into each bucket on a pro-rata basis?
  2. Will there be multiple buckets available within the Billstash account? If “No”, this would significantly lower my interest in using a Billstash account. If “Yes”, how would you identify the bucket from which a particular direct or scheduled payment should be paid.
  3. Will it be possible to transfer money from a stash account to a Billstash account/bucket?
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#62

HI @James1. You’re correct - that is the plan. Answering your questions

  1. Yes - interest will be distributed pro rata
  2. No there won’t. Direct debits that pull obviously would only pull from the bsb and account number level so we can’t control. If we allowed people to define which bucket a direct debit should come from, then we could in theory connect a specific DD to a specific bucket, but we need to allow for DDs that the customer sets up and doesn’t define (do we just pull payment from each bill bucket equally etc?). This is why we couldn’t do it thru multi stash. In parallel we will be working on categorisation and insights so you’ll be able to look at your bill account by merchant or category (eg: housing, utilities, insurance etc.).
  3. You’ve got me on that last one - pretty sure you can go from stash to bill but need to confirm that and find out whether you can move from mini stash to bill! Will post again when I know - it might not be defined yet.
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#63

@CaptainXinja In response to point 2. Would it be possible, once categorisation and merchant identification is available, to link a specific merchant or category to a bucket?

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#64

@CaptainXinja Given the answer to @James1 second question, do you have a lead time on multiple billstashes? You probably don’t as yet, but just putting it out there again that there is a use case for multiple so hopefully it can be put on the agenda.

Cheers,

Brett

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#65

Hi @Kain! Not in the bills account as we’re not planning to have buckets within that, but rather we’re planning to be able to proactively say (based on your transaction account) ‘This payment looks like a bill’ (ie once we’ve got enough data to say it’s a regular payment of similar amount) - ‘do you want to pay that out of your bills account?’. Also, we’ll have insights and categorisation so you’ll be able to see how much you spend on a category like ‘utilities’ ‘homeloan’ or ‘car insurance’ in any one month.

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#66

Hi Brett - actually - as per my comment to @James1 - we’re not planning to do multi stashes within bills, unless we can see a way around the direct debit issue, without multiple bill accounts. A direct debit can’t identify a virtual account - it can only identify a bsb and account number. We haven’t solutioned the bills account yet - we’re focused on scheduled payments and transfers and multi stash at present in this area but they are all highly related and the aim was to deliver in quick succession. Still aiming for this quarter for multi stash but it’s looking tight…

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#67

@James1 just to update you - yes we will be able to move from stash to bills account directly and vice versa. That includes from mini stash to bills.

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#68

Hi @CaptainXinja, thanks for the reply. Sorry, misunderstanding. I didn’t mean multiple buckets in a single bills stash, I meant multiple bill stashes each with its own BSB and account number. Cheers, Brett

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#69

@CaptainXinja Thanks for your quick responses. I believe that @brett and I both would like to see the eventual introduction of multiple Billstash accounts, each with its own account number, which would enable specific direct debits and scheduled payments to be paid directly from those accounts, it seems unlikely that Xinja will consider their introduction, at least in the near future.

However, the ability to make direct transfers from a mini Stash to the Billstash may allow for a possible workaround. Funds for specific purposes (including direct debits) could be stored in individual miniStash accounts, then automatically transferred to the Billstash account on the same day (or in my case more likely the day before) the direct debit is drawn from the Billstash account.
This would still be clunkier and less efficient (from the client’s perspective) than allowing direct debits and scheduled payments to be permitted directly from a miniStash account. It would also be essential for Xinja to ensure that its systems are sufficiently robust so as to ensure that scheduled transfers from a miniStash account to the Billstash account take place before the direct debit from the Billstash account is effected; which is the main reason that I would prefer to schedule both activities on consecutive days rather than the same day.

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#70

any timeline for this much awaited feature? :blush:

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#71

Hey Rob, is this in regards to Stash or the multiple stash accounts?

In regards to Stash account it is already out! As for the multiple stash accounts it is likely going to be delivered in this quarter (Jan-March) as seen by the road map here: Road Map

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#72

Thanks @Karvy :ninja_emojis_pink_03:

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#73

@Karvy he’s referring to yet to be named bill stash (read the thread history)

#74

Hey @brett wasn’t sure as he wasn’t replaying in particular to the bill stash or just the topic in general. Bit of ambiguity there but thought I would try and help