Get Stashing! 💰 With a 2.25% interest rate

#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

#75

Hey @contact.rob, we will be rolling out multi stash first, then a bills account. Per the roadmap https://trello.com/b/DvScpL4o/xinja-roadmap. multi will be this quarter, then bills soon after that.
We’ll update the roadmap once we have a clearer timeline :world_map:

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#76

Bit of a late proposal.
I used to work for bankwest. One of the well received feature was their Zero Transaction account that offered a $100 credit on their account (your account can go to -$100 without fees or charges. The issue I see with that for Xinja is it will cost Xinja and also will mean customers are required to do a credit check. Onboarding process becomes clunky…

I’m not sure weather it is possible to allow for direct debits only, you to go into negative balance say up to a certain amount say 150? Or 250? On the condition that your TOTAL account (incl stash) balance with the bank is above zero. You then offset the negative balance against the stash savings and not pay interest on that balance. This protects customers from those horrible failed payment fees by the suppliers!!!
Doing this, it does not cost Xinja money and the customer does not earn taxable income on one side and have a non-deductible expense on the other for tax time. Almost like an offset feature on a mortgage!

Since customers must move money through the transaction account there is technically no risk to Xinja as they cant withdraw below $0. It also promotes the habit of managing cashflow/savings

Just a thought.

#77

Throwing my same question in here for the third time and hoping to get a reply.

What does Xinja do with all the very impressive stash $$$$$ coming into our bank ? I assume you can’t earn anything like %2.25 by placing it with another back so what gives ?

#78

I think you may need to accept that some things are commercial-in-confidence. Despite Xinja being the most open I have ever known a bank to be in terms of community engagement, logically it wouldn’t be in its interests (and ultimately its customers interests) to openly discuss every aspect of the Xinja business plan. Without wanting to open the can of worms that is fractional reserve banking, the answer may be (likely is) that Xinja is building its reserves in readiness for future lending activities.

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#79

Totally agree.

Would be interesting to know, but ultimately Xinja can’t set a precedent of answering every commercially sensitive question asked by the community.

To the extent capital management is discussed, it would be more appropriate to discuss in the investor update.

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#80

Hey @Jckorn,

We are currently looking into some kind of ‘sweep’ feature but haven’t made the call yet if we will be offering it, or exactly how it would function if we did!

It definitely generates a lot of debate around here, you can join the lively conversation in Sweep technology. We will update this and the Xinja roadmap if we do decide to go ahead and sweep our customers off their feet :wink: