# Automatic Savings



## Flip (28 May 2009)

Each week my pay is different however I know what my expenses are and would like to transfer any amount over that into my investment account. I currently do this by logging on to my bank at the end of each week to transfer the excess cash. I would like this to be done automatically. Does anyone have an elegant solution for this??


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## Robb (28 May 2009)

Since your pay is different every pay period, its hard to take out the 'left over savings' from the varying amount automatically....
Why not get paid into your savings account, and deduct the known expenses out automatically every week? I know netbank for the CBA has the ability to set up automatic occuring transactions online, so you can specify a transaction on any day, and then have it automatically repeated weekly/fortnightly/monthly...


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## skc (28 May 2009)

Robb said:


> Since your pay is different every pay period, its hard to take out the 'left over savings' from the varying amount automatically....
> Why not get paid into your savings account, and deduct the known expenses out automatically every week? I know netbank for the CBA has the ability to set up automatic occuring transactions online, so you can specify a transaction on any day, and then have it automatically repeated weekly/fortnightly/monthly...




This is the smartest post I've seen here for a while. Great lateral outside the box thinking. Very simple and elegent solution...

Just make sure it is not one of those "no withdrawl or no bonus interest" type accounts


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## Robb (28 May 2009)

skc said:


> This is the smartest post I've seen here for a while. Great lateral outside the box thinking. Very simple and elegent solution...
> 
> Just make sure it is not one of those "no withdrawl or no bonus interest" type accounts




Thanks, yeah that was one of the only problems I could come up with... I use to have a commonwealth account like that, i think it was called a 'reward saver' or something with only 1 withdrawl a month, but I think it has either been fazed out/replaced... not sure about other banks products though.


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## KurwaJegoMac (28 May 2009)

Most banks have the saver account you mentioned (Maximum 1 withdrawl a month and if you withdraw you don't receive bonus interest). I use an online savings account and you can set up automatic deductions and transfers using online netbanking. I'm sure its the same for most banks/institutions. 

It would be a good idea to perhaps pop into a branch or surf online and see what banks/institutions offer you the sort of accounts that will allow you to set up a system like the one Robb mentioned. 

For example I currently have the following setup: Two accounts, one is a regular savings account and the other is an interest earning online account. Every fortnight my pay goes into my regular savings account and I have automatic withdrawls set up which take out most of the pay and deposit it into my online savings account to earn interest.

In your case you'd have to tweak the setup a bit as Rob mentioned. Have all your pay come into the investment account and then set up automatic withdrawls for your known deductions per week/month/whatever. Then whatever is left in your investment account you can use for your investments


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## Flip (28 May 2009)

Thanks for the suggestion of netbank/ putting it strait into the investment account.

I guess what I'm really looking for is a bank that offers as a service the ability to transfer excess funds into a designated account. If none exist its probably because the banks want you to have lots of money earning no interest in a transaction account rather than because it would be difficult to implement...

I am currently using ing direct but talking about this has made me realize i can get a better interest rate:

http://www.ratecity.com.au/savings-accounts/


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## netfleet (28 May 2009)

I have 5.05% with citibank at the moment.  Only for three months though then reverts to 3.75%.  Not bad for an at call account


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## DB008 (28 May 2009)

As others have said in this thread. The easiest ways to start saving is to get it taken out every pay and put into a savings account, automatically. That way you don't see it gone and learn to live on what you get put into that account.
I started like this years ago, and l think it's the best method of saving.


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