Stockspot launches a high interest savings option
Image: Founder and CEO of Stockspot Chris Brycki
Online investment adviser Stockspot has launched a high interest cash ETF with a current return of 2.02%.
Leading online investment adviser Stockspot has launched Stockspot Savings, a high interest cash option that invests in a cash ETF rather than an actual savings account offered by a bank. This cash option compliments Stockspot's five existing portfolios of ETFs, and offers clients a way to earn a relatively high rate of interest on their cash without opening a savings account.
Stockspot Savings invests in the BetaShares High Interest Cash ETF which is currently offering a return of 2.02%. Clients need to deposit at least $2,000 into the cash account, and there's no upper limit. Stockspot Savings is seamlessly linked to a client's Stockspot investment account, meaning you can use it as a cash account and top up your investment account when you'd like to.
Founder and CEO of Stockspot Chris Brycki said the new savings option is a result of client demand. "A high interest option has been the most requested product features from our clients. We expect to see a lot of interest from SMSFs, parents for childrens' savings and older clients seeking a better return on their cash," he said.
The interest offered on Stockspot Savings is higher than a lot of standalone savings accounts offered by banks in today's low-rate environment. There are several savings accounts that offer a higher rate of interest, but they come with ongoing account conditions. For example the Rabo Direct High Interest Savings Account offers a very competitive 3.05% p.a. on your money for the first four months, and drops to 1.80% after this. The UBank USaver Account offers 2.87% p.a., though customers need to deposit $200 a month to get this rate.
In comparison, the Stockspot Savings option has no ongoing deposit conditions to meet, and you can make as many withdrawals from the account as needed. "Banks keep lowering their base rates which makes saving for shorter term goals almost impossible, so we've created a better way for people to save money outside of the bank. The beauty of using a cash ETF as a savings alternative is that you can avoid the hoops the banks make you jump through with high interest bank accounts," said Brycki.
Stockspot currently offers five different investment portfolios to clients that all invest in a range of low-cost ETFs, with varying levels of risk. Stockspot Savings is now available to existing Stockspot clients, and will be offered more widely later this year.