Australian online investment adviser and fund manager Stockspot has established Stockspot Savings, a high-interest savings option aiming to offer competitive interest rates to saver accounts.
Stockspot said the initiative is designed to be an alternative for a high-interest bank account, investing client money into a high interest cash ETF, currently the BetaShares High Interest Cash ETF, which offers 2.02 per cent.
The firm added that high interest cash ETFs give saves the same interest rate as most banks, without the need to open a bank account or lock away money at the same rate.
Chris Brycki, CEO and founder of Stockspot, said: “The current state of savings accounts is equivalent to keeping your cash under your mattress. There aren’t simple, easy to use options for savers that avoid onerous monthly conditions.
“Meanwhile most stock brokers, super funds and investment platforms take huge fees from the piles of cash entrusted to them and pay well below the RBA rate of 1.5 per cent.”
Mr Brycki added that Stockspot is aiming to help clients achieve their shorter-term financial goals with the new offering.
“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,” he said.
“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.”
Stockspot Savings is initially only being made available to Stockpot clients and will later be rolled out more widely.
“A high interest option has been the most requested product features from our clients,” Mr Brycki said.
“We expect to see a lot of interest from SMSFs, parents for childrens’ savings and older clients seeking a better return on their cash.”
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