How to save some money for a rainy day?
August 20, 2013 5:15 PM   Subscribe

I've recently acquired a small sum of money and I'd like to put it somewhere where I can't touch it, except in emergencies. It's not a massive amount, but its more than I usually have on hand and I'd rather not squander it. If I just leave it in my bank account I know I'll end up using it up. Where can I put it so that its aavailable in emergencies but is still hard to access? If it gains interest that would also be good. I'm in Australia.
posted by Charlemagne In Sweatpants to Work & Money (6 answers total) 1 user marked this as a favorite
 
Open up a savings account at a different bank than your regular bank and destroy the ATM card for the account so that if you want to make a withdrawal you have to do it in person at the bank. Ideally, pick a bank that doesn't have any branches convenient to where you live, work, or regularly pass by.
posted by Jacqueline at 5:41 PM on August 20, 2013


If you need some of the money to be accessible for emergencies that might occur outside of the bank's business hours, put a roll of cash in a plastic bag and then freeze it in a block of ice placed in the very back of your freezer.
posted by Jacqueline at 5:42 PM on August 20, 2013


Best answer: Online banks like ING and RaboDirect have the best interest rates - typically MUCH better than banks.

The only way to get your money out of their online savings accounts is to transfer it to you linked account at another bank which doesn't happen until the next day. Not sure if that counts as "hard" enough for you.

The best interest rates at banks are term deposits, but generally if you withdraw before the end of the term you lose all the interest for that term. Also you generally have to do it in person, so those two factors might make it enough of a disincentive.
posted by trialex at 5:55 PM on August 20, 2013 [3 favorites]


go to a bank and get a CD. CD's have interest (although it is crappily low) plus they have a duration: 1 year, 2 year, 5 year etc.

You can get at your money in an emergency, but you lose nearly all the interest. The fact that you placed the money in for a specific term helps you tend to leave it there.

G
posted by gnossos at 6:15 PM on August 20, 2013 [1 favorite]


Response by poster:
The best interest rates at banks are term deposits, but generally if you withdraw before the end of the term you lose all the interest for that term. Also you generally have to do it in person, so those two factors might make it enough of a disincentive.


I'll put it in a term deposit; now I'm trying to decide between my bank and ING/RaboDirect.
posted by Charlemagne In Sweatpants at 6:55 PM on August 20, 2013


Response by poster: It's been placed in a term deposit account with Bankwest, which according to this tool meets my requirements.
posted by Charlemagne In Sweatpants at 7:28 PM on August 20, 2013


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