19 September 2012

The Top Seven Money-Saving Mistakes - Part 2

Is it possible to make mistakes in saving money? Unfortunately yes, it is. The good news is we can learn from the mistakes of others and apply them to our own situations. This is Part Two in the Finance Tip of the Day series covering the seven money saving mistakes.

Money Saving Mistake No. 2: Restricted Accessibility

Savings accounts vary in their accessibility, but having one where you are heavily penalized for early withdrawal may be a mistake. If you do have money wrapped up in something of this nature, experts agree that it's a good idea to start another savings account that's liquid - that is, an account you can get at if you need it without penalty.  That isn't to say you can just dip into it whenever you go over your allocated spending though. An online account where you need to transfer money to your regular account is a good idea, especially for your Emergency Fund. After all, in an emergency you need to be able to access funds quickly.

1 comment:

  1. I really like the electronic-access-only savings accounts for this. I'm with Bendigo Bank, and their e-saver accounts can do internet direct deposits and BPay payments, but they don't have a card attached. They earn a minuscule amount of interest (I'm going to look at similar accounts at other banks for better interest), but don't have any penalty for withdrawals/transfers like a term deposit would. It's a good type of account for an emergency fund, and I also use one for my annual expenses.


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