Can I Make My Savings Less Accessible to Improve My Saving Habits?

___________________________________________
“I was wondering if there is a way to have a savings account that isn’t just immediately accessible. I am struggling with saving right now, I am with asb, but with the app, it’s so easy to just dip into, that I find saving difficult. Anyone got any suggestions on how to help with this? I was thinking if I could set up a savings account with another bank that it could work, as can’t do instant transfers, is this possible?”
(Original question on Reddit)
___________________________________________

I understand your struggle with saving, and it’s common to find it difficult when funds are easily accessible. However, it’s great that you’re thinking about improving your savings habits. Here are a few suggestions that might help you:

Set Up a Separate Savings Account

You’re right that setting up a savings account with another bank could make it harder to dip into your savings. This is because transfers between banks usually aren’t instant, which could deter impulsive spending. So this could be a good option if you want to set and forget your savings. You may be able to ask your bank to hide a specific account from your app view, rather requiring a branch visit or web login instead of the app to view and adjust that particular savings account.

Use a Notice Saver Account

Some banks in New Zealand offer Notice Saver accounts. With these accounts, you need to give notice (usually 32 days) before you can withdraw your money. This could help deter impulsive spending.

Automate Your Savings

Set up an automatic payment that goes into your savings account every payday. This can make saving a regular part of managing your money.

Create a Budget

Understanding your income and expenses can help determine how much you can save. Try to include savings as a fixed category in your budget.

Set Savings Goals

Having a clear goal can make saving feel more rewarding. Knowing what you’re saving for can keep you motivated, whether it’s a holiday, a new car, or an emergency fund.

Avoid Impulse Purchases

Try to wait 30 days before making a nonessential purchase. After a month, you might find that you no longer want the item, saving you money.

Term Deposit

A term deposit is a type of savings account where you deposit a certain amount of money for a set period of time (the term) and earn a fixed interest rate. The advantage of a term deposit is that you can’t access the money until the term is up, which can help you resist the temptation to dip into your savings. You can select terms from 30 days up to 5 years. However, keep in mind that term deposits usually require a minimum deposit, and you won’t be able to add more money to the account during the term.

Everyone’s financial situation is unique, so what works for one person might not work for another. Finding the right approach may require some trial and error. Experiment with different methods until you discover what works best for your saving habits and financial goals. The key is to make saving less convenient and accessible while staying disciplined and committed to your financial objectives. Speaking with a financial advisor to understand the best savings strategy for your situation is always a good idea. Good luck with your savings journey!

Hope this helps.

Regards, Clive Fernandes (Financial Adviser)

Director – National Capital 

Disclosure:  I am the director of National Capital, a KiwiSaver advice firm. The views expressed in this article are the views of the author. The information provided is of a general nature and is not intended to be personalised financial advice. You may seek appropriate financial advice from a Financial Adviser to suit your individual circumstances or contact National Capital.