Is it time to change up the way you view saving?

5 Minute Read

Finding a good return on your money certainly isn’t getting any easier. In the current low interest rate environment, it could be time to look at changing up the way you think about saving and take a moment to examine a combination of ways to improve your returns.

 

Most people’s default view of savings is to put their money in the bank after finding the best interest rate they can. But what if your bank offered you a different way to look at how you save?

 

Rather than just settling for an interest rate on your Australian Dollars, why not look at how moving some of your money into foreign currency may potentially offer you greater returns as currencies fluctuate against each other.

 

After all, there may be a currency you are interested in or are familiar with as 29% of all Australians are born overseas1.

 

Alternatively, you may be thinking about visiting another country for a holiday. If you are, you’re not alone. In 2018, Australians made 6.3 million trips overseas2. By putting money away in the currency of the country you plan to visit, it could be a smart way to avoid currency fluctuations and receive a return on what you save.

 

Making the move into foreign currency

 

So how do you set yourself up to save in foreign currency? A straightforward way is to open the award-winning HSBC Everyday Global Account. It allows you to buy, hold, and spend in 10 different foreign currencies – AUD, USD, GBP, HKD, EUR, SGD, CAD, JPY, NZD and CNY3 and – all from one account number.

 

There are no monthly account keeping fees4 (saving you money). When you want to exchange currencies, you have access to competitive Real Time5 exchange rates. Unlike other banks that may set their rates once or twice a day, HSBC’s move every 3-5 seconds, allowing you to make the most of fluctuations. View Real Time foreign currency exchange rates5 here.

 

You can use the HSBC Everyday Global Account as your regular everyday bank account as it comes with a Visa Debit card giving you the convenience and security of Visa payWave, Google PayTM and Apple Pay6. Use your own money for purchases in Australia, overseas and online without any transaction or hidden fees. Plus, there are no ATM fees7 for withdrawing cash here or anywhere in the world. Once your account is open, download the HSBC Australia Mobile Banking App and switch between currencies instantly 24/7 wherever you are.

 

Save even more

If you do use your HSBC Everyday Global Account as your regular everyday bank account in Australia, you could save even more thanks to Everyday Extras8. By depositing $2,000 or more into your Everyday Global Account each month, you’re on your way to earning cashback on your regular spending and a bonus as a new customer.

 

  • Earn 2% cashback on tap and pay under $100

Imagine earning cashback on your everyday purchases like groceries or petrol. You could receive up to $50 cashback10 each month when you tap and pay with Visa payWave, Google PayTM or Apple Pay6 for eligible purchase under $100.

 

  • $100 Bonus for new HSBC customers

Being new does have its benefits. With your new HSBC Everyday Global Account, you could receive a $100 Bonus9 when you deposit $2,000 or more each month for three consecutive months, as long as you do that within six months of opening your new account.

 

Saving in foreign currency

If the appeal of moving your money into foreign currency is working for you, then you also have the opportunity to earn interest on what you save. With the HSBC Flexi Saver Account, you have the opportunity to save in up 10 different foreign currencies. These are the same currencies as those you can hold in the HSBC Everyday Global Account, and you can see the different interest rates paid on those currencies here. By opening a HSBC Flexi Saver, you could not only make interest on what you save but also make gains if you have a viewpoint on the movements of particular currencies.

 

Again, there are no account keeping fees. There is no minimum ongoing balance needed. And you can take advantage of the Real Time foreign currency exchange rates5

 

Saving in Australian Dollars

If you choose to save in Australian Dollars, the HSBC Flexi Saver gives you the best of both worlds. You have access to your money while you earn interest. Additionally, if you can increase your account by $300 every month11, you can earn more interest with a Monthly Bonus rate (find out more here).

 

Looking for more returns?

If you are looking to save in Australian Dollars and don’t need to access your money for a few months, then the HSBC Serious Saver could be the account for you. As the name suggests, you receive more interest if you don’t touch your money. The introductory rate is only available for a limited time, so take a look at how much you could earn here. Plus, if you have activated Everyday Extras, you will receive a bonus 0.4% p.a. interest12 above the annual ongoing variable interest rate (after your 4 month introductory period expires). Extra interest is a great reason to leave your money to grow where it is. 

 

Your new view on saving

Has this given you some new food for thought about how to save? After all, saving in, or even just holding foreign currencies is a slightly different approach to gaining a return on your money. What may have been perceived as complicated before, is now straightforward with the award-winning HSBC Everyday Global Account. Couple this with some innovative savings accounts, and there really is a new way to think about the age-old problem of getting returns on your money.

 

Important information

Issued by HSBC Bank Australia Limited ABN 48 006 434 162, AFSL No 232595. This brochure provides general advice only and doesn’t take into account your objectives, financial situation or needs. Consider the relevant Product Disclosure Statement (PDS) and Terms and Conditions before acquiring the product. A copy of the PDS and Terms and Conditions is available on hsbc.com.au, or by calling us on 1300 308 008.

1.https://www.abs.gov.au/ausstats/abs@.nsf/Latestproducts/3412.0Main%20Features22017-18

  1. https://www.budgetdirect.com.au/travel-insurance/research/average-holiday-cost-statistics-2019.html
  2. Currency restrictions apply.
  3. Other fees and charges may apply.
  4. Real Time Exchange Rates will apply for AUD, USD, EUR, GBP, CNY, HKD, CAD, NZD, JPY, CHF, SGD, when using our Online Banking or Mobile Banking to: (1) transfer between HSBC Accounts and the foreign exchange (FX) market is open (excluding weekends, currency and US holidays) or (2) to make international transfers within currency cut-off times.  Transfer fees and correspondent bank fees may apply for transfers outside of HSBC Australia.  When the FX market is closed on weekends (that is from the US market closing time on Friday to the opening time of the Asia market on Monday), the exchange rate which will apply between your HSBC Australia accounts is the exchange rate applying at the time the US market closed plus an additional weekend spread.  The HSBC Daily Exchange Rate, set once a day (excluding weekends and NSW public holidays) will apply to transfers outside of HSBC Australia entered after currency cut-off times, on currency holidays and on NSW and US public holidays, and will apply for all future-dated transactions on the future date of the transaction.  FX transactions are subject to foreign exchange risk associated with exchange rate movements.  HSBC FX accounts should not be used for speculative purposes.
  5. Terms and conditions apply to the use of Apple Payand Google Pay. Excludes HSBC Corporate Cards.
  6. HSBC Group ATMs (in Argentina, Mexico and Uruguay) and other ATM owners/operators may charge an ATM Operator Fee for withdrawals or balance enquiries at their ATMs.
  7. HSBC Everyday Extras is a feature of the HSBC Everyday Global Account available from 1 August 2019. To continue to be eligible to receive Everyday Extras you will need to deposit AUD2,000 or more into your HSBC Everyday Global Account before the last day of each calendar month. Refer to the Supplementary Product Disclosure Statementfor full T&Cs.
  8. The AUD100 bonus paid in AUD to new HSBC customers who open an HSBC Everyday Global Account before 31/07/20 and deposit AUD2,000 or more per month for three consecutive months within 6 months of opening the account, Cash Bonus Terms and Conditions (PDF,225 KB).
  9. 2% of the purchase price is paid into your Everyday Global Account (capped at AUD50 per month) when you tap and pay using Visa payWave, Apple Pay or Google Pay for eligible purchases under AUD100. Eligible purchases must be made in Australian Dollars and where the merchant or its financial institution/ payment processor is registered in Australia. Excluded are purchases made for business, commercial or government purposes (including bus, train and ferry), cash withdrawals, foreign and non-fiat currency transfers (such as Bitcoin), travellers' cheques, money orders or money transfers, car parking and vending machine transactions, point of sale cash withdrawals, debt repayments, refunds, payment reversals, gambling and transactions between HSBC accounts. HSBC may deduct payment of the Cashback offer where you reverse or cancel a transaction.
  10. Monthly bonus offer valid as at 2 September 2019 and subject to change. Rates are current as at 23 March 2020 and subject to change. No interest is incurred on the portion of balances over AUD$ 5 million.
  11. 0.4% bonus interest is payable above the annual ongoing variable rate on HSBC Serious Saver balance up to $1,000,000. Generally, withdrawals made between the 28th of the month and 27th of the subsequent month (inclusive) will result in no interest being applied for that month. For example, withdrawals on 28th of December, will lead to no interest being applied for the month of January. The ongoing variable rate applies after the introductory rate and is paid when you make no withdrawals during the month.

 

The HSBC Everyday Global Account was awarded the Canstar Innovation Excellence Award in April 2018, and the 5-Star Rating for Outstanding Value – Travel Money Card in June 2018/2019 and Outstanding Value – Travel Debit Card in September 2018.