I’ve been using an app called Raiz for a while now and it has been a huge help in making some simple savings gains in a very short period of time.
Raiz is an automated investing app that lets you connect your bank account so that you can round up your spending and then deposit the cents from every purchase into your account. You don’t notice the amounts leave your account as they are very small but you do when you see your balance grow over time.
As well as round-ups, you can also set recurring deposit amounts or drop a lump sum into your account at any time.
You make a selection from the range of six portfolios available when you create your account (which you can change anytime), and before you know it you are making a contribution to your savings goals as you make your normal purchases everyday.
The portfolios are constructed using Exchange Traded Funds (ETFs) quoted on the Australian Stock Exchange, so you can track their progress and do your research, but the app has some handy stats available at your fingertips on your smartphone.
There is a charge of $1.25/month for accounts with a balance of less than $5000, and for those accounts with more than $5000, the fee is 0.275% of the annual balance.
Making deposits or withdrawals at any time is easy, but this will lead to loss of interest and the whole point of an ETF – using compound interest to grow your account – will be wasted.
Give it a try for yourself and see what you think. It’s really easy to sign up for an account – upload the app to your phone (if you wish) or go to the website and get things started.
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