Latest news with #JohnArnott
Perth Now
6 days ago
- Business
- Perth Now
Bank launches ‘no catch' savings account
AMP Bank has added a savings product to its digital offering, promising to strip away 'bonus rate traps' which is leaving millions of Aussies getting little from their savings account. In the past high interest savings accounts were known as a way to offer customers flexibility and a strong interest rates. But over time the traditional account was muddled with added terms and conditions, which according to a 2023 ACCC report, was leading to customers missing out on. AMP Bank GO director John Arnott said this was why AMP was launching its new savings product. 'This is almost like going back to the future, we've seen the success of these high interest accounts in the past,' he said. 'There was a thing in the market 20 years ago which was a high interest online savings account or HIOSA, which was about offering high interest for online accounts that had full flexibility. 'It was very much what you see is what you get, but fast forward 20 years there has been a number of conditions added to these accounts.' AMP launches a new savings account without the fees and hassle of traditional accounts. NewsWire / Nicholas Eagar Credit: NewsWire AMP's new app based savings account has come to market offering savers 4.5 per cent on balances up to $250,000, without a minimum deposit, no withdrawal conditions and no monthly fees. The savings account is only available through its GO app and must be linked to a GO everyday transaction account which will not offer any interest. Mr Arnott said the bank was launch a product from the ground up since the bank only launched six months ago. 'We've gone a bit old school with what you see being what you get,' Mr Arnott said. 'If you look at what consumers want it's transparency, flexibility and peace of mind so we felt if we were going to launch a savings product that our customers are asking for then we should launch a product that solves these challenges.' The launch of a savings account comes as banks are slashing interest rates in line with the Reserve Bank of Australia's rate cutting cycle. The RBA is highly anticipated to cut interest rates on August 12 following its next meeting. AMP GO debit cards are numberless: Picture Supplied Credit: Supplied AMP, unlike the major four banks, does not host any brick-and-mortar branches, and operates as a 'digital bank'. It follows changes made in January when it introduced numberless debit cards for both its small business and personal banking customers, in a move designed to combat rising fraud and scam risks. The retail bank partnered with US payments giant MasterCard to deliver the striking new-look cards, which don't present any front-facing numbers like standard issue bank cards. The back of the card presents a four-digit number. Customers would still need a 16-digital number online through the app to access their account. The app will include other security features such as advanced fraud and scam protection systems to protect customers and multimodal biometric authentication, the bank said.
News.com.au
6 days ago
- Business
- News.com.au
‘Back to the future': AMP Bank goes back 20 years for new savings account
AMP Bank has added a savings product to its digital offering, promising to strip away 'bonus rate traps' which is leaving millions of Aussies getting little from their savings account. In the past high interest savings accounts were known as a way to offer customers flexibility and a strong interest rates. But over time the traditional account was muddled with added terms and conditions, which according to a 2023 ACCC report, was leading to customers missing out on. AMP Bank GO director John Arnott said this was why AMP was launching its new savings product. 'This is almost like going back to the future, we've seen the success of these high interest accounts in the past,' he said. 'There was a thing in the market 20 years ago which was a high interest online savings account or HIOSA, which was about offering high interest for online accounts that had full flexibility. 'It was very much what you see is what you get, but fast forward 20 years there has been a number of conditions added to these accounts.' AMP's new app based savings account has come to market offering savers 4.5 per cent on balances up to $250,000, without a minimum deposit, no withdrawal conditions and no monthly fees. The savings account is only available through its GO app and must be linked to a GO everyday transaction account which will not offer any interest. Mr Arnott said the bank was launch a product from the ground up since the bank only launched six months ago. 'We've gone a bit old school with what you see being what you get,' Mr Arnott said. 'If you look at what consumers want it's transparency, flexibility and peace of mind so we felt if we were going to launch a savings product that our customers are asking for then we should launch a product that solves these challenges.' The launch of a savings account comes as banks are slashing interest rates in line with the Reserve Bank of Australia's rate cutting cycle. The RBA is highly anticipated to cut interest rates on August 12 following its next meeting. AMP, unlike the major four banks, does not host any brick-and-mortar branches, and operates as a 'digital bank'. It follows changes made in January when it introduced numberless debit cards for both its small business and personal banking customers, in a move designed to combat rising fraud and scam risks. The retail bank partnered with US payments giant MasterCard to deliver the striking new-look cards, which don't present any front-facing numbers like standard issue bank cards. The back of the card presents a four-digit number. Customers would still need a 16-digital number online through the app to access their account. The app will include other security features such as advanced fraud and scam protection systems to protect customers and multimodal biometric authentication, the bank said.
Time of India
03-07-2025
- Business
- Time of India
The $100-a-week super habit that could save Aussie business owners from a $500,000 retirement shock
A retirement crisis may be brewing under Australia's economic radar, and it's not among the unemployed, but among the self-employed. A new survey commissioned by AMP Bank has found that close to half of Australia's smallest business owners, including sole traders and micro-businesses, are not regularly contributing to their superannuation, potentially setting themselves up for financial insecurity in retirement. In a national poll of 2,000 small business operators, 55 per cent reported that they make regular super contributions, meaning that 45 per cent do not. That's a significant shortfall, especially considering that most salaried workers in Australia benefit from the mandatory Superannuation Guarantee, now set at 12 per cent. Also Read: Chinese threat or American pressure? What really fueled Australia's 1.3 billion missile purchase But super contributions remain optional for the country's 2.2 million self-employed workers, including tradespeople, creatives, consultants, and other gig economy participants. Live Events And many are choosing to forgo them, often to keep their businesses afloat. 'It's understandable that many small business owners prioritise reinvesting in their business, which can mean super contributions fall by the wayside', said John Arnott, Director at AMP Bank GO on X. The long-term cost of short-term focus The financial trade-off might seem minor in the short run, but the long-term implications are staggering. AMP Bank's modelling shows that contributing just $100 a week to super starting at age 30, assuming a 6 per cent return, could yield over $500,000 by retirement at age 65. That means skipping those small contributions now could result in a half-million-dollar shortfall later in life, a costly oversight for anyone banking on a comfortable retirement. Also Read: Why Australia is taking only 280 people a year from Tuvalu, even as one third want to flee Who's falling behind? The research revealed apparent disparities across industries and regions. Solopreneurs and businesses with four or fewer employees were among the least likely to contribute to super, with just 50–55 per cent making regular payments. Owners of younger firms (1–3 years old) and those located in rural areas were also among the least engaged with super savings. Meanwhile, small business owners in financial services showed the highest contribution rates (71 per cent ), while those in creative fields, already prone to income instability, had the lowest, at just 46 per cent. A system not built for freelancers and sole traders? The issue isn't just financial, it's also structural. Australia's superannuation system was designed mainly with full-time employees in mind, not the growing population of freelancers and sole traders. Flexibility may be a feature of self-employment, but it's also a flaw in this case. Unlike employees, the self-employed don't have an employer automatically paying super on their behalf. And unless they make a conscious effort to pay themselves, and their future, first, they may reach retirement with little or nothing saved. Also Read: Mysterious interstellar object enters solar system; the largest, fastest, and only the third ever recorded What can small business owners do now? Arnott urged small business owners to balance short-term survival and long-term planning. 'Even small, regular contributions can have a massive impact thanks to the power of compounding,' he said. He also recommended practical strategies for boosting super savings. These include setting up automatic contributions through your banking app or accounting software, making lump sum contributions during periods of healthy cash flow, using government incentives such as co-contributions or tax deductions, and seeking support from your super fund, accountant, or other small business owners.
