Latest news with #KateMcCallum
ABC News
01-07-2025
- Business
- ABC News
Is it OK to have multiple bank accounts?
Opening a bank account is pretty easy these days thanks to online banking and apps. But how many accounts is too many and is it OK if they are spread across different banks? We asked a finance and consumer expert what we need to consider when using multiple accounts, including whether it's worth consolidating them. According to data from the Australian Banking Association, the average number of bank accounts Australian's have is about 2.4 per person. Kate McCallum and her husband have multiple accounts, including an everyday account, savings, individual spendings, a home loan and offset account, spread across three different banks. "It just so happened that we were able to get a better mortgage through one bank than our two existing banks," says the finance adviser and author. "So, we went with the third bank for our mortgage and that's where our offset account lives." Ms McCallum, who is based on Darkinjung lands on the News South Wales Central Coast, believes it is not necessarily how many accounts you have, but how you use them that matters. "There is no 'right number'," she says. "If you have multiple accounts and they each have a purpose, bravo. "But many people end up with umpteen accounts that may have had a great reason originally and now have none and it compounds when you couple." According to our Instagram straw poll, many of us have more than the national average. Of 1,811 votes on the ABC Lifestyle account, 43 per cent said they had between three and four accounts, while 32 per cent had between one and two accounts. 18 per cent had between five and six accounts, while seven per cent had more than seven accounts. Our stats are in line with what Ms McCallum has observed when helping clients get their finances in order. "When I deal with people, [the number of accounts] often is one of the biggest friction points," she says. She says there are three things that can happen if you have too many bank accounts: Andy Kollmorgen, investigations editor at consumer advocacy group Choice, says when it comes to day-to-day banking, it's important to make sure your bank isn't charging account-keeping and administrative fees. It's particularly important if you're setting up several accounts for your budget, as you could be charged multiple fees. "All fees will need to be disclosed on the relevant product disclosure statement for the account, which you can find on the website," he says. To find account fees on a banking app, you typically need to navigate to the account details section and look for a 'fees' or 'account Information' section. Some account-keeping fees are charged each month, while others may be conditional on making a certain number of transactions or deposits. You might find yourself forgetting about a bill or direct debit and being charged an overdraft fee. Some people even forget about old bank accounts they have set up. In fact, Australians have about $2.3 billion in forgotten bank accounts, shares and life insurance. If you have multiple bank accounts, Ms McCallum recommends assigning each one a purpose. For example: Automating regular payments can help you manage your money better. "Things like future car registration, rent, mortgage payments, groceries, petrol, anything that you know is a regular expense," she says. She says she likes to review accounts monthly. Ms McCallum also recommends mapping out your money flow (money in, money out) so you have an understanding of your expenses, income and what your savings goals are. Ms McCallum says the more that you can consolidate, the "less stuff there is to do". If you want to reduce the number of accounts you currently have, you could: This article contains general information only. You should consider obtaining independent professional advice in relation to your particular circumstances.
ABC News
25-06-2025
- Business
- ABC News
What you can gain by checking your super account more often
When was the last time you checked your superannuation account? If you're struggling to find your most recent statement or remember your log in details, you aren't alone. Research commissioned by the Australian Retirement Trust shows four out of every five Australians don't know how much they're putting away for retirement. But experts say there are some good reasons we should be checking in on our retirement savings more regularly. Finance and economics consultant Pauline Taylor says we all receive an annual benefit statement at the end of each financial year from our superannuation fund, which we should "file away somewhere". The Melbourne/Naarm-based author says the statement will give you an indication of how much super is in your account and whether it's growing. "You look at the amount your employer is putting in under the superannuation guarantee, some extra money you might have put in as a voluntary contribution and the returns on the investments that your super money is invested in," she says. Kate McCallum is a financial adviser and author based on Darkinjung lands on the New South Wales Central Coast. She recommends carrying out a yearly "super service" (like a car service) to understand taxes, fees and what investment options you're in. "This is really important because a lot of the defaults are age based," she says. "So, if you flip over an age category, you may find that you've been automatically moved out of, let's say, a growth portfolio into a balanced and that may not be what you want." She also recommends checking your super fund's investment management fee. "You don't see that investment management fee because it's actually taken out of your investment returns," she says. "The average fee is one per cent, so if you're paying more than one per cent that's pretty expensive." Anne Fuchs from the Australian Retirement Trust recommends people download their super fund's app on their phone, in the same way they do for banking apps. "Four out of five Australian's don't know what superannuation they're entitled to, in terms of what is the percentage that their employers have to pay as part of their salary," she says. From July 1, Australia's superannuation guarantee rate will from increase from 11.5 per cent to 12 per cent. This is the percentage amount of your ordinary earnings that should be paid into your super by your employer. "This is why it's really important that people pay attention to this compulsory saving that's linked to their wages," she says. The Australian Taxation Office (ATO) says the best way to perform a super check is either on ATO online services through myGov or by contacting your super fund directly. The ATO says it's important to check your super balance each year to see how much you have and keep track of your employer contributions. "Your employer should pay your super at least every three months," a spokesperson says. "They may choose to do it more frequently, such as your regular pay cycle." If you do not receive super contributions or the amounts are incorrect, contact your employer and request an update or report it to the ATO. In a best-case scenario, money you didn't know you had. If you do a super check through myGov, you might find you have lost or unclaimed super which you can roll into one account. You may have lost track of some of your super when you changed your name, address or job. The ATO says this is why it's important to ensure your super fund has your current details. "Lost super is when your fund has lost touch with you, or your account is inactive," a spokesperson says. Kate McCallum says you might also find that you want to change to a fund that has lower fees. To reach a comfortable retirement, here is the estimated super balances needed at certain ages: *Estimated balance via ASFA Super Balance Detective calculator I have always checked my super balance directly through my superannuation fund, but decided to put the myGov check to the test. I had already linked the ATO to my myGov account, so the process was made easier. I was surprised to find that I have two superannuation accounts; however, one wasn't active and had a zero-dollar balance. It also wasn't charging any fees, so I have marked it to follow up and close. During my super check-in also discovered that my death beneficiary nomination had lapsed, and I needed to update it. This wasn't a straightforward process as my fund required me to post a copy of the form, rather than email or update it online. The ATO recommends taking the time to ensure you have a valid death beneficiary nomination in place with your super fund, as this isn't covered by your will. This means your loved ones will not be put through unnecessary difficulties to finalise your estate. Most binding nominations expire every three years. This article contains general information only. You should consider obtaining independent professional advice in relation to your particular circumstances.
