Personal Stories

I Own Multiple Digital Bank Accounts And I Move Funds Whenever An Account Offers The Highest Interest Rates

I know, it's like we don’t talk loyalty with banks these days, we talk about which account offers the highest interest rates.  I own multiple digital bank accounts because they are easy to set up and usually cost nothing to create an account. The digibanks also dangle promotional rates for us to sign up.  I can also create an account in the comfort of my home, using just my mobile device. A few verification steps and an account are set up. Because of that, I own at least four digibank accounts and I move my funds whenever there is a promotion. There are interest rate promotions of as high as 3% and I do not need to do much “heavy lifting”. For instance, many banks require you to fulfil multiple criteria before you can have multiplier interest rates. For most digital banks, it’s simple: you just need to park your money there and earn daily interest rates.  This also means that I have moved funds out of my traditional bank accounts as the interest rates offerings are lower than 0.5%.  I feel in control of my finances as I am like a finance manager, moving money to whichever account offers the best rates. I used to rely on other financing instruments such as Treasury bills but since the recent hype on digibank offerings and the attractive rates they offer due to high inflation, I think putting my money in a more flexible environment while earning almost the same interest rates is a great deal. This article is part of TSS Confessions, a weekly column where we delve into personal finance topics that are unscripted and genuine real accounts from people.