Innovative account with disappointing rewards
AMP's Bett3r account is actually 3 accounts that work together to enable a 'money-jar' budgeting style. There is an account for bills and outgoings (Pay), one for goals and savings (Save) and one for leftover cash that you can spend without feeling guilty (Spend). The product can automatically allocate an amount to each account based on your income cycle and depending on what you have told it about your upcoming bills and savings goals.
The product comes with a debit card linked to the Spend account. There is also a rewards program that differs depending on if you use the accounts as a Savings account or a mortgage offset account.
- Once set up, a lot of budgeting for regular monthly or yearly bills is "set and forget", especially if you use BPay or Direct Debit. Bett3r will set aside an amount each month to make sure you have enough for the bill when it comes around.
- Dedicated savings buckets so you can tag money saved for a house, car, holiday, etc.
- Very nice Bett3r mobile app to manage the accounts (although not working in My AMP at the time of writing this)
- No fees as long as you add $2000/mth to the Pay account.
- Fast transfers to other banks, with high transfer limits
- There is a dedicated 'concierge' team that can talk you through how best to set it up for your financial situation.
- Steep learning curve to set up. Forces you to take stock of your current financial situation and consider how to make Bett3r work best for it.
- Does not come with a debit card linked to the Pay account by default.
- No Android Pay or Apple Pay
- The rewards scheme is disappointing. For savings accounts you earn an extra 1.5% interest but this does not apply to any 'extra' money sitting in your Spend account. For offset accounts, you get a 1.0-1.5% bill rebate and ATM fee refund but, for some bizarre reason, only if you have an 'eligible' home loan with AMP (there are only two loan types that are eligible and they might well change in future).
- You cannot protect an amount in your Spend account from being pulled out by the Pay account if there is an unexpected expense that you have entered. There is a good chance that at some stage you will try to pay for something with your card and it will be declined due to insufficient funds. Make sure you have a backup credit card.
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