Stockspot, Australia's largest robo-advisor, has launched a high-interest savings account that aims to give Aussie investors an alternative to the shoddy interest rates provided by big banks.
The new Stockspot Savings accounts will use BetaShares' popular cash ETF (AAA), which has delivered an annual return of 2.02%, as a vessel for holding investors money.
"The current state of savings accounts is equivalent to keeping your cash under your mattress," said Chris Brycki, the CEO of Stockspot.
"There aren't simple, easy to use options for savers that avoid onerous monthly conditions. Meanwhile most stock brokers, super funds and investment platforms take huge fees from the piles of cash entrusted to them and pay well below the RBA rate of 1.5%."
BetaShares cash ETF is an interesting case. The product invests entirely in "at call" bank deposits (deposits that can be called in daily) with major banks. The fund is much like a term deposit, only that investors can trade in and out of it every day.
Stockspot Savings is initially only available to Stockpot clients and will later be rolled out more widely.