PEARLER FEATURES
Is it time for Pearler to start paying interest on our Cash Accounts?
Pearler has previously hinted at interest payments on Cash Accounts. Obviously that wasn't realistic while rates were so low near 0%. After several rate hikes and more to come I am surprised that Pearler hasn't made an announcement by now. Is it time to pay interest on Cash Accounts?
DAVID WHITE
13 September 2022
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5 Comments
nick nicolaides
PEARLER
about 2 years ago
Hi David, thanks for this question. I’m one of the cofounders of Pearler and wanted to jump in to add some info here.
Right now, the client trust account that your money is help in doesn’t earn interest. The reason is they type of account has a range of features built for speed (to get you invested / paid out quicker), but the banks offering more modern accounts don’t have the same access to money markets / interest to pass on. So just in case you were wondering, Pearler is not earning interest on your money. Some brokers do this… not us.
We are looking at how we could make some changes to the type of bank accounts we offer so that interest is able to be earned, but a change isn’t super imminent. Unfortunately, too, the rates that would be on offer from banks aren’t likely to compete with the range of retail high interest savers out there. It is something we are interested in though, because every cent counts.
Appreciate this isn’t an solution to your question, but hopefully provides some context to the current structure and that we are always working towards the best outcome for our investors. For now, we are keen to make sure people are investing as regularly, simply and cheaply as possible.
All the best
Nick
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11
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ReplyZachary Belton
INVESTOR
almost 2 years ago
Hi Nick, would there potentially be a «Pearler Savings» where you’d utilize an ETF like AAA – Stockspot has this sort of option: https://blog.stockspot.com.au/stockspot-savings/
Just an idea to spitball with!
Thanks,
Zac
Like
4
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ReplyDaniel Nehl
INVESTOR
over 1 year ago
Hi Nick,
Another idea that could work really well for many people and maybe be much more feasible for you to implement;
Allow Auto-invest to do a (preferably NPP fast) trato a pre-verified external bank account.
This way, Pearler’s could get the benefit of their own interest rate or even saving on their mortgage offset, while still getting the benefit of always allocating regular investments to the ‘lowest share’ to achieve their preferred allocation ratio.
Thanks,
Dan
Like
1
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ReplyDaniel Nehl
INVESTOR
over 1 year ago
Not sure if that makes sense, but basically just allowing the cash allocation to be an external account – should work for rebalancing as well.
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2
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