Feature Spotlight: Savings Sheds
Debut is building the next generation of banking in New Zealand, with feedback, ideas and stories from Kiwis. Together, we are rethinking what a bank can do for our customers. In this article, we will talk about Debut’s approach to savings.
As with everything we do here at Debut, we want to make sure that the entire service is thought through in such a way that we can squeeze out every last bit of benefit for our customers, and we’ll always keep striving to improve.
We’re calling our new savings accounts Savings Sheds. We like the mental association of having a space to store something you want to use and it feels like a very wholesome Kiwi kind of image. Let us know what you think about this name. We’re open to suggestions.
When we originally set out to build the savings function within Debut, we had to ask ourselves a few questions:
What is a savings account for? Do you even need one?
The ability to set some money aside is very helpful when you are trying to make larger purchases or to set aside some reserve for the unknown. This is pretty obvious. So, yes, you do need somewhere to save.
Questions like this may seem straightforward in this case, but it’s a question we want to keep asking while we build Debut. Do we need this? Why? What is the best way from A to B? We’re not interested in carrying on with the status quo; we want better.
Breaking it down, what are the most important components for saving money?
We have found that there are essentially three things that need to be in place to save money.
- A plan.
- Deposits.
- Exponential growth.
A Plan 
Technically, you can save money without a plan; you just set some money aside. Done.
BUT (and it’s a big but,) if you have a plan you can set a goal, set how often you want to save and when you would like to reach your goal. The whole thing shifts from a perspective of “one day I might do this,” to “I will be able to do this by that time.”
The whole thing shifts from a perspective of “one day I might do this,” to “I will be able to do this by that time.”
Debut helps you to set savings goals and stick to them
While it is important to be realistic about what is possible, putting in the mahi to save for and then reach a goal can be incredibly rewarding. Reaching these milestones helps people to feel empowered and motivated.
Savings Sheds from Debut make use of SMART goals. If you’re not familiar with SMART goals, it’s an approach to goal-setting. SMART stands for Specific, Measurable, Achievable, Relevant and Time-bound. By setting SMART goals, our customers can be confident that they are working towards achievable targets.
Savings Sheds asks you to set up your goal and your intention behind it. It then asks when you want to reach your goal and helps you to plan how you’ll get there. If you’re saving for a larger amount or don’t have a date in mind, Debut can help you calculate when you’ll reach it, so you’ll always know when you’re on track or when you need to look more closely at your goals.
We’re also working on including Savings Milestones so that you can celebrate your progress along the way. Milestones give you more short-term targets and help you reach your overall goal bit by bit.
Deposits 
Naturally, you need to actually be putting money into your savings for it to grow quickly. Depending on your situation, it may be challenging to set aside large amounts. The good news is that a lot of modern financial management teaches us that even small amounts of money do add up over time.
Debut helps you to add a bit more to your savings
When you set up your Savings Shed, you’ll have the option to schedule regular deposits. You might choose a small amount, like $10 per week or something heftier around the same time you’re normally paid. Having this baseline in place helps to make sure you’re contributing to your savings goal regularly. But that’s not all.
We previously talked about how Debut helps to automate budgeting for you by helping to figure out how much you typically spend on certain things. When you’ve spent less in a particular area than you normally would, Debut can automatically encourage you to move that amount to your Savings Shed. By doing this, users can effortlessly increase their savings without even thinking about it.
There are probably fewer loose coins floating around your sofa, car and pants pockets than there once were. Most of our spending is digital these days and loose change has largely become a thing of the past. However, most shops and restaurants still charge in dollars and cents, e.g. a coffee for $5.80 (that’s with oat milk.) Debut helps you to squeeze just a bit more into your Savings Sheds by rounding up expenses and dropping the change into your savings. This small change can quickly add up over time and can make a real difference in helping users achieve their savings goals.
Exponential Growth 
With Debut, our goal is to make working with money effortless. We want to build supportive mobile banking that makes it easy to make smart and informed decisions about your money so that you’re always getting the best rate possible.
Debut puts your savings on autopilot
Savings Sheds is not your traditional savings account. Unlike other accounts, we automatically optimise our interest programme to make sure users get the best rates possible. This means that our customers can be sure that they are earning the maximum amount of interest on their savings.
Debut will always default to the most conservative plan, but depending on your savings goals, your income and even your age, you might opt for a more robust growth option. Debut has you covered here too, and will let you choose the plan that’s right for you. Regardless, you’ll always benefit from compounding interest on your savings.
One of the great things about Savings Sheds is that there are no penalty fees for withdrawing money from their savings. We understand that life can be unpredictable, and sometimes unexpected expenses arise. With Savings Sheds, our customers have the flexibility to withdraw their money when they need it, without any penalty fees. After all, the whole point of saving is to help customers to keep and grow their money, not eat away at it with fees.
With Debut’s automatic suggestions, round-up feature, compounding interest and flexible withdrawal options, Savings Sheds is the perfect savings tool for anyone looking to take control of their finances.
Debut is a new kind of New Zealand bank being shaped in collaboration with Kiwis like you. We’re so excited to announce our new savings tool, Savings Sheds, and we’d love to hear what you think about it! Do you have any cool ideas or features you’d like to see us add? Join Backstage, our open community forum and share your thoughts with us. Don’t be shy. We’re all ears!
Debut will start to roll out later this year. Click below to Join the Waiting List.
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Please note, Debut is not a registered bank under the Banking (Prudential Supervision) Act. This is about our future intentions. Investments with us are not supervised currently by the Reserve Bank of New Zealand.
Related Topics:
Savings Sheds - Smart Savings Tool