How group savings account "voting" works
Everything you need to know about how decisions are made.
So you have taken the leap and started your own group savings account (or better yet, your own family bank).
Cheers to you and for your fortunate family & friends who now get a lifetime of optimized earning/saving money because of you.
Now that you have your group savings account started, you are likely going to have to explain how the voting works for decisions.
Although it is possible to get pretty complex with this (the only real rule being that everyone has to be involved/no passive members), it’s likely best to keep it simple out of the gate.
"Simple" being consensus approval for all group savings account actions.
Luckily with savings, this is pretty much a no brainer. It can get more complicated with other family bank options that save you or earn you way more money, but that’s for another article.'
With your group savings account, every member has the ability to search & find the best business savings deposit or business money market deposit account available at all times.
More often than not, “best” means the highest rate (APY).
If any group member should have a better option than your current bank choice than they will simply propose that the group moves their funds to the better/new bank.
Once this is proposed to the group, each group member has the ability to vote yes or no.
As the only objective is to increase the rate being earned (APY), this should really be a brainless vote (“1.50% is higher than 1.20%, so I vote yes”).
Yes, it’s really that simple.
It is possible for a variety of reasons for someone to vote no. Maybe they are aware of hidden fees that banks may try to hit your group with or possibly they don’t believe that the group shouldn't give their money to certain entities with questionable ethical track records — Wells Fargo, but this is likely a rare exception as far as savings accounts go. Then again, it is also one of the massive benefits of the group format as you get insights from a wide variety of individuals.
So if they should say no, and you have set up the group account to only allow for consensus decisions, no money is moved and no new bank account is opened.
Typically groups put time constraints on decisions. These can be as low as 24 hours and as long as a few weeks. It really just depends on how hardcore the personal finance nerd in the group is about earning as much interest as possible (every group should have one of these guys/gals) and how busy the other members may be with, well, life.
Long story short, this is a truly simple process that guarantees everyone is on the same page at all times while still allowing everyone to benefit collectively for the long haul.
Vote “yes” to starting your own group savings account today.