Ann: SWF 1H FY2023 Half Year Results Presentation, page-6

Here's a scenario for you:

Somebody deposits $10k, keeps it there for a week, then makes a trade. Then for 3 weeks does nothing. Then repeats the process.
Or alternatively, they sell something for $10k, leave the cash for a week while deciding what to buy/do with it. Then for 3 weeks after does nothing. Then repeats the process.

In both scenarios, they had $2500 average cash balance for the month, but do they need waking up to put it in a term deposit? Actually it was $10k sitting in cash for a week of the month. Not $2500 for a full month.


I doubt many people are leaving $50k in cash in their Selfwealth account for 6-12 months straight. Most people would have varying cash levels over time as needed for investing purposes. It seems like normal investor behavior to me. So it makes no sense that users will withdraw all of their cash. But it makes sense that cash balances will reduce some (eg. the guy who was previously leaving $50k for a week will still be happy to do so, but the guy who was leaving $50k for a month has some chance of putting it in a term deposit for the month instead, while previously with RBA rates lower he might not have bothered).

Or the people with <$10k cash balance - for many people it would not be worth the effort to withdraw, redeposit, track interest income and so on. If they're wealthy enough to be investing, maybe their time is valuable.